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Did My Elderly Mother Just Get Scammed by the Federal Debt Assistance Association – FDAA?

By on March 19, 2018

Question:

Dear Steve,

My 80-year-old mother got into the FDAA program. She had about 10 credit cards that they in turn completely maxed out the credit line and since then none of the credit card issues have been taken care of.

She has been harassed by credit card companies and even been taken to court and now has judgments on her.

I handle all her estate and now I hear that this is a scam and she has been taken advantage of. In the beginning, everything was going well and they were communicating with her at every turn and then all of a sudden, nothing.

Am I to understand that this is never going to be resolved?

Paula

Answer:

Dear Paula,

You can read the past news on FDAA if you click here.

On October 12, 2017, the Consumer Financial Protection Bureau sued the company and said, “The CFPB also alleges that FDAA’s so-called “debt validation” programs violated the law by falsely promising to eliminate consumers’ debts and improve their credit scores in exchange for thousands of dollars in advance fees.”

Since that time none of the people named in the suit; Federal Debt Assistance Association, Financial Document Assistance Administration, Clear Solutions, Robert Pantoulis, David Piccione, and Vincent Piccione have bothered to even defend themselves.

In fact, just a few days ago the court entered a Clerk’s Entry of Default for not providing a defense. – Source

It is no surprise your mother was sued and lost. Any agreement with FDAA did not change her relationship with her creditors.

You might even consider having your mother file bankruptcy if she does not have much in the way of assets. Bankruptcy would end this debacle now.

I would suggest you find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.

READ  Federal Debt Assistance Association - This is Going to Get Real, Fast

As far as getting any justice from the FDAA mess, don’t hold your breath. Even the people behind it appear to have run for cover and vanished along with her money.

The best outcome at this point would be to use this as a learning experience for your mother before she hires any company.

Here are some free guides to help you make sure the company you are thinking of using isn’t a total scam.

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About 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.

One Comment

  1. Paula

    March 19, 2018 at 12:59 pm

    Just answered question about FDAA.

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