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Home > Debt Relief Industry > Credit Alliance Group and Credit Alliance Services Alleged to Have Not Helped Credit Rating. Hit With Class Action.

Credit Alliance Group and Credit Alliance Services Alleged to Have Not Helped Credit Rating. Hit With Class Action.

A tipster (send in your tips here) pointed out a recent suit to me in North Carolina, Deborah Sumlin v. Credit Alliance Group and Credit Alliance Services Incorporated.

The plaintiff alleges that Credit Alliance Group and Credit Alliance Services, out of Texas, were hired to provide assistance in improving, repairing or correcting credit records, credit histories and credit ratings. It seems the claims were made in conjunction with the debt settlement program offered through CreditAllianceGroup.net.

The suit states the Credit Alliance Group website made the pitch for debt settlement and stated:

Credit Alliance Group and Credit Alliance Services Alleged to Have Not Helped Credit Rating. Hit With Class Action.

That all looks like the usual.

The suit claims that it is a class action suit brought on behalf of all residents of the United States and North Carolina who in the previous five years had purchased services from the defendants.

Basically the suit appears to be against a debt settlement company that historically had charged advanced fees for promised debt settlement services and claims to no longer do that under the TSR. As part of that service it is alleged they made statements, as most companies did, that there would be a benefit to the credit through participation.

The attorneys in this case appear to be going after the issues of credit repair violations primarily instead of making this a case about debt settlement. If that’s the case, it’s a smart strategy.

Credit Alliance Group and Credit Alliance Services are said to have violated 15 U.S.C. 1679b(a)(4) of the Credit Repair Organization Act, concealed and failed to disclose initial payments were taken as fees, made misleading and untrue statements regarding their services, and violated the North Carolina Credit Repair Services Act.

This case reminds me a lot of a previous story I wrote in August 2010 in which I warned debt settlement companies that CROA issues were a problem. While the article was focused on the credit counseling ruling the examples and warnings given were applicable to debt settlement as well. You can read the article here.

You can read the full complaint here.

This case was filed by:

Schwaba Law Firm
Andrew Schwaba
525 North Tyron Street
Suite 1600
Charlotte, NC 28202
704-331-3938
[email protected]

Nicholson & Shumaker
Edward Nicholson
525 North Tyron Street
Suite 1700
Charlotte, NC 28202
704-331-3925

Credit Alliance Group and Credit Alliance Services Alleged to Have Not Helped Credit Rating. Hit With Class Action.
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Credit Alliance Group and Credit Alliance Services Alleged to Have Not Helped Credit Rating. Hit With Class Action. by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    Remember, the claim is that it was the site at the time the client enrolled. Not the current site.

  • Mike

    You’re right the link does work, I’m not sure what was wrong with my computer yesterday. If the allegations are plausible or not is really non of my concern. In my opinion I just don’t see how they could be based off the website.

    The email address I listed was the generic email address they have on their website, [email protected] in hopes that they would see this post. I don’t work for CAG but I am a local client and have visited their office a few times throughout the years. They have done a great job by me and I know you can’t please everyone but thought I would give my 2 cents on this yesterday while I was browsing the web. Thanks for your reply!

  • Steve Rhode

    The link for the complaint seems to be working just fine for me. It’s in the story.

    The allegation in the complaint is what the site said. If the attorneys that filed the complaint misrepresented the issues then there are sanction the CAG attorneys can go after.

    And while I spotted one issue that probably could use some correction in the complaint, it did appear the allegations are plausible. Debt settlement companies certainly made similar representations. I don’t know if CAG ever did. It’s not my complaint or allegations.

    I am curious, if you are a client why did you list your email address as coming from @creditalliancegroup.com and I can see where you are posting from.

    If you work with CAG and want to talk about these issues openly that’s fine. There is no need to claim to be a client if you are not.

  • Mike

    Steve,

    I see no place on their website where they are misrepresenting the services being offered. This is a joke of a case if it were to be one. When you click on read the complaint it directs you nowhere? Where is the alleged complaint?

    The scripts from their website state “anything you do other than pay your bills on time each month will effect your credit.” From what I see, Credit Alliance Group’s Website is the most forward and upfront website available in the Debt Settlement industry. I can’t imagine anyone interpreting anything on their site as “hey this will improve my credit score” as the site plainly states that their program is not for you if you can afford to pay your bills on time. At the bottom of their site the CAG Website Disclaimer also states that they do not offer credit repair.

    I have been a client of CAG’s for over 2 years now and not once have they led me to believe my credit would improve while using their program. I would recommend CAG to anyone who cannot afford to pay their bills and is intelligent enough to know that any program other than paying your bills on time each month will effect your credit.

  • Mike

    Steve,

    I see no place on their website where they are misrepresenting the services being offered. This is a joke of a case if it were to be one. When you click on read the complaint it directs you nowhere? Where is the alleged complaint?

    The scripts from their website state “anything you do other than pay your bills on time each month will effect your credit.” From what I see, Credit Alliance Group’s Website is the most forward and upfront website available in the Debt Settlement industry. I can’t imagine anyone interpreting anything on their site as “hey this will improve my credit score” as the site plainly states that their program is not for you if you can afford to pay your bills on time. At the bottom of their site the CAG Website Disclaimer also states that they do not offer credit repair.

    I have been a client of CAG’s for over 2 years now and not once have they led me to believe my credit would improve while using their program. I would recommend CAG to anyone who cannot afford to pay their bills and is intelligent enough to know that any program other than paying your bills on time each month will effect your credit.

    • http://GetOutOfDebt.org Steve Rhode

      The link for the complaint seems to be working just fine for me. It’s in the story.

      The allegation in the complaint is what the site said. If the attorneys that filed the complaint misrepresented the issues then there are sanction the CAG attorneys can go after.

      And while I spotted one issue that probably could use some correction in the complaint, it did appear the allegations are plausible. Debt settlement companies certainly made similar representations. I don’t know if CAG ever did. It’s not my complaint or allegations.

      I am curious, if you are a client why did you list your email address as coming from @creditalliancegroup.com and I can see where you are posting from.

      If you work with CAG and want to talk about these issues openly that’s fine. There is no need to claim to be a client if you are not.

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