AMERICAN DEBT ARBITRATION ripoff - CALIFORNIA INJUNCTION CLEARWATER Florida

This timely report issued by the N.Y. attny Generals office.  They may be back under another name, or just operate in one less state, but a thank you for  a two year (almost) file kept by Rip off Report to expose these,,,, well Rip Off Report graduates!!!!
Beware to all considering debt settlement.  As out country morphs into a different type society, perhaps we shall improve inch by inch, a little at a time.  Maybe even these rip off report graduates will CHANGE:
American Debt arbitration after being exposed in several states still had the nerve to come here and pass themselves off as honest business people.  I do hope they return, do some good for the community, and do morph into honest businesspeople.  Thanks to Ripoff Report-Here is the text of the N.Y. attny generals press release, and comments on American Debt Arbitration.
 
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.
 

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Though true California has dealt with the company in question, they have been operating in other states. Their local BBB report has no info on them says they are being "updated". Disclosure issues remain the main problem with debt settlement companies, if they are using a marketing company to get them customers, the additional fees of the marketing companies will reveal that utilizing their services will not be cost effective. "Enrollment" fees, go to the marketing companies, then the settlement companies, or debt consolidation company takes over and their are additional fees. It could not be marketed successfully by a marketing company if they disclosed all the fees of both companies, anyone who could add, would see the expense of joining a program almost guranteed to ruin your credit, at least temporarily, and put you in a situation where you may be sued.

In these programs, large credit card debt, e.g. 15,000 thousand and higher will be closely scrutinized for suit, if the accoutnt is still at the bank when entering the program.
There may be some good ones out there, but they would have to be run by attorneys, who can protect you from suit in all fifty states. Disclosure, disclosure, disclosure.

Also remember the arbitration you are entitled to is run by a retired federal judge, or a attorney with ten years experience, the marketing companies lose the terms loosely in their pithces "you are entitled to arbitration", yeah the arbitration as explained in the original credit card agreement, not the arbitration as explained and defined in the dictionary. Debtors beware.