Safetrust Financial Announces Bankruptcy and Ditches Affiliates

An awesome tipster (send in your tips here) just sent in the following email they received from Safetrust Financial.

Kind of ironic that a debt settlement company goes bankrupt to keep servicing the accounts of people who wanted to avoid bankruptcy. But then uses bankruptcy as a way to shed the liabilities of the affiliates that sold consumers the Safetrust product to avoid bankruptcy. It’s a twisted convoluted circle.

The Safetrust affiliates look like they really got screwed in this deal. “Thanks for the clients we will continue to service and earn fees from but you, we don’t need any more.”

So let me take a stab at reading between the lines here.

The following message comes with much regret to us at Safetrust Financial. In an effort to protect our customers, [not our affiliates] Safetrust Financial will be seeking bankruptcy [oh the irony] to ensure that we will remain in a position to be able to fulfill our obligations of servicing active, existing accounts, [not including the affiliates]. In the event that you have any questions moving forward, please direct all to our bankruptcy counsel [who is?]. We expect that you will be contacted by them relating to details on how this process will proceed in approximately 45 days [because we are not filing just yet but sometime in the next couple of months]. If you must communicate directly with Safetrust [but don’t], please do so only in writing and direct all correspondence to:
Safetrust Financial
P.O. Box 1438
Fort Lauderdale, FL 33302
Until any notice is provided to us on the contrary from our counsel, or as required by law, all of our affiliates will continue to receive their residual deposits from active accounts. This may change at the time of filing bankruptcy, or the court may order otherwise. [count on it changing]
We would like to say that it has been our greatest pleasure working with you all over the past years; we hope that you understand that these legal avenues are being taken [that will screw you over and lead to your bankruptcy] due to critical financial conditions, and that we are making every possible effort to continuing servicing clients, but are otherwise ceasing all other operations [get lost].