Federal Debt Assistance Association Debt Validation Scam Baltimore Maryland

Do not sign up for the Federal Debt Assistance Association Debt Validation Program before you read this. If you’ve already signed up for their program, read this before you cancel.

We were contacted by FDAA through a mail solicitation last month, and my wife decided to sign up for their FDAP program without my consent. I didn’t know what to think about it at first, but I wanted to give both my wife and the company the benefit of doubt. So I decided to do my own research on the Federal Debt Assistance Association and their Debt Validation program, and what I found out was very shocking:

First of all, debt validation is not a legitimate debt relief service, all these debt validation companies lie about getting your debts wiped out. No one has ever gotten out of debt by filing debt validation letters. It has never happened, and they know it. They will tell you to stop paying your creditors, let the accounts go to a collections, and they will send the agency a validation demand letter, the agency won't be able to validate it, and it will be wiped off your credit report.

This is a lie. The only real purpose for debt validation is to VERIFY that a debt is yours, but these companies twist the truth to make it sound like they are “invalidating” a debt to wipe it off your credit report, which has never happened, and they can never prove it to you.

They will tell you a debt that can't be validated is the same as a debt that you don't have to pay. This is also a lie. A debt that can’t be validated is going to be TEMPORARILY taken off your credit report (if at all), and then the collection agency will sue you, or they will refer the debt back to your creditors or sell it to another collection agency and the cycle continues again.

They will tell you not to feel bad about stopping to make payments to your credit card issuers, because the card issuers have a lender’s risk insurance policy to recoup 100% of your balance if you stop paying.

This is an outright lie, and they know it. There is no such thing as a Lender’s Risk Insurance Policy or default insurance on your credit cards. If your account gets charged-off, they will send it to collections, your credit score will be destroyed and they will attempt to continue to collect on the remaining balance. Many people have gotten sued because of debt validation letters, but they will not tell you that, and none of these companies are going to provide you with an attorney to defend you. You will lose in court because you have legitimate debt and a judge will garnish your wages.

They will tell you to use your available credit to pay for the program, and they will wipe out all the debt for you. This is a lie. Debt validation has never wiped out anyone’s debt. You will end up with more debt and your credit score will be ruined because they don’t actually do anything but file documents. Even their contract says “No Debt Relief Services Offered,” but they trick you to believing it means something else, they don’t want you to read it on your own.

They will tell you that they have an A rating under their parent company Clear Solutions, Inc on the BBB, but on their website there’s no mention of clear solutions. So clear solutions is either a sham company they using to protect themselves, or they are intentionally misleading customers to another company.

Also, I researched the owners of clear solutions and found the same owner is linked to Clearing Solutions, LLC, which has an F rating on the BBB and over 54 complaints that prove debt validation is a scam service. Here is the link to Clearing Solutions BBB website: bbb.org/greater-maryland/business-reviews/debt-relief-services/clearing-solutions-in-lutherville-md-90260007/reviews-and-complaints

They may also be linked to several other scam debt validation companies or operating under several names. This review is a warning about Federal Debt Assistance Association and mostly other debt validation scams out there that prey on desperate people and don’t help them.

We canceled their service and my wife and I have contacted the FBI, but they don’t move quickly enough until more victims come forward to shut these scam operations down. If you have been a victim of Federal Debt Assistance Association or any debt validation services, you should request a full refund, and report them to the FBI, and post online reviews to warn others too.