Credit Alliance Group Complaints & Reviews

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resolved to the customer's satisfaction
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Credit Alliance GroupProduct Rebuttal

Freedom of Speech and the Debt Settlement Industry
Credit Alliance Group’s Take
Dallas, Texas

Debt settlement has been scrutinized for years. The community tends to look at the negative aspects of the industry without seeing any of the positive. With the Constitution infringing the right to freedom of speech, it has born websites, blogs, articles, etc. that allow citizens to express their concerns or praises on certain subjects. God Bless America! With that said, complaints have been posted about our corporation that we would like to clarify; it is our right as an American. Please note that a greater portion of the complaints listed are mere criticisms on the industry as a whole. Hopefully this article will squash any unjust truths that have affected the integrity of Credit Alliance Group (CAG).

COMPLAINT 1 – CREDIT SCORE
Sadly, anything that you do other than pay your creditors EVERY month in FULL and ON TIME will have an impact on your credit score. We at CAG offer a HARDSHIP Debt Settlement program. We help consumers that can no longer pay the full amount of their unsecured debts due to adversity avoid bankruptcy. With that said, clients enrolled in our program are not, or will shortly not be, paying their creditors; thus causing their score to be affected, or soon be affected. We are doing nothing more than what is inevitable. No creditor will negotiate an account that is current.

COMPLAINT 2 – VOLUME OF CALLS
In a settlement program, the client makes the choice to not make monthly payments to their creditors. Thus provoking the creditors to call and try to receive payment. But, as a client enrolled into our program, we send a Cease and Desist letter along with a Power of Attorney to the original creditor or collection agency in charge of the account(s). We then send the client a DAAN module to connect to their home phone that will notify the creditor that you have retained a third party representative to handle their unsecured account(s).

This will regulate the amount of contact that the client will receive from creditors or collection agencies. It will not stop it completely. Original creditors, once they become aware that they will not be receiving payment, more than likely will sell the clients’ account(s) off to a collection agency. We will then have to contact the new company in charge of the account. Unfortunately, companies do not notify us of this when it happens. As a client, you are responsible for notifying us of this. That way we can contact the new company ASAP and help with any collection calls.

COMPLAINT 3 – FEES
ALL fees are disclosed in our contract that EVERY one of our clients sign upon enrolling – PLAIN AND SIMPLE.

COMPLAINT 4 – NAME CHANGE
We are still proud to be named Credit Alliance Group. We do though have different departments within our company with specific names. They are as follows:
1. Credit Alliance Group – Our Credit Officers responsible for initial enrollment
2. Client Services Group – Our Client Relations Department
3. Credit Alliance Services – Our Administration Department
4. Alliance Invoice Group – Our Accounting Department

COMPLAINT 5 – DEBT AMOUNT GOING UP
When a client enters the settlement program, they make the decision to stop payments to their creditors, if they are not already delinquent. The creditor(s) then will continue to tack on additional interest and fees. One of the reasons why we quote our clients between 40 and 50% is because of this. We will go in and try to settle at the lowest percentage that we can with the verified debt amount that we validate at the beginning of the program. By settlement time, we should be able to settle the account at no higher than 50%. We are able to do this with the good relationships that we have each lender.

COMPLAINT 6 – BBB RATING
Due to the nature of the business, it is practically impossible for a debt settlement company to have a rating other than a “D” or “F”. ”Debt Settlement companies will be given these ratings despite the number of consumer complaints, how those complaints have been resolved, or the business practices of the settlement firm under review “ as stated on the Credit.com website. What consumers are advised to do is look at the amount of complaints that the company has. We have had only 26 complaints within the past 3 years, 20 of which have been resolved. If you would like to delve further into this, please check out the article at:
http://www.credit.com/news/experts/2009-03-12/settlement-companies-protest-better-business-bureau-rating-system.html .
And then refer back to the BBB website at http:///www.bbb.com

COMPLAINT 7 – CUSTOMER SERVICE
Here at CAG we maintain a professional and proficient client relations department. What needs to be realized is that we handle an abundance of accounts. We are here to help everyone that utilizes our services and will do everything within our power to help the client succeed in the program designed for them.

It has been mentioned that previous clients have been handled unprofessionally by our customer service team. We do apologize to any client that has received this sort of treatment. It is completely unacceptable. With that said, we need to know this feedback ASAP so that we can get the situation resolved. We can’t fix the problem if we are not informed of it. All of our calls come through a switchboard. My suggestion would be to ask the receptionist the name of the manager of the department that you have a complaint with, extension, email address, and then asked to be transferred. You may get a voicemail, but as stated, we handle a plethora of client accounts. We will get back to you as soon as possible.

COMPLAINT 8 – DOING IT YOURSELF
Consumers do have the capability to settle on their own. However, most are not disciplined enough to do so. That is where we come in. We have proven methods and tactics that enable us to negotiate to lower amounts then they would on their own. Once again, we have established relationships with lenders that allow us to settle for less.

COMPLAINT 9 – TAX CONSEQUENSES
With taking the debt settlement approach, we settle the clients’ accounts for on average between 40 and 50%. The remaining balance is forgiven. The creditor is then required to report the cancelled debts to the IRS if the cancelled balance is $600.00 or greater. The positive to this is that if the client does end up having to owe taxes on the cancelled balances, they obviously saved a great deal of money. Generally that amount plus the taxes will still be much less than what they owed to begin with.

However, the IRS does not require taxpayers to report forgiven debt if the tax payer was insolvent, owes more than they own, at the time the creditor forgave the debt. The majority of the people in serious debt help, i.e.: our clients, have a negative net worth and are therefore insolvent.

When it does come to tax time, we would suggest getting professional tax advice specific to your situation. The IRS does have an insolvency form that can be completed in order to offset any possible 1009 form issued by a creditor, if you qualify as insolvent. The form is listed as FORM 982 and can be found on the IRS website at http://www.irs.gov.

COMPLAINT 10 – BEING SUED
The creditor has every right to sue to collect a debt. The good thing is that if a creditor takes the client to court, they will have proof that they are actively working to repay the debt. It looks a lot better to the judge when you show him proof of the program. Creditors are less likely to take you to court because they look like bullies when you’re actively working to pay them back.

In the event that a client is sued during the program, we will attempt to settle the account so that the creditor does not continue to pursue legal action. However, the account will more than likely be settled at an elevated amount. Going into the program, each client needs to realize that there is the possibility that the creditor could take legal action, which is ALSO disclosed in the contract.


I hope that this clears the air on a lot of the fallacious accusations that have come up on Credit Alliance Group as well as the Debt Settlement industry. As stated before, feedback is always good; it is our right as an American to give it. With that said, I hope that any concerns would be addressed with us before laying it all out on the table for America to see without first finding out the facts.

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    5 Responses
    • Zo
      zoeb May 28, 2013

      victim 899- filed for banruptcy due to credit alliance .

      0 Votes
    • V6
      v6lop May 28, 2013
      This comment was posted by
      a verified customer
      Verified customer

      can an indiviual lawsuit against Shane garner, mary schnickel, Christina gomez, silvia leiva, katherine listi to name the few to help get our lost money back from credit alliance ? 9k lost ... ready to join forces and do something. any legal advise would be helpful

      0 Votes
    • De
      DenisStarr Dec 23, 2012

      It is sad that you need help, put your trust in someone, and get screwed doing it. I spoke at length with the rep before signing up for their program. I made several years worth of payments, and even paid up the account in full about 6 months early. I managed to build a huge escrow account in the process. In two cases, a WAMU account and Beneficial account received settlement offers that my escrow could have covered, but Shane Garner would not agree to the settlement terms and pay them off. I am now being sued by Beneficial, and that account has increased by about $4000.00 since joining CAG. I had to spend over $500.00 to respond to the court while CAG sits on my money. I call and leave request to call me back, and get no return calls. I ask for updates, and get ignored. I send emails asking for information, and get no replies. I ask for my escrow money, and am told they will not give it to me. I made a big mistake by contracting with CAG. I hope anyone considering to use their service will look somewhere else, or kiss their money, and credit goodbye.

      0 Votes
    • Ge
      George Vest May 04, 2011

      This company is the largest scam going today. How low to take advantage of people in this day and age. Getting them into a contract they cannot get out and have small print or facts they do not tell you ahead of time. This company is taking off because of the economy now. How un-american to to take advantage of your fellow american. just look n the facebook page with the links to all the bmw's and parties and vacations. I used this company, believe me look toward the government first http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm they can give you all the facts and believe t or not you can do all this yourself! These people live off the bad fortune of others and only care about the money they get from unfortunate people.

      0 Votes
    • Do
      dozo Aug 07, 2010

      I am currently a customer of CAG, and I am currently being sued by one of the credit card companies. I emailed my summons on a monday and friday my wife and I called to get any updates and nothing was done. Explain to me how they haven't done a thing to contact the credit card's lawyer? I spoke to Brittnay Campbell and she tells me that they have been contacted and they are awaiting for a call back. And friday when my wife called Christina Gomez told her that nothing was done to call the lawyer representing the credit card company. I am told one thing and my wife is told another thing. If they are such a good company, how come my wife and I are receiving two different informations?!

      0 Votes

    The complaint has been investigated and
    resolved to the customer's satisfaction
    Resolved
    Credit Alliance GroupAwful product, even worse customer server

    "We provide you with exceptional customer service designed to effectively achieve your goal of becoming debt free. Creditors will stop calling. Save 40-60% off your credit card debt. Attempting to resolve a debt through settlement is looked upon more favorably than filing bankruptcy."

    Sound familiar? Don't believe the hype. After enrolling in their program the volume of calls I receive from debt collectors INCREASED exponentially. My guess is creditors are beginning to become aware that these guys are full of BS. CAG will tell you to forward these calls to them, or send them the information to file a complaint with the FTC. Once you do, they send you links to the FTC and/or prompts on what to tell your creditors when they call. Essentially, you end up doing their job for them.

    Their customer service is absolutely horrendous. E-mails to them frequently bounce back or go unanswered. In the rare chance that you do hear back from them, it is not for at least a week. This may be acceptable from a creditor, but not from someone who is supposed to be working for YOU. Talking to them on the phone is even worse; they treat you just like those awful credit collectors. Their disdain for your situation and concerns is clearly apparent.

    Once they have a few payments, they quickly change. If you try and cancel and get your money back, they inform you of "service fees" that just happen to total the sum of your payments to them. I've worked with the following reps at CAG and all have been awful:

    Bryan Garner
    Eric Pinola
    Karen Snyder
    Charrissa Whitley

    In the time since I've signed up for debt settlement with CAG I've received several debt settlement offers from my creditors. They mostly range from 40-60% off of my total debt. I personally negotiated one down to just under 40% and am working on the others. Debt settlement is a hot topic at the moment. Do your research online and buy a book or two at Borders. Don't pay CAG for something you can do yourself. Save yourself the headaches!

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      3 Responses
      • Ji
        jillie miller Oct 14, 2011

        After two going on three years my husband and I started getting frustrated because nothing was getting paid. We paid everything because we were going to court and paying off the accounts they were taking care of. They were rude and made up excuses. Never returned phone calls. Then I started to email and had to tell them that they are sending faxes to creditors I already paid. They said my emails were threating. I never threated anyone. I would ask questions such as "have your researched any of our accounts" This is my final answer from credit alliance .
        "Your account is closed. NO ONE WANTS to deal with your craziness here. Your unhappy before you wake up each day. "

        Shane Garner

        They sent me a legal contract of some sort signing that I would not do any legal actions against them and they would give me a refund of course after they took their fees. They forgot to put our names on it. The next form they gave us the wrong amount. BELIEVE ME DON'T LET THESE PEOPLE HANDLE YOUR MONEY. Honestly I am trying to save you alot of money. There is no communication, within a year you will be in court for these debts, they do not research accounts nor ever call your creditors. I ended up paying everything they were supposed to handle before they even started. They are highly unproffesional and very immature.

        0 Votes
      • Sh
        Shane Garner Oct 09, 2009

        To Credit Alliance Group:

        It’s hard to describe the amazing feeling I experienced when on July 6th, 2009 I got an E-mail from Client Relations at Credit Alliance Group saying in bold letters that I had completed the program. My last account had been settled – amazing.

        I signed my contract with CAG on May 31, 2006. The representative estimated that it would take three years to work through the program and he was right. I feel stronger, I feel lighter, I even feel taller– hard to describe the exactly how I feel – great, I’d say

        My deepest thanks to everyone at CAG. Your service was utterly professional, always responsive and personal.

        I can’t say that it was easy, but with you shepherding me through a complex and stressful process, I always felt that it was the right thing to do.

        To everyone enrolled in the program, I say, “stick with it”. To those thinking of enrolling, I say, “do it!” It works.

        Thank You All,

        D. Buraczeski

        0 Votes
      • Ve
        VeryUpset9 Aug 08, 2009

        The destroyed my fair credit rating and now have to take them to court to get my money back - stay away from them no matter how desperate you may feel your circumstances have become.

        0 Votes

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