Apparently American Financial Service Did Not Get the Memo on Advanced Fees

A tipster (send in your tips here) sent me a link and asked me to look at the website for American Financial Service. The tipster (send in your tips here) said they were still claiming to charge an advanced fee for debt settlement services.

Well sure enough, it does appear that American Financial Services does make the statement about charging an advanced fee for debt settlement services.

What will I pay for your services?
American Financial Service has a 15% fee which is calculated based on the total amount of debt that an individual brings into the debt settlement program. This program requires one or two down payments then small monthly fees paid throughout the first year of the program.

All costs and fees are always fully disclosed and you are required to sign for approval before you commit to our program. – Source

Of course on the same page they also have this graphic.

They also claim to be members of TASC and USOBA. But I was under the impression that both organizations did not permit advanced fees for debt settlement anymore.

The debt calculator page provides the following example of their program compared to others.

It does appear they are saying debt will be paid off within 36 months and that the debt will be reduced but there is no way to tell from the graphic how much their fees are since the cost is inclusive of fees. The claim to be debt free in 36 months seems to be in conflict with the FTC telemarketing sales rules. The 36 month claim backs up their statement in the previous graphic as well. Apparently that is their position.

Another interesting fact is American Financial Services says they are located at 9530 Hageman Road Suite B #296 Bakersfield, CA 93312. – Source The address given by American Financial Service is actually that of UPS Store #4360.

According to public records, AmericanFinancialService.org is registered to:

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Carlos Lopez
World Class Debt Services, Inc.
600 Anton Suite 1900
Costa Mesa, California, 92626

I could not independently verify the address given.

I was able to verify that World Class Debt Services is doing business as American Financial Service. – Source

World Class Debt Services, Inc. appear to belong to the following people. Carlos Lopez, Eric Thompson, Hannah Dixon, Robert Kurhajian, Sarah Blanco.

Carlos Lopez is also the person behind Quality Support Services, LLC in California.

In 2009, Quality Support Services, LLC sued American Debt Relief Services, Inc. In that complaint it said “QSS is one of the premier providers of account management and debt settlement services in the United States.” – Source

Quality Support Services claims to be a member of TASC, USOBA and IAPDA.

The BBB Also lists 2222 Michelson Drive #222-601 Irvine, CA 92612as an address for American Financial Service. – Source. But get this, that address appears to belong to yet another mail drop, Pack N Ship. – Source

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

I’ve given up being surprised how all these things wind up being linked.

Update 2-22-2011

More scoop from yet another tipster (send in your tips here).

According to the tipster (send in your tips here) here is the chain of events.

In 2003, Robert Kurhajian was the owner of World Class Debt Services, doing business as American Financial Service. His partner was Erick Graziano and they were doing business under the Homeland Financial umbrella. In 2005 Kurhajian and Graziano started Quality Support Services and Carlos Lopez De Magana came in as a partner.

Apparently Robert Kurhajian left the enterprises at the end of 2007, due to health reasons. Eric Thompson left prior to 2007 and was not an owner.

Sarah Blanco is reported to be the sister of Carlos Lopez De Magana.

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