Quick Answer: Credit Solutions of America settled with Maine over allegations of unfair trade practices involving advance fee debt settlement schemes. Of 561 Maine consumers who paid advance fees up to 15% of enrolled debt, only 6 achieved the promised 40% debt reduction.
Just yesterday I was talking to a debt relief industry insider and saying, “Whatever happened with Credit Solutions of America, you don’t hear about them anymore.”
And here they are right back in the news.
Below you will find the press release published by the State of Maine.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
Attorney General William J. Schneider announced today that Maine reached an agreement with Texas debt settlement company Credit Solutions of America, Inc. (CSA) and its owner Douglas Van Arsdale to settle allegations of unfair trade practices.
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After two days of trial that began July 18th, CSA agreed to enter into a consent judgment to resolve claims that they violated the Maine Unfair Trade Practices Act with an advance fee debt settlement scheme.
Since 2003 CSA provided debt management services to Maine consumers by promising to negotiate with their creditors in order to obtain settlement of their credit card and other unsecured debts. CSA collected advance fees of up to 15% of the total enrolled debt to be negotiated. The company claimed that it could eliminate 40% to 60% of a consumer’s debts.
In most cases CSA held consumers responsible for paying the enrollment fee, regardless of whether all of the enrolled debt was settled. Of the 561 Maine consumers who enrolled with CSA and paid its advance fees, only 6 settled their debts at 40% of the total debt owed.
“Maine consumers in financial distress are particularly vulnerable to deceptive marketing of debt relief services,” said Attorney General Schneider. “Despite CSA’s claims that consumers who enrolled in their program would be debt free in 36 months, the truth is that debt relief is not a quick fix.”
According to the consent judgment, CSA and Van Arsdale agreed that they will not accept payment in advance of providing services and will not enter enrollment contracts with new Maine consumers. In addition, CSA will pay $150,000 for the costs of investigation and litigation related to the resolution of these claims.
CSA will be permitted to continue to provide services to existing Maine customers in compliance with state law. Debt management companies are required to be licensed and bonded through the Maine Bureau of Consumer Credit Protection. These companies must offer an approved consumer education program and ensure that their debt management counselors are properly certified.
“More than 98% of Maine consumers who dealt with this company did not get the promised results,” said Will Lund, Superintendent of the Bureau of Consumer Credit Protection. “Consumers who do their ‘due diligence’ before committing money, and who check to see if a company holds a valid license, can save themselves a lot of grief.” – Source
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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.
lmao..know doug! he works for uber now, he picked me up from work one night. didn’t know he was involved in illegal dealings, read him and his company were sued for around $200 million dollars for false advertising, not contacting creditors etc. Have to be watchful of who you connect with,
lmao..know doug! he works for uber now, he picked me up from work one night. didn’t know he was involved in illegal dealings, read him and his company were sued for around $200 million dollars for false advertising, not contacting creditors etc. He said he worked in banking and real estate, and that he was in roofing now. lmfao, we hung out a few times, he was real cool. he stays in east dallas now, all of a sudden, he just went ghost on me it’s been like 5 or 6 months since I saw or spoke to him. smh…sign of the times. have to be watchful of who you connect with,
I guess all we can hope for is Doug learned a big life lesson from all of that, he found something new that makes him happy, and he’s found a new path in life.