Debt Consolidation Loan

Is Simple Path Financial a Legit Company or a Scam?

Written by Steve Rhode

Question:

Dear Steve,

I’m in a total of $33,000 in debt with credit cards and one loan. I spoke with a person at Simple Path financial. I asked if I could have the contract emailed to review it but the person said that it would be reviewed over the phone with me. I would sign then be able to have a copy sent to me.

Is Simple Path Financial a legit company or a scam?

Adriane

Answer:

Dear Adriane,

I always struggle when someone asks me if a company is a scam. I just don’t know what the word scam means to each person.

I can give you some common sense advice and some tips to check out the company yourself so you can hopefully make an educated decision about what you want to do.

If you feel as if you may be rushed or forced into signing a client agreement before being able to read it, that would concern me. A smart consumer should read and understand what they are signing up for before putting their name on it and making it a legal contract.

It’s not an unreasonable request to want to read the client agreement. If they don’t want to share it with you and you are not comfortable with that position, then maybe they are not the right fit for you.

Simple Path Financial says they are also a loan referral company. They say, “All business, mortgage, and student loan requests submitted through Simple Path Financial, LLC® are funded by a third party.” They also say, “Simple Path Financial, LLC® is a lender and also provides loan referral services.” – Source

They say they operate as Simple Patch Financial and Kuber Financial. You can look at this page for information on their state licenses. I have to applaud them for doing that.

It is a bit odd, from my point of view, that a lender that has invested that much in licensing is operating out of a virtual office. They list their address as 16842 Von Karman Avenue, Suite 200, Irvine, CA 92606. That is the address of the Davinci virtual office at the Von Karman Corporate Center. – Source

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To help readers check out a company you may want to read How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off.

According to the State of California, Simple Path Financial was originally registered as an LLC on August 1, 2016. The organizer of the company is Bradley Smith. – Source

I recognize the name Bradley Smith and it appears it may just be the same Bradley Weston Smith who also runs Rescue One Lending. – Source, Source

A Branden Millstone is listed as the Co-CEO at Simple Path Financial and the Co-CEO at Rescue One Financial.

Rescue One Financial has been known to sell people into debt settlement after not being approved for loans.

At least one person online has made a similar claim about Simple Path Financial.

sbta17 said, “Underwriting has confirmed you are approved and qualified for a non-credit based consolidation option. Commonly referred to as the Federal Trade Commission Compliant Debt Resolution Program, this complies 100% with the strict rules dictated by the Federal Trade Commission (FTC) and is overseen by the American Fair Credit Council (AFCC) for consumer protection and streamlined cooperation with creditors.” – Source

In the FAQ section of their website Simple Path Financial says, “If you do not qualify for a loan, your SPF representative will work with you to find another financial solution. Simple Path Financial, LLC has a debt settlement affiliate, Rescue1 Financial. Our representatives may discuss with you debt settlement options available with Rescue 1 Financial. We will not share your information with Rescue1 Financial without your permission.” – Source

Another commenter on the question posted by sbta17 added, “I found out that Simple Path just represents FDR.” I assume that is Freedom Debt Relief. The bulk of the comments I saw seemed to give the impression the debt settlement solution was more common than an approved loan. – Source

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At the end of your due diligence only you can decide what company you want to work with.

My hope is that my answer can help you to feel confident to go back, ask your questions, and feel comfortable so you can know, to the best of your knowledge, that you’ve made the right company selection for your situation.

I’d love to hear your feedback on if you decide to move forward, if they try to sell you debt relief services, or why you might decide to not take them up on the offer.

Post your feedback below.

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About the author

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.

9 Comments

  • I visited the Simple Path site based on mail I received for debt consolidation. All of my accounts are in good standing with ZERO negative comments on my report and zero late payment. I have about 24,000 in cc debt and another 12 in HELOC, I was looking to consolidate into 1 lower payment a month and have a target to get them paid off, I am looking toward my retirement and did not want to pull from my 401K. After using the code they sent in letter, they had someone call me. He took my information, include SS which makes me very nervous, and said HE would call and email me back in about 45 minutes with rates. About 2 hours later he calls to ask if underwriting had reached out to me, I say no, nor have I received an email. He said, well it can take up to 48 hours. I said NEVERMIND cancel the whole thing. He then says to me “what is your problem with patience?” I respond “excuse me?” He repeats the question and goes on to tell me they are a company and this take time, so what is my problem with patience. I say to him “I am your customer and I don’t really think you should ask me that question” So I tell him cancel everything, they then call again asking what they can do about my student loans. I said, i asked you to cancel EVERYTHING. Don’t contact me again. They may be great, but I don’t appreciate being talked to that way when I am responding to an advert you sent me. When I visited Lending Tree they were able to give me rates right away and did not need my SS to do so.

  • So I was curious about how their “program” worked. I contacted this company and spoke with “bob”. We talked for a few minutes and he said he would contact me in a couple of days after the finished their report. He called me back with the results. Now while my debt is around $20,000, my income is about $4000 a month. This gives me a debt/income ratio of 25%. So “bob” is all panicky telling me that I had a 75% ratio and I need to start this program soon, Further, I specificallty asked him if participation in this program would affect my credit cards. He tells me that while I did not have to list all my cards I wanted in this program, the ones that I did would have their status changed. He said they would be put on a pay only status. I told him that while I was no credit expert, I know that “pay only” is just a cute name for closing the account, and that is never good. Then he tried to assure me that my credit score would suffer only minimal and temporary damage. Everyone knows that this is crap. Long story short, I decided against moving forward with this because it is just another name for a credit councselling program and it will ruin your credit, Try to avoid these people if possible.

  • I just signed up with Freedom Debt Relief through Simple Path. The whole process was very simple. Not everyone can get a $40000 loan to consolidate debt. They transitioned me over to the debt management as a solution for paying off my 11 credit cards and a personal loan. I am saving almost $700 a month and thousands of dollars in interest. This debt management has a different approach. They open an account for you in your name, where an agreed upon amount is deposited each month. After they negotiate a settlement amount with the creditors, they start paying them from your account. The accounts are closed per the agreement and marked closed by the consumer, (NOT noted Debt Management). My problem, I wasn’t late on anything, so I had to take everything off autopay, to start the negotiating process. Everything is explained in detail and in writing. They also have you sign up for legal representation, in case problems arise.
    Life happens, and thankfully I found my solution to my mess!

    • The accounts included in the settlement will be marked delinquent on your credit report and the part of the debt forgiven will be reported as a bad debt on your credit report. In a debt management plan that does not happen.

      I’m pretty curious about what your situation is and if you selected the best path based on the goals you want to achieve. You can compare the pros and cons of each major debt relief approach if you look at my online calculator at https://getoutofdebt.org/get-out-of-debt-calculator

      Keep in mind, the reason a legal protection plan was suggested is so when you are sued for defaulting on your debts you will have some representation. That does not mean you won’t lose and have your wages garnished.

      A settlement approach is best appropriate for people who are already behind, have the cash on hand to settle right now, and/or are prepared for the legal and tax complications that may occur.

      Debt management is good for people who don’t want negative marks on their credit and are willing to repay their debt over time. They also have to have the ability to save for retirement along the way.

      Bankruptcy is best for people who want legal protection, no tax complications, and want to get out of debt in the shortest period of time for the least expensive cost.

      My biggest concern in either a debt management or debt settlement approach is to make sure people understand that it can result in a massive lost retirement savings outcome. You can use my calculator here https://getoutofdebt.org/51244/debt-repayment-calculator-retirement

      Thank you for commenting. Please come back and let us all know how it is working for you.

  • I got the exact same email from them referring me to Rescue One Financial. I don’t want a debt-consolidation company, if I did, I would have applied to them in the 1st place. I need a case infusion, I know how to reduce my debt myself.

  • I contacted Simple Path about their offer for an unsecured loan. I then received multiple calls “to review the results”. I emailed the guy back and asked him “if this is a debt consolidation program I am not interested”.

    I received an email back staying once underwriting completes I should get a call from someone else which I did. Each time they ask to speak with me. No email with rates or option to me is a scam or bait and switch tactic to sell you on something you either don’t want or trying to convince you on whatever else they try to sell you on.

    Every single bank I did loans with unsecured, car loan, credit card, didn’t require to talk to anyone unless it was related to income verification. BUT all Banks tell you that you have been approved for xxx amount and xx% with monthly payments of xx amount. Then they may add that you need to submit pay stubs, ID etc to finalize the loan. That had been with bank of America, DCU, Wells Fargo and countless others.

    So when someone continues to call you and want to speak with you and not share anything. It’s super sketch and I don’t call back because for what.

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