Has anyone dealt with a compnay called 'American Debt Arbitration'?
I did my research before I signed up with them and found nothing negative about them...I didn't find anything positive either and that should have been my first clue. I had called them in the past and they had been good to answer all my questions. Now, I've been paying them $300 a month for 2-3 months now and I am getting calls from lawyer's regaurding my credit cards. I'm scared out of my mind b/c I can't afford a lawyer! Has anyone here dealt with this company before? I was sure I had made a good decision...but then today I was worried and I did a web search--one I wanted to get their phone number to call them...and the other, I wanted to find out if there was any negative feedback about this company. I found this report:
Can anyone out there help me?
- Anonymous1 decade agoFavorite Answer
Commissioner has already ordered ADA, along with several other companies, to "desist and refrain from engaging in business as a bill payer and prorater unless and until they are licensed or exempt". This was way back in 2005. Here's part of the order issued by the CCC:
American Debt Arbitration, a fictitious business name owned by FGL Clearwater, Inc., is located at 12653 Pineforest Way East, Largo, Florida, which uses an Internet Web site, adatoday.com and a toll free telephone number 1-(800) 310-9317 to solicit consumers in California. It describes itself as a debt services marketing company that employs qualified debt consultants and markets a program, which is co-managed with Nationwide Asset Services, Inc. FGL Clearwater, Inc. dba American Debt Arbitration and Nationwide Asset Services, Inc. operate in connection with
several affiliated companies described below.
The above-named entities and individuals, working in concert or in participation among themselves or with others, engaged in the following activities in violation of the Check Sellers, Bill Payers and Proraters Law pursuant to the California Financial Code section 12000 et seq.
The above-named entities offered their services to California consumers by a variety of advertisements including various toll-free phone numbers and by means of several Internet Web sites.
The Internet Web sites for FGL Clearwater, Inc. dba American Debt Arbitration and Universal Nationwide, LLC dba Universal Debt Reduction, which are almost identical in appearance and content, represent to consumers that “[o]ur program is a hands-on solution that will help you:
• Cut the time frame to repay your debts from 15-30 years to an average of 30-36 months
• Save up to 50% or more of your current debt total
• Stop throwing money away on interest and fees
• Protect your rights under the Fair Debt Collection Practices Act”
The above entities represent that their services include negotiating with a consumer’s creditors to settle debts for less than the total amount that consumer’s creditors claim is owed. The above-named entities, individuals or others, acting in concert or in participation with them, receive sums of money from a consumer for the purpose of negotiating settlement or payment plans for consumers and/or paying a consumer's creditors. Specifically, these entities pay the bills of a consumer from the funds a consumer forwards to them for that purpose, by arranging
for periodic electronic funds transferred through the Automated Clearing House (ACH), whereby they initiate withdrawals from a consumer's trust account(s) for payment to a consumer's creditors.
To start the settlement process and in exchange for these services consumers are charged and required to pay to the above-named entities “set up fees,” “enrollment fees,” monthly administrative fees of $49, a “CFG Maintenance Fees” of $7.20 per month and “ACH/Electronic Check Fees” of $.45 per check. The consumer must also pay settlement fees of 29% of the amount consumers are “saved,” which gives them “an incentive to achieve the best settlements possible.”
Based upon the foregoing findings, the California Corporations Commissioner is of the opinion that Nationwide Asset Services, Inc. also known as Nationwide Asset Services; FGL Clearwater, Inc. dba American Debt Arbitration; Global Client Solutions, LLC and Universal Nationwide, LLC dba Universal Debt Reduction in concert and/or in participation with others, have been engaging in business as a bill payer or prorater as defined in the Check Sellers, Bill Payers and Proraters Law without a license from the California Corporations Commissioner.
Pursuant to Financial Code section 12103, the California Corporations Commissioner hereby orders Nationwide Asset Services, Inc. also known as Nationwide Asset Services; FGL Clearwater, Inc. dba American Debt Arbitration; Global Client Solutions, LLC and Universal Nationwide, LLC dba Universal Debt Reduction, individually, in concert and/or in participation with others, to desist and refrain from engaging in business as a bill payer and prorater unless and until they are licensed or exempt. This Order is necessary, in the public interest, and for the
protection of consumers.
Dated: December 5, 2005
Los Angeles, California
Acting California Corporations Commissioner
- Genuine GuidanceLv 71 decade ago
You should be worried.
You have been paying them instead of your creditors and now you are in default, and most likely, will be sued.
What this company and most other debt settlement companies do is have you pay them and they put it in an escrow account and then offer a settlement to your outstanding creditors. The problem is, your creditors do not have to accept a settlement, and in most cases, do NOT accept one and move forward in suing you.
As for not finding negative things, the reason you probably didn't is because outfits like this tend to change their name, phone number and website often. That way, the uninitiated may think they are an OK company since no one has complained. Thing is, they probably DO have complaints..but under a different name.
There isn't really any help you can get. This company has trashed your credit more, and charged you for the privilege. Now, they will say you are on your own to figure out what you can do to not get sued.
- bdancer222Lv 71 decade ago
They are a debt settlement company. Like ALL debt settlement companies, they take your money and let all your accounts go 90+ days past due. Then they start to contact your creditors (if they actually bother to do anything other than take your money) offering lowball settlements. Not only does this trash your credit, but as you are finding out, most credit card companies refuse to play and will immediately sue you. The settlement company won't be around to help with that lawsuit.
Stop sending them money and see if you can get a refund of any kind -- probably everything you've sent so far has gone to their fees.
You should have contacted a NFCC credit counseling service: http://www.nfcc.org/ These are legit, non-profit companies that offer debt management programs for a nominal fee. They don't settle your debt. They negotiate lower interest and payments so that you can pay off your debt. When you complete the program, you will have decent credit.
It may be too late for the credit counseling now if your accounts have been charged off.Source(s): BD
- Anonymous1 decade ago
American Debt Arbitration - Universal DRL - Nationwide Asset Services don't fall for the get out of debt trap, they took my money bankruptcy bound!! ripoff Phoenix Arizona
*Consumer Suggestion ..The latest on American Debt Arbitration from the North Carolina BBB
Read how Ripoff Report saves consumers millions.
Respond to this report!
Are you an owner, employee or ex-employee with either negative or positive information about the company or individual, or can you provide "insider information" on this company?
Victim of this person/company?
Are you also a victim of the same company or individual? Want Justice? File a Rip-off Report, help other consumers to be educated and don´t let them get away with it!
American Debt Arbitration - UniversalDRL - Nationwide Asset Services
1990 W Camelback Rd, Phoenix, Arizona 85015
Submitted: 3/20/2007 6:44:40 AM
Modified: 9/27/2008 5:47:35 PM
Cedar Rapids, Iowa
Ripoff Report Verified Safe
BEWARE- I signed up with American Debt Arbitration,A.K.A. Nationwide Asset Services to help me get out of debt with-in 2 1/2 years.
Sounds great right? well NOT
They are suppost to take a specific amount of money out of your checking account monthly and move it to a new 'holding' account that accumulates and then they negotiate with your debtors for a lower pay-off
Well they take an initial fee ($399.00) and then they take the first 3(THREE) deductions (mine was $550.00 a month) and say those are the enrollment fees -- so for me to 'enroll' in this wonderful program they deducted $2049.00 for themselves first.
And on top of this fee they charge you $56.65 a month for transaction/customer fees.
So now I am heading for bankruptcy, with a pending law suit
Cedar Rapids, Iowa
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- Anonymous1 decade ago
There seems to be only bad news about American Debt Arbitration. They take your money, but either pay very little to your creditors or they don't pay off your creditors at all. Cancel this as soon as you can. The following link is to another story about someone in CC debt.
There is some very good advice in the first reply (second post), which is:-
Try Crown.org and search for a Money Map Coach. There is no charge for their service and advise.
The other option is to contact your creditors personally. They may be willing to talk to you and make some sort of agreement.
So cancel your arrangement with American Debt Arbitration and try one of the two above.
For really, really bad news click on the next link
Sorry and good luck
- CatDadLv 71 decade ago
These programs involve deliberately ceasing payments to all your creditors to force your accounts into default to attempt settlements for less. The monthly payments you make go towards building a settlement account and to pay the firm’s fees. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating. You can never predict how your creditors will respond to the deliberate defaulting of your accounts...they might settle at 50%...or they might serve you a summons, take you to court...and if they win, you could be looking at wage garnishment. If you end up being sued....you'll be on your own.
People who sign up with debt settlement firms usually have an assumption that these firms can force your creditors to settle for less and their creditors obligated to do so. They aren't. I'd advise to cut your losses and get out now. You can't undo the damage already done to your credit rating.
- Go with the flowLv 71 decade ago
You could have done this yourself.
With a book from your bookstore or library.
All the tricks that these companies do are in these books.
Every single thing......
These companies charge you thousands.
They do not pay your bills for months.
This is to make creditors nervous and settle.
Most dont' so they continue to be unpaid.
Meantime, accruing interest and late payments and higher interest rates.
This ruins your credit - tremendously.
Most people end up in court anyway.
These companies - as you will notice - can not promise to keep you out of court.
You can still quit them - and do this all on your own with some seriuos education.
GET SMART AND GET A BOOK.
- Anonymous5 years ago
Because 34% of America apparently cannot do the math that tells you that to rely on the "2%" of Americans to pay down the debt means 2% of 330 million which, at a 100% tax rate for 20-years, would not even scratch the surface of US debt! In the below survey, 50% of Americans surveyed believed the saying "each according to his needs..." was said by George Washington proving that while not enough people vote, too many dumb ones do!
- TiLv 71 decade ago
Is banned from doing business in California, read the link below,