There was a very recent class action suit against NoteWorld, NoteWorld Servicing Center, Nationwide Support Services, and Freedom Debt Center.
As more debt settlement companies are nailed for dubious acts and unfair practices the participating vendors are going to be sucked in as well. I would imagine the money holding companies are going to be labeled more and more as co-consiprators in the debt settlement company operations.
While the first reaction is this is unfair, keep in mind that both NoteWorld and Global Clients Solutions are acting as independent escrow companies and their client is the consumer. In my opinion both companies have a fiduciary responsibility to their client, the consumer, to make sure they are not aiding debt settlement companies in illegal practices.
If you are with a debt settlement company, just about now you may be thing, “that’s ridiculous”, but it is actually not. It’s an argument that the FDIC raised in their action against Rocky Mountain National Bank, a duty to make sure their debt settlement clients were complaint with state laws and not misleading or harming consumers..
As this recent suit claims “NoteWorld, Nationwide and FDC, acting in concert, perform functions instrumental to the carrying out of an illegal debt adjusting enterprise that victimizes Washington consumers.” – Source
The suit also brings up that NoteWorld is not an inexperienced member of the debt settlement industry and lists their known clients: Accredited Financial Corporation, Amber Network, Best Debt Options, Beyond Financial Service, Brite Credit, Brite Credit 123, Century Negotiations, Clear Debt Solutions, Coastal Debt Solutions, Consumerwise Debt Solutions, Counsel 4 Debt Relief, Countrywide Debt Solutions, Credit Care, CreditCarePro, Debt Help Center USA, Debt National Relief, Debt Reinvestment, Debt Solutions, DebtErase, DebtPointer, DebtPro, DTS Financial Group, EAC Financial, FBL Associates, Freedom Debt Solutions, Help Settle, Helpsettle.com, Innovative Debt Solutions, Lifeguard Financial, maximum Debt Solutions, Moran Stevens Financial Solutions Company, National Financial Freedom, Nationwide Consumer Advocacy Group, On Track Financial, Personal Debt Systems of America, Princeton Debt Management, Reduce My Debt, Settle A Debt, Settlement Corporation of America, SilverLeaf Debt Solutions, The Debt Answer, The Debt Cure, US Consumer Support, VisionDebt.com, World Debt Solutions.
The allegation is that front-end debt settlement companies are selling questionable or non-compliant services that may or may not be legal and that may harm consumers. NoteWorld, in partnership with Nationwide then performs the back-end to these harmful services and benefit from the activities of the feeder debt settlement companies.
The suit alleges that Freedom Debt Center, and potentially other debt settlement companies are charging consumers fees that are not in compliance with state laws and NoteWorld and Nationwide are the ones actually debiting the accounts of consumers and transferring illegal fees from consumers into accounts at NoteWorld and then pay those illegal fees out to the debt settlement companies. These activities also generate profit and income for NoteWorld and Nationwide.
NoteWorld, NoteWorld Servicing Center, Nationwide Support Services and Freedom Debt Center Slapped With Class Action Suit by Steve Rhode
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