• Report: #369163

Complaint Review: Federal Debt Reduction Inc

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  • Submitted: Tue, September 02, 2008
  • Updated: Thu, October 23, 2008

  • Reported By:New Port Richey Florida
Federal Debt Reduction Inc
8747 Wolf Den Trail, Port Richey FL 34668 Port Richey, Florida U.S.A.

Federal Debt Reduction Inc Debt settlement, fraud, misleading, company ruins your credit, FEE's Port Richey Florida

*REBUTTAL Owner of company: UPDATE

*REBUTTAL Owner of company: UPDATE

*REBUTTAL Owner of company: UPDATE

*REBUTTAL Owner of company: UPDATE

*REBUTTAL Owner of company: In Answer To "Mr. Ray"

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This company mis leads their clients. They only do debt settlement. Not debt consolidation. They tell you this is good for your credit and will ot hurt it. They do not pay your creditors, they keep your money each month until all of your accounts are in collections and then attempts to stlle the debt for pennies on the dollar. Credit card companies, banks and other lending agencies will not work with them. Your accounts must go collections first. They tell you this will only improve your credit. I asked my creditors that and they told me that this company is mis leading people. They asked me if you lent us $2500 and we paid you back $500 would you lend me money again. That said it all. It is worse than bankruptcy. This company is now being envestagated at the state and federal leval. Beware of this company. Do not give them any money or acces to your accounts or personal information. They charge large fee's and are not a non profit organization. The owner is a crook. Also dba VIA Marketing.

Ray xxxxxxx
New Port Richey, Florida
U.S.A.

This report was posted on Ripoff Report on 09/02/2008 07:12 PM and is a permanent record located here: http://www.ripoffreport.com/r/Federal-Debt-Reduction-Inc/Port-Richey-Florida-34668/Federal-Debt-Reduction-Inc-Debt-settlement-fraud-misleading-company-ruins-your-credit-369163. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 0Consumer 5Employee/Owner
Updates & Rebuttals

#1 REBUTTAL Owner of company

UPDATE

AUTHOR: David Vogel - (U.S.A.)

To date, we have yet to hear from "Mr. Ray Stevens" of New Port Richey, FL. regarding his "complaint".



David R. Vogel
Managing Director

Federal Debt Reduction, Inc.
VIA Marketing Services
1.866.551.3614
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#2 REBUTTAL Owner of company

UPDATE

AUTHOR: David Vogel - (U.S.A.)

To date, we have yet to hear from "Mr. Ray Stevens" of New Port Richey, FL. regarding his "complaint".



David R. Vogel
Managing Director

Federal Debt Reduction, Inc.
VIA Marketing Services
1.866.551.3614
Respond to this report!
What's this?

#3 REBUTTAL Owner of company

UPDATE

AUTHOR: David Vogel - (U.S.A.)

To date, we have yet to hear from "Mr. Ray Stevens" of New Port Richey, FL. regarding his "complaint".



David R. Vogel
Managing Director

Federal Debt Reduction, Inc.
VIA Marketing Services
1.866.551.3614
Respond to this report!
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#4 REBUTTAL Owner of company

UPDATE

AUTHOR: David Vogel - (U.S.A.)

To date, we have yet to hear from "Mr. Ray Stevens" of New Port Richey, FL. regarding his "complaint".



David R. Vogel
Managing Director

Federal Debt Reduction, Inc.
VIA Marketing Services
1.866.551.3614
Respond to this report!
What's this?

#5 REBUTTAL Owner of company

In Answer To "Mr. Ray"

AUTHOR: David Vogel - (U.S.A.)

Mr. Ray,

In answer to your allegations, the following is our formal response to same:

This company misleads their clients. FALSE!

Only after a thorough Debt Consultation, each Client is sent an Enrollment Package via United States Postal Service Priority Mail. This package contains, among many things, a written contract that provides FULL DISCLOSURE of our fees, procedures and services. Each Client must sign and return this contract to us before we may begin working on their accounts!

They only do debt settlement. Not debt consolidation. TRUE!

Federal Debt Reduction, Inc. is a Debt Arbitration/Settlement Company! Nowhere do we promote ourselves as a Debt Consolidation company!

They tell you this is good for your credit and not hurt it. FALSE!

We inform each Client that enrolling in our program will have a negative impact on their credit report(s) and/or credit score. See also http://www.federaldebtreduction.com/content/view/20/32/#q20

They do not pay your creditors, they keep your money each month until all of your accounts are in collections and then attempts to settle the debt for pennies on the dollar. TRUE & FALSE!

True, Federal Debt Reduction, Inc. does not make monthly payments to creditors! This is NOT how the Debt Arbitration/Settlement process works! False, Federal Debt Reduction, Inc. does not maintain our Clients money or funds each month, instead our Clients open a special purposes account (similar to a escrow account) at a FDIC Insured Bank called Rocky Mountain Bank & Trust in THEIR OWN LEGAL NAME with Global Client Solutions as the Custodian of that account. See also http://www.federaldebtreduction.com/content/view/20/32/#q13. True, creditors may send delinquent accounts to third party collection agencies this is the legal process that allows Debt Arbitration/Settlement to work! True, Federal Debt Reduction, Inc. makes settlement offers to creditors on behalf of our Clients! After all, Federal Debt Reduction, Inc. is a Debt Arbitration/Settlement company! Please refer to our web site and logo at http://www.federaldebtreduction.com. You will see:

FEDERAL DEBT REDUCTION
America's First Choice In Debt Arbitration <- Notice the word Arbitration not Consolidation!

Credit card companies, banks and other lending agencies will not work with them. Your account must go to collections first. FALSE & TRUE

False, Federal Debt Reduction, Inc. successfully settles unsecured debt accounts with most credit card companies (banks) or lending institutions and we have a proven track record together with Client references to prove it! True, generally speaking, most accounts must age, which may include the collection process prior to reaching a settlement agreement with the original creditor. Once again, this is the legal process that allows Debt Arbitration/Settlement to work!


They tell you this will only improve your credit. FALSE

Once again, we inform every Client that enrolling in our program will have a negative impact on their credit report(s) and/or credit score. Once our Client completes our program, their credit score will be improved. See also http://www.federaldebtreduction.com/content/view/20/32/#q20.

I asked my creditors that and they told me that this company is misleading people. NEUTRAL

We can't answer for this particular statement (hearsay) except to request that either Ray Stevens or anyone else reading this would consider the following:

What do you think your bank is going to tell you? Do you honestly expect that your bank will have you (the customer) believe anything about a program that will LEGALLY enable you to reduce your obligation to them resulting in a loss of revenue (money) for themselves? Were you mislead by your bank when your payment arrived at 5:01pm instead of 5:00pm, which resulted in a LATE FEE? Were you further shocked to discover that this LATE FEE resulted in an OVER THE LIMIT FEE when your available credit line wasn't sufficient to absorb this charge/fee? What's worse, were you surprised to see that your other creditors (after learning about your one-minute late payment) decided to adjust your APR from a cozy 9% to a default interest rate of 29% (or more) simply because you were late with another creditor (Universal Default Policy)? Please see the following link that will take you to a video produced by Frontline which aired on PBS television regarding the Secret History of the Credit Card! You'll be shocked to learn what the credit card industry is all about and how they are ruining the lives of millions of Americans! http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/


They asked me if you lent us $2500 and we paid you back $500 would you lend me money again. That said it all.

Well, this may have said it all for you, but 9 times out of 10 our Clients receive credit card offers from the very banks who were previously placed in our program!

It's worse than bankruptcy. FALSE!

We would encourage ANYONE who is contemplating the thought of bankruptcy to please contact us immediately (1.866.551.3614) for a detailed explanation of your options and to discover why Debt Arbitration/Settlement is a much better alternative to filing for bankruptcy! Please see http://www.federaldebtreduction.com/content/view/17/29/ to learn more!

This company is now being investigated at the state and federal level. FALSE

Federal Debt Reduction, Inc. has received no notice or any form of complaint(s) and is aware of no active investigation(s) for any action(s) that would constitute a need or purpose for same!

They charge large fee's and are not a non profit organization. FALSE & TRUE

False, the fees charged by Federal Debt Reduction, Inc. are actually substantially less than industry standard! True, Federal Debt Reduction, Inc. is NOT a non-profit organization and nor do we promote ourselves as one!

The owner is a crook. Also dba VIA Marketing.

This is obviously a matter of opinion, which brings us to what's most interesting about these allegations made by Ray Stevens.

First and foremost, we have no such prospect or client in our database by the name of Ray Stevens New Port Richey, FL. In fact, we attempted to locate and find the only Ray Stevens in the New Port Richey phone book however, the telephone number (727-372-4599) had been disconnected.

Secondly, Federal Debt Reduction, Inc. DOES NOT conduct business in the STATE OF FLORIDA! Please see the following link for a list of states that we do not conduct business in! One will clearly find that Florida is on the list of states that we do not market our program and/or services to! Was Mr. Ray Stevens exempt? Hardly! http://www.federaldebtreduction.com/content/view/20/32/#q28

Thirdly, VIA Marketing Services is a parent company of Federal Debt Reduction, Inc. and the most obvious way one would be familiar with the name VIA Marketing Services and/or its association with Federal Debt Reduction, Inc. would be if one had been contracted via VIA Marketing Services to work as a Debt Consultant for Federal Debt Reduction, Inc.!

It is our firm belief that this entire complaint and series of false and unfounded allegations were made by a disgruntled contract worker who had previously been contracted to work in the capacity of a Debt Consultant and who regrettably, in these difficult economic times and in the simple interest of securing a job by any means, misled and provided falsified information to VIA Marketing Services and/or Federal Debt Reduction, Inc., as to his or her work experience and knowledge of the Debt Arbitration/Settlement Industry!

Subsequently, this Debt Consultant was forced to resign from the company and simply has an axe to grind since unemployment compensation was not successfully achieved by same!

Federal Debt Reduction, Inc. maintains a strict work ethic which includes a long standing and age tested policy of The Customer is always right!. In holding true to this policy, we naturally find these unfounded allegations to be absolutely untrue and without merit!

That being said and in conclusion, if the real Ray Stevens (if he should exist) would please stand up and provide any type of proof to substantiate these allegations, we will be more than happy to make every effort to make clear any former misunderstanding or possible miscommunication!

In the event Ray Stevens does not respond to this formal response within 30 days, we will post (if permitted) an update to let you know!




Sincerely,

David R. Vogel
Managing Director

Federal Debt Reduction, Inc.
Via Marketing Services
1.866.551.3614
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