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Report: #278003

Complaint Review: Debt XS - Frisco Texas

  • Submitted:
  • Updated:
  • Reported By: Bellevue Washington
  • Debt XS 7668 Warren Parkway #325 Frisco, Texas U.S.A.

Debt XS Biggest Mistake of My Life!! Frisco Texas

*UPDATE EX-employee responds: What'd you expect?

*Consumer Comment: re:

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This was the biggest mistake of my life! I'm so ashamed I even signed up with Debt XS. In late 2003, after quitting my job, moving to Alaska, being out of work (I looked actively!) for three months, first/last/security deposits, etc., my debt became too much for me. I felt like I was drowning and sought help through debt consolidation. I researched Debt XS and found their affiliations and associations to be noteworthy and their reputation (seemingly) sound.

I signed up with my debt analyst who told me that he would be handling my account through my settlement and that at any time I could call or email him. He said that once my debts were settled my credit would take a small hit, but it wasn't anything that wouldn't clear up six months after my settlements were cleared.

As soon as I signed up, my debt analyst "quit". I was told that I should contact Customer Relations / Service with any questions. Everytime I called Customer Relations I was treated rudely and was told that I should email my questions. When I would email, they either were 1. never answered or 2. when a response finally came it was short, snippy and condescending. If they don't want people calling their phones,why publish your telephone number? Duh.

I was told that the creditors would call, but good heavens. They called my PARENTS!! My parents weren't even living in the same state as I was at the time - and they called my PARENTS!! Of course my parents called me in a panic - "what's going on?!" How embarassing. I was called at work by creditors - it was just awful! They even called one of my employers at the time!

My first settlement came in September 2005. After I had given Debt XS over $3K as "payment", they settled my account for what I would have probably been able to do. I owed a credit card company about $9K went I went into the program. Through late fee's by the time I settled I owed the credit card company over $13K. The debt was settled for $5,800. When the settlement call came from Debt XS I was treated to a representative basically yelling at me. "They want to settle! How much do you have? You have to get back to me right away!!" I scrambled trying to get everything together and when I did, they faxed me this crooked, messed up fax that said it was settled. I still think it looks phoney to this day.

As for this credit nightmare coming off my credit report? Fat chance. I settled in 2005 and this "charge off" is still on my report. The big three credit agencies won't remove it - so much for it coming off in six months! The debt should show as settled, but it still shows as a charge off.

My second settlement (I only signed up with two cards) came about after I'd received a letter from an attorney that said the collection agency for the credit card company had turned me over to a local attorney and they were going to take action against me. I called Debt XS and after being passed around to three people, they finally told me that I should be concerned because the collection agency had hired a local attorney.

The Debt XS representative said I should call the attorney and make first contact. I was floored. Debt XS had always said NOT to call the collection agencies. So I called and made the contact and worked my own settlement. I received a call from a representative at Debt XS a couple of days later asking about my case. Someone had picked up the fax of the letter I'd received and now someone else was working the file. I told this person I'd contacted the attorney's office and they flipped out.

They said that I had misunderstood what their representative said (not that he made a mistake - "I" had misunderstood!) and I shouldn't have started negotiations. Debt XS then contacted the attorney for me (how kind of them) and started their negotiations.

I ignored them and finished the settlement on my own.

My credit will take years to repair now. I have lived in shame and disgust for years and I'm so sorry I ever did this. If you're falling behind in payments or if you need help, contact the credit card companies. Work directly with them. Nothing ventured, nothing gained. They're not the big, bad wolf. Talk to them. Communication is key. I'm so sorry I did this debt settlement thing. The next few years will be spent repairing my credit. I had perfect credit before this - what was I thinking?!

Beware Debt XS!!

Erica
Bellevue, Washington
U.S.A.

This report was posted on Ripoff Report on 10/09/2007 02:40 PM and is a permanent record located here: https://www.ripoffreport.com/reports/debt-xs/frisco-texas-75034/debt-xs-biggest-mistake-of-my-life-frisco-texas-278003. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#2 UPDATE EX-employee responds

What'd you expect?

AUTHOR: fitzy - (United States of America)

POSTED: Tuesday, December 29, 2009
Having worked in the industry for 5 years, I know exactly the frustration you feel. I began enrolling folks like you into programs 14-48 months (depending on state and amt of debt). I was paid commission and leads of your names were pumped into the dialer by the 10,000.. I fully believed in the process at first, and so it was easy to sell it. I made it sound reeaaall good. I sold many of you on the hope of being debt free in 1/2 the time and for a fraction of the cost. But that's what I sold you: Hope.And just like the arthritic who calls the infomercial, the overweight guy ordering online, or the 50 something doing his/her 3rd credit balance transfer (at 0% WOW), you believed me because you wanted to believe it was possible. Truth is, and think about this.... All settlement firms claim to put $X aside each month until it reaches X% of your debt, etc.. Why wouldn't you just save it yourself? The very answer to that is the reason you said "yes" 10 times to the most intrusive questions on recording that allowed (legally) Debt XS to draft your funds. You were looking for an easy way out of the jam you caught yourself in by taking the easy way in. You borrowed more than you could afford to spend, and then you'd listen to anyone who'd tell you that you were special; you didn't have to pay it back! What were you thinking? Truth is, for every area of human weakness or deficiency there is a market. In debt, because 70% of the people willing to settle will be in a similar situation again, there is a perpetual market. The solution is far more simple than you'd think: Accept your credit sucks first. If you can't save 33% of what you owe by paying yourself within 2 years GO BANKRUPT second. Remember, your credit is a non-issue because you and borrowing can't get along. Lastly, NEVER speak to anyone calling you for your business that you have had no business with previously. Follow those steps and in 6 years you'll be guaranteed to owe another $32,500, right? Excellent Mr. _____, now what's the Institution you bank with? Oh, keep the routing number...'That's Yours!', just read the next series of numbers so we can verify you have an account in good standing, okay?
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#1 Consumer Comment

re:

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

POSTED: Tuesday, October 09, 2007
I wish everyone could read this. I am convinced that big businesses/financial firms want American's kept in the dark about these sorts of issues so that they can be exploited.

You do not need a debt settlement firm to negotiate any settlements....You can do this yourself and you are better off doing it this way as it puts you in control. Debt settlement firms are highly predatory and have a business model of targeting people who are in financial trouble....people who usually do not have the resources to fight back....evilly brilliant...

Note to poster: A "settled"/charge-off account can stay on your credit report for seven years....beginning with the date you first became delinquent and never became current again. "Settling" does not mean that the negative notation will go away...it doesn't....It's subject to the same seven years as a charge-off.
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