DebtXS Scam settles about 2% of total accounts enrolled, fees for services that they found confusing or misleading Addison Texas

This company settles about 2% of the total accounts enrolled in the program. Here is an article from The Dallas Morning News on September 11, 2006. If you have a complaint against this company please file a complaint with the Texas Attorney General online at

oag.state.tx.us or call toll-free at (800) 252-8011.

That is the fastest and easiest way to come to a resolution with this company.

Dallas debt settlement firm reaches agreement with AG

Consumers entitled to refunds under pact


05:29 PM CDT on Monday, September 11, 2006

From Staff Reports

An agreement with a Dallas-based debt settlement company will result in refunds to consumers who complained about fees for services that they found confusing or misleading.

In a voluntary compliance agreement announced Monday, DebtXS LP agreed to halt advertising deemed deceptive by the Texas Attorney General's Office.

?Consumers who are working in good faith to pay off their obligations need to know their rights and should never be exploited by a third party who claims to bring them good tidings,? Attorney General Greg Abbott said in a statement. ?Consumers should always remember there is no quick fix for debt or credit issues, and they should be wary of any company that suggests otherwise.?

Caren Hanson, a spokeswoman and lawyer for DebtXS, said the company has never been deceptive in its advertising. ?There was no finding of that nor have we ever done that,? she said.

The relatively new business of debt settlement led to confusion among many of the more than 1,200 Texas consumers who sought the company's services.

Among the issues was that DebtXS routinely charged a fee of 15 percent of the total amount owed by consumers. The fee was paid over several months via automatic withdrawals from their bank accounts, although some were unaware they had agreed to this arrangement. Many mistakenly believed the fees were being applied to their debts, according to Abbott's office.

Other consumers reported the company misled them by offering ?legal advice? as to whether they should file personal bankruptcy. Others saw a decline in their credit scores even if they successfully settled their debts, the attorney general's office said.

Claude Ducloux, also an attorney for DebtXS, said the company worked closely with the attorney general's office in reaching the agreement.

?My client is trying to be a leader in this industry, and it's a burgeoning industry, especially with the changes in the bankruptcy laws,? he said. ?We've come up with these standards that we think are going to be leading the debt settlement industry.?

Any consumer who entered into a contract with the company may file a complaint in writing alleging that they were misled or confused about the services and fees. The complaint may be filed with the company or the attorney general within 90 days, and DebtXS either will resolve the complaint to the consumer's satisfaction, or the complaint will be submitted for an independent review to decide whether DebtXS must provide restitution.

Consumers may file a complaint online at

oag.state.tx.us or call toll-free at (800) 252-8011.

Mary
Addison, Texas
U.S.A.