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American Debt Services, Quality Support Services, Global Client Solutions in California Class Action

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On June 29, 2011 a class action case in California was filed against American Debt Services, Quality Support Services, Global Client Solutions, and Rocky Mountain Bank & Trust.

The case alleges a now common scheme of evading state state laws regarding debt adjusters or proraters.

The complaint says that California consumers were induced by promises provided by American Debt Services and Quality Support Services while Rocky Mountain Bank & Trust and Global Client Solutions assisted.

In the specific instance mentioned in the case, the consumer had $2,200 distributed to her creditors but was collectively charged a fee of $3,937.21.

The suit states that the backend servicing company “conspired with the other Defendants to make this scheme work, by making misrepresentations to consumers about the services, steering consumers to Global Client Solutions and Rocky Mountain Bank & Trust.” It is alleged consumers were mislead when they were told:

  • Experienced negotiators will settle consumers’ debts for pennies on the dollar;
  • The process will not harm consumers’ credit except for a “short term negative effect”;
  • In the long-term the consumers’ credit should actually be improved as a result of the services;
  • It is atypical for consumers’ who stop making payments to be sued by their creditors;
  • If a creditor does bring litigation, “Client Services Specialists have the training available to assist you.”; – Source

    I would expect we will see another year or so of these “all in” lawsuits that combine the front-end marketer, backend servicer and escrow company. For now this is just another of a string of cases that go after all the players in the deal.

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    For example, as of today, Global Client Solutions has the following cases open in Federal court.

    Global Client Solutions LLC (dft) waedce 2:2009-cv-00246 370 08/07/2009
    Global Client Solutions, LLC (dft) candce 3:2009-cv-03156 480 07/13/2009

    Global Client Solutions, LLC (dft) kywdce 3:2010-cv-00322 890 05/05/2010
    Global Client Solutions, LLC (dft) ohndce 1:2010-cv-01587 190 07/16/2010
    Global Client Solutions, LLC (dft) gasdce 4:2010-cv-00262 190 11/02/2010

    Global Client Solutions, LLC (dft) ksdce 6:2011-cv-01050 360 02/18/2011
    Global Client Solutions LLC (dft) njdce 1:2011-cv-01219 370 03/04/2011
    Global Client Solutions, LLC (dft) ordce 3:2011-cv-00430 480 04/05/2011
    Global Client Solutions, LLC (dft) miwdce 1:2011-cv-00471 190 05/06/2011
    Global Client Solutions LLC (dft) cacdce 8:2011-cv-00876 190 06/10/2011
    Global Client Solutions, LLC (dft) ohndce 1:2011-cv-01266 480 06/17/2011
    Global Client Solutions, LLC (dft) candce 5:2011-cv-03228 890 06/29/2011

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    This case was filed by:

    Tavy Dumont, Esq.
    Campbell, California
    408-866-4460
    tavy.dumont@dumontlaw.com


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    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.
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