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Is the Government Going to Freeze GCS and NoteWorld Client Accounts?

“Dear Steve,

I work for a small Debt Settlement Firm in the midwest

Is the Government going to Freeze GCS and Noteworld Client Accounts?

Given GCS’s problems with the FDIC (and having to switch banks) and Senator McCaskill pledging to subpoena GCS and Noteworld before the Senate Banking Cmte, should I worry that our client accounts are going to be frozen?

Also, aren’t their class action lawsuits as well?

Mike”

Dear Mike,

There are several class action suits ongoing against Global Client Solutions and NoteWorld. If you do a search of the GetOutOfDebt.org site you will find mention of them.

I am not aware of any case in which the freezing of accounts is imminent. I think the issues those companies have to face surround the screening of companies they work with to make sure the underlying debt settlement companies were/are operating legally. If the underlying company was/is not operating legally then one theory I’ve read sucks those companies in as co-consirators that have enabled consumers to be harmed and expose the FDIC related banks to unnecessary risk.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

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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.

1 Comment

  • Steve,

    I contracted with Lloyd Ward & Associates in September, 2010 to do the obvious, get out of debt”.  Unfortunately, 2 lawsuits later, a judgment rendered against me and my wages being garnished, I have had to result in filing bankrucpty to stop the bleeding.  I came across your website after trying to figure out any information I could about this company.  I followed the steps outlined in your “How to Get a Refund” portion of the website.  I wrote a demand letter to them on May 2, 2012, giving them until today, May 24, 2012 to respond or I will file the complaints mentioned.  I have heard nothing from them except a phone call the day they received my complaint indicating they needed a “verbal statement” that I was discontinuing their services and requested a refund.  I advised the representative to read my demand because it was very clear.

    I wish I would have done this research prior to contracting with this company because I fear I may never recoup the $5K+ dollars I have providing to this company.  They have made a bad situation worse!  I cannot say it more clear to anyone reading these posts – stay far away from debt settlement companies.  They offer nothing to you but misery all in an attempt to advertise they’re helping you.

    I guess my next steps are to file the complaints as you suggest.

    D. Simon 

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