• Report: #370321

Complaint Review: Nationwide Asset Services, Inc And Global Client Solutions, LLC And American Debt Arbitration

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  • Submitted: Sat, September 06, 2008
  • Updated: Fri, January 22, 2010

  • Reported By:Delton Michigan
Nationwide Asset Services, Inc And Global Client Solutions, LLC And American Debt Arbitration
1990 West Camelback Road, Suite 215 Phoenix, Arizona U.S.A.

Nationwide Asset Services, Inc And Global Client Solutions, LLC And American Debt Arbitration Promises to Negotiate Debts, No Results, Just Law Suits and Fees Phoenix Arizona

*General Comment: Come Correct

*General Comment: The latest on American Debt Arbitration and Nationwide Asset

*Consumer Suggestion: Things have changed

*Consumer Suggestion: I urge you to continue your efforts-Attorney General's of states, Federal Trade Commission ets.

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My wife and I signed up with Natonwide in an attempt to get our debts under control and paid off. We paid them in excess of $2,000.00 in fees and $3,000 in funds to negotiate with. They assured and promised us that they were in contact and negotiations with the five or six accounts we have them and that we would not be exposed to any law suits. To the contrary, they never contacted one debtor, never negotiated one debt and, we were sued and my wife's wages garnished. This while we had $3,000.00 in their account to settle the debts. I settled one debt and they refused to pay the creditor causing yet another law suit to be filed.

They have a deceptive practice of obtaining large enrollment fees and then utilizing the funds paid to them each month to collect interest and to tap the individuals account for monthly fees.

They have no intention of settling any debts because they are making their money by maximizing the interest they collect on the accounts and prolonging the period of time they can tap the account for fees.

After we cancelled the account with them, we settled five of the six debts within 30 days. We are now taking action to recover all of our enrollment fees and monthly bank fees as a result of them breaching the agreement.

We have filed complaints with the Attorney General's Office in Arizona, Florida, Colorado and Oklahoma. We have filed complaints with the respective DPR's in each state and the respective Better Business Bureau in each state. We have forwarded all of our complaints to an attorney in hopes of organizing a Class Action Lawsuit to recover our losses.

This company(s) created undue financial hardship on us for 16 months and worsened our credit position. They did absolutely nothing. They have a business practice that insures that you never speak to the same person so that there is nothing ever being resolved. It is a cycle of confusion intentionally created to prevent any results from happening.

Delton Ron
Delton, Michigan
U.S.A.

This report was posted on Ripoff Report on 09/06/2008 06:53 AM and is a permanent record located here: http://www.ripoffreport.com/r/Nationwide-Asset-Services-Inc-And-Global-Client-Solutions-LLC-And-American-Debt-Arbitration/Phoenix-Arizona-85015-3465/Nationwide-Asset-Services-Inc-And-Global-Client-Solutions-LLC-And-American-Debt-Arbitrat-370321. 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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#1 General Comment

Come Correct

AUTHOR: Pozjetsfan - (U.S.A.)

I find that hard to believe.  Whenever you get involved in a settlement company, two things take place when an account gets settled.  One: a letter is sent to the customer stating that the account now has a zero balance and has been satisfied.  Two:  it is reported on the credit that the account was settled for the negotiated settlement.  If you had letters from your creditors stating that your account was paid in full and they are still coming after you, then it's not nationwide but your creditors.  They will lie, cheat and steal your money because the average American does not know about the Fair Debt Collection Practices Act and their creditors did not tell them which gave them the leverage to continue collecting illegally.  Look up the information America.  Protect yourselves from your own banks and creditors.  This is information that they do not want you to know and they will not openly share it with you.  This is federal laws that are very strictly enforced by the Federal Trade Commission and are punishable in the court of law.  These violations are federal offenses.  You are also protected on a state level with your consumer protection laws for your state, look them up.
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#2 General Comment

The latest on American Debt Arbitration and Nationwide Asset

AUTHOR: Justice once and for all - (U.S.A.)

As of yesterday the Attorney General of N.y. issued a press release indicating the latest action regarding Nationwide Asset and their so called affiliates. 
Too bad, but rest easy Ron.  Those who laugh last, laught best.  N.Y. attny general press release as of yesterday.  Timely I'd say around Halloween:
Latest development in Cuomos probe into debt settlement and collection industries
BUFFALO, N.Y. (October 15, 2009) - Attorney General Andrew M. Cuomo today announced that his office has won a lawsuit against a national debt settlement company, barring the company from doing business in New York state unless it posts a $500,000 performance bond to protect consumers. The decision also levies nearly $200,000 in penalties against the company for defrauding thousands of New Yorkers who looked to the company to negotiate reductions in their personal debt.
As a result of the lawsuit filed in May, the Hon. Patrick H. NeMoyer in Erie County Supreme Court issued a decision that bars Nationwide Asset Services, Inc. (NAS), based in Phoenix, Arizona, along with its affiliates, from doing business in New York state unless it files a $500,000 performance bond to protect consumers. Additionally, Cuomos office obtained a civil penalty of $198,100 after the court determined that nearly 1,981 consumers were defrauded.
The court found that the majority of NAS customers were promised a 25 to 40 percent reduction in their outstanding debt but never saw such reductions. Only one-third of one percent of consumers received such savings. The other customers suffered continued harassment and lawsuits by creditors and had their credit ratings destroyed.
This company made promises to people who were searching for financial help and trying to turn their lives around, said Attorney General Cuomo. But the promises never came true and, in many cases, New Yorkers were left in worse condition than when they started. Thanks to this ruling, the company has to put its money where its mouth is with a performance bond if it wants to do business in New York.
The courts decision also orders NAS to compute restitution for 180 consumers who successfully completed the program but actually paid more in fees and settlements than the amount originally due on their debts. NAS has been ordered to compute this consumer restitution and the specific amounts will then be verified by the Attorney Generals Office and the court.
The Attorney Generals investigation and suit determined that NAS and its affiliates, ServiceStar LLP and Universal Debt Reduction, LLC, and its marketer, FGL Clearwater, Inc. d/b/a American Debt Arbitration, based in Florida, engaged in fraudulent and deceptive business practices and false advertising and made significant profits by selling misleading debt settlement plans that very rarely delivered the promised benefits to consumers dealing with debt.
Debt settlement companies represent that they can substantially reduce consumer debt by negotiating directly with creditors, on behalf of their customers, to pay off outstanding balances at less than the amounts owed. However, Attorney General Cuomos Office has found that many of these debt settlement plans are often flawed and, based upon complaints, often mislead consumers about the nature of their services. The debt settlement plans are generally premised on consumers aggregating savings, over one to three years, from which both the payment of the companys fees and any negotiated settlement are to be made. Yet most consumers who are targeted by these companies are unable to meet the savings requirements because of their already-precarious financial situation.
In addition, the companies often take their substantial fees up-front and keep these fees even when they do not provide the promised services. As a result, many consumers find themselves worse off financially because of these debt settlement plans.
As part of his broad investigation of the debt settlement industry, Cuomo issued subpoenas to multiple debt settlement companies and affiliated businesses. The investigation has sought to uncover how these companies structure their fees, how many people have actually benefited from their services, and what kinds of relief are the companies actually providing.
Many consumers may benefit more from working directly with their creditors, seeking credit counseling, or consulting an attorney about filing for bankruptcy. Additionally, even when enrolled in a debt settlement plan, consumers are often still subjected to collection efforts and lawsuits filed by their creditors. Consumers are even told not to discuss their debt situation with creditors.
Earlier this year, Cuomo launched a Web site - www.NYDebtHelp.com - that explains consumer rights, allows victims of debt settlement companies quick access to the Attorney Generals office to file complaints, and outlines the stages of the Attorney Generals investigation. Consumers who believe they are being defrauded by a debt settlement company are urged to contact the Attorney Generals office at 800-771-7755 or www.oag.state.ny.us .
The lawsuit against Nationwide Asset Services, Inc. was handled by Assistant Attorney General James Morrissey under the supervision of Russell T. Ippolito, Assistant Attorney General-in-Charge of the Attorney Generals Buffalo Regional Office and J. David Sampson, Deputy Attorney General for Regional Affairs.
Note the adjectives to describe American Debt Arbitration.  And I had hoped that projetsfan really might be able to turn it around.



 
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#3 Consumer Suggestion

Things have changed

AUTHOR: Pozjetsfan - (U.S.A.)

Ron,

I am so sorry that your experience with NAS was one of distrust, anger and seemingly foul intentions. I have a working knowledge of this group and as far as I know, their business practices have been sound. I know that in a negotiation process, certain events must take place. I do know that NAS requires to have enough money in your savings account to work with. However, were you aware that as a rule, creditors will not even speak to negotiators unless the account is 3-6 months delinquent? I know that this is key information that probably should have been addressed to you and your family from the beginning. That means that if you enrolled into the program and your bills were current, there would have been that 3-6 month window before they would even speak with NAS. Again, this is SOP. NAS also will set up block payments to creditors that threaten law suits and summons but that is at the discretion of the creditor themselves and not NAS. They will only take what they are given as a settlement. This group makes $0.29 for every dollar that they save their clients so I would assume that they try their best to make as much money as possible with that fee. All fo the fees are rolled into the final settlement as well. I would encourage you to persue some sort of action but I also understand that the money you had in your special savings account was more than likely refunded to you. NAS does not keep that money so your loss is the application fee, the set up fee and the first three monthly payments. I know that the parameters of the program are explained and verified by recording that the customer agrees to by saying "yes" to questions asked on the verification. This process is done twice. Again, I am very sorry for your trauma but please understand, creditors do not like to advertise debt settlement and in most cases, make it a very difficult solution to persue to the point of counter offering customers. I hope that things have been better for you and your family.
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#4 Consumer Suggestion

I urge you to continue your efforts-Attorney General's of states, Federal Trade Commission ets.

AUTHOR: Justice Once And For All - (U.S.A.)

There are other threads regarding these same companies on this website as well as other consumer oriented websites.

I want to commend you Mr. Ron, for understanding this still unregulated business, which attracts otherwise honest businessman to see how far they can take settlement till the complaints reach proportions and fines and they have to return money, yet living high on the hog in the meantime.

I hope you will read the other threads regarding American Debt Arbitration, and Nationwide Asset Management, and wish you well with your class action suit.

Many of these companies banned in certain states, yet other states have not had the opportunity to impose rules and regulations, I think it will take Federal action to finally reign them in.

This business could be an honest business, if there were not marketing business taking those up front fees. If they had a fifty state attorney representation set-up, and collected fees on the backend.

The people they tend to employ, laughing when you are calling in you just received a summons is terrible. Must be having "smoky" lunch breaks, doesn't sound anything funny to me if someone had been paying me fees and I was trying to help them.

I urge you to continue your efforts to bring to the attention of any authorities possible, the class action suit is a great idea, and a full federal investigation into these companies is long past due.

They are so unregulated that I have heard that some are even working completely silent, not even paying income taxes the business completley off the books to stay under the radar, have people working from home.

You seem to understand how they operate, good luck, I encourage your actions.

My apologies to any attorney operated settle companies that will onlly handle certain accounts and on a limited basis within the scope of their ability to defend a debtor trying to make a just and legal settlement.
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