Quick Answer: A Missouri couple filed a lawsuit against DebtBlue LLC alleging the debt settlement company failed to negotiate promised debt settlements despite collecting over $6,000 in monthly payments of $307.92. The lawsuit claims DebtBlue violated consumer protection laws by misrepresenting services and failing to improve credit scores as promised.
Filed: February 21, 2025
Court: United States District Court for the District of Arizona
Plaintiffs: Brenda and Luke Peters
Defendant: DebtBlue, LLC
Allegations at a Glance
Brenda and Luke Peters, a couple from Missouri, have filed a lawsuit against DebtBlue, LLC, a credit repair and debt settlement company, accusing it of misleading debt relief services that left them in a worse financial position than when they started.
According to the complaint, the Peters enrolled in DebtBlue’s program in May 2022, based on promises that the company would negotiate settlements with creditors, improve their credit scores, and help them resolve their outstanding debts at a discount. The couple committed to monthly payments of about $307.92, believing the funds would be used to settle their debts.
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However, the lawsuit claims that DebtBlue failed to deliver:
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- The company misled the plaintiffs into believing their debts were being actively negotiated.
- It failed to settle the debts as promised, despite the couple paying over $6,000 into the program.
- Their credit scores did not improve, contrary to DebtBlue’s assurances.
- The couple later discovered that a creditor never received full payment, forcing them to pay the remaining balance on their own.
Legal Claims
The lawsuit accuses DebtBlue of violating several consumer protection laws, including:
The Credit Repair Organizations Act (CROA) – alleging false representations about credit improvement and charging for services before completion.
The Missouri Credit Services Organizations Act (MCSOA) – claiming deceptive business practices and unauthorized charges.
The Missouri Merchandising Practices Act (MMPA) – alleging fraudulent and misleading conduct.
Breach of Contract & Fiduciary Duty – arguing that DebtBlue failed to act in good faith, mismanaged client funds, and prioritized profits over its customers.
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The Bottom Line
The lawsuit paints a picture of a debt settlement scheme, where consumers looking for financial relief end up worse off. The Peters are seeking actual and punitive damages, along with attorneys’ fees.
Important Note: Lawsuits are legal allegations and may be dismissed, settled, or withdrawn. This summary reflects the claims made in the complaint and does not include a response from the defendant.
If you or someone you know has had a similar experience with a debt settlement company, be cautious and consider seeking legal advice before signing up for any programs.
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
I’m getting ripped off by debt blue as we speak. I’d love to sue them
DebtBlue and Council Law Group have teamed up to continue to defraud people who are in debt:
After agreeing and signing a contract with them, I paid a monthly fee of $461.60 for 4 years. And until July 2025. I was sued for one of these debts.
I forwarded this email to DebtBlue and CLG, but they advised me to sign a contract with another law firm, National Litigation Law Group (NLLG), to help me settle this debt.
After a few days of negotiation, NLLG emailed me back, asking me to pay an additional $850 per month for 12 months for this debt.
I contacted CLG and DebtBlue and they also asked me to pay that additional amount or I would be forced to go to court.
I did not agree because they violated the contract and agreement between me and them. I emailed them and asked to cancel the contract for the card debt they charged me for $850 and wanted to know the details of my debt status, but today they closed my account without my consent. The amount they charged me for almost a year is:
ACS Customer Debit Card: $5077.60.
Bill Payment: $1,714.17.
GTS Fee: $204.20.
ACH Credit/Fees: $279.65.
Performance Fees Earned: $2,879.58.
So the total amount of fees I paid is $3,362.95 and in the past year they paid only one of my credit card debt $1,714.17.
In the end it meant I had to pay almost the original debt from last year and with the interest, penalties and their fees, DebtBlue $CLG took $3,362.95 out of my pocket. Please be aware of these scam debt relief companies.