Debt Validation

Am I Being Scammed by Coast Processing with Litigation Practice Group?

Written by Steve Rhode


Dear Steve,

I have been making payments to Coast Processing with Litigation Practice Group in San Clemente, CA 74090. Is this a legit company?

I am experiencing some questionable situations with their inability to answer many questions. Customer service sucks. I email questions, they respond by telling me They call me, but unfortunately, I MISSED THEIR CALL, which is not true.

Please help me understand what is going on! I pay them $380.00 per month and don’t see anything that shows my debts will be negotiated and /or paid. They talked about validation but didn’t keep me updated as far as the progress of ANYTHING.

Am I being scammed? My husband and I are both on social security and have been affected by Covid 19. I’m unable to speak or call to talk to the original “salesperson.”



Dear Jacquelyn,

I’m so sorry you have to deal with this situation. Feeling as if you are on the receiving end of bad customer service is infuriating.

Your situation, as described, makes me believe there are two issues here.

The first is the level of customer service you have experienced. I think anyone would get frustrated by coming away with the impression that any company you hire is not giving you the impression they are putting you first.

The second issue is if there are not better strategies to dealing with your debt since you are both on Social Security.

If you are like most people on Social Security, money is tight, and there is never enough to go around. Suppose you have limited assets your income may be protected from creditors if they were to sue you. You might be what is called judgment proof.

If the debts are not affordable, one option might be to stop paying the debts. But I would suggest you talk to the nonprofit law firm HELPS to discuss your specific situation.

READ  Should I Go With Litigation Practice Group?

The approach of ignoring the debts would save you $380 a month, but you would still have to deal with potential collection calls and efforts.

Another alternative would be to consider filing for a Chapter 7 bankruptcy. For less than $2,000 in total fees, your debt could be legally eliminated in about 90 days and tax-free.

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.

As far as the groups being legit or a scam, I always struggle with those labels. At the end of the day, what matters most is if you have been given the right advice for your situation. And that we won’t know without you getting a second or third opinion.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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.


  • I used Coast Processing myself. I paid over $4500 in monthly payments for 18 months. My payments are over. It’s been 2 years since I started this. They said that I would have a credit score of 720 by the end of the 18 months. My credit score has done nothing but bottom out. It was 660 when I started. It’s not even 600 now. Any advise would be helpful. 2 of my accounts were sent to collections and their still there. What can I do to better my situation.

    • The irony is that if you had filed bankruptcy it would have cost about $2,000 and your debt would have been discharged in about 100 days. Your credit would already be well on the mend.

      At this point, you still have the debt and it appears it is still not resolved. So what is it you want to do? Do you want to try to work out your dispute with the debt relief company or eliminate your debt?

  • Coast Debt Processing does explain what will happen and it’s not cheap or easy.
    It’s a lengthy process and you can expect them to give you that answer.
    They got everything charged off and my credit score keeps going up.
    They were really kind when the Us treasury lost my social security check and stimulus checks.
    They didn’t even ask for a payment for months!
    Krista Carvajal

      • Steve – I’ve talked to someone who hired this company and the company charged them monthly for years, while sending FDCPA letters such as FDCPA Cease and Desist and FDCPA Validation to the original lenders – who are not required to comply with them since they are not third party debt collectors. This person’s credit is shot and they have seen no results, after making thousands in payments. Sounds similar to your poster.

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