DebtXs has a new website. They are apparently moving into new branding as the website says it is now DR Options at 1-800-374-1088, 7668 Warren Parkway, Suite 315, Frisco TX 75034. – Source
They’ve apparently taken on the task of presenting a wider breadth of debt relief options, a course we’ve talked about more would take.
Their new offerings, or those of DR Options, provide guidance for debt management programs, debt settlement programs, DIY, and Bankruptcy.
The DebtXS.com site also can be reached with debtreliefoptions.com. That domain name is listed as being owned by:
Debt Relief Options
555 Republic Drive
Suite 200
Plano, Texas 75074
The site sits on a server that also hosts:
debtreliefoptions.biz
debtreliefoptions.com
debtreliefoptions.info
debtreliefoptions.mobi
debtxs.com
droptions.info
droptions.net
droptions.org
xwarenet.net
So I’d say it may be safe in assuming that the DebtXS efforts moving forward are geared towards the Debt Relief Options efforts.
A look at DR Options, LLC shows Ken Talbert is the managing member.
Okay, I don’t want to get too far afield from my original focus here, what the new DR Options site says that left me scratching what little hair I have left.
The DR Options site has this debt relief options chart on it.
I’d love your feedback and insight into the observations I’m going to share with you. Please post your comments below.
But what struck me about the chart was how such smart people with a lot of experience could make some odd claims. Look at my red arrows.
Bankruptcy: “We do the work for you.” Are they setting themselves up for a UPL claim here or claiming to be attorneys in all states?
Debt Management: “Protects your credit score.” Apparently they are not aware of the huge can of Credit Repair Organizations Act problems they just opened with that statement.
Bankruptcy: “Affects your credit score the most!” I assume they were trying to imply the impact was in the most negative way, but that’s just simply not true. Settlement can have a large negative impact as well and some people that file bankruptcy actually see a rise in their score based on their situation.
For clarification on what they were trying to say I turned to their FAQ page. It was the question about the credit score that was most perplexing to me.
What about my credit score?
DRO™’s Debt Reduction Plan may affect your credit score in several ways. Once you successfully complete the Program, credit reporting agencies may report all of your accounts enrolled in the program as “settled” with no outstanding balance, releasing you from all further obligations. Several other factors will also influence your global credit score, making it important to think about the long-term impact of the debt reduction plan and debt help options available to you. In the short term, for example, the debt settlement process may negatively impact your payment history. However, the impact may be negligible if you’ve been late in making recent payments already. Nevertheless, settlement usually has a positive impact on another component that makes up your credit score: the amount you owe. By the time the settlement process ends, clients sometimes see their credit score improve because they now have fewer debts or no outstanding debts at all. Both Debt Settlement and Debt Management usually affect your credit score less than Bankruptcy. – Source
It just seems that the focus of the advice given assumes the solution the consumer will be sold is a debt settlement solution. It downplays the potential impact on credit with settlement and seems to make the case that settlement will negligibly impact credit. It also states that settlement and debt management “usually” impact the credit score less than bankruptcy. What it does not do is mention that delinquent accounts as a result of a settlement process can be negatively reported on the credit report for seven years or that some settlement cases do wind up in litigation and collection calls continue.
My Conclusion
It seems that even though the DR Options website wants to present all the options the FAQ page leaves me with the impression the overall focus is still a settlement solution.
Even the description the site offers about the debt settlement approach makes it seems easy and without consequences.
What do you think about the new DebtXS site. Is it fair and balanced or do you get the impression it is still steering people towards settlement?
What can we learn from the new changes and what advice do you have for them about the statements they are making?
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Ken Talbert owns EFA and Safeguard Recovery. Safeguard is ran by his son James. Safeguard has its offices at EFA. They have access to EFA customers and can see the accounts and if person has money. They buy the debts and collect and settle them. Is this wrong? I use to work there.
Yes, this is wrong. I believe it would also be violating many laws. Steve have we heard anything like this before? This would be a total game changer for EFA if this is true.. I’m doing a little research on this as we speak. Will update accordingly.
UPDATE:
Safeguard Recovery, LLC has a location in Frisco, TX. Active officers include Jeff Carlson, Jeffrey Carlson and Brian King. The company’s line of business includes Investor Security Systems Services.
Category: Investor Security Systems Services Investors, nec, Fire alarm maintenance and monitoring
A.K.A.:
Safeguard Capital, LLC, Safeguard Recovery, LLC;
Phone: (972) 239-1865
Just called and asked “Is this EFA? I need help with my debt.” She said “Yes it is, one moment.” and transferred me to a debt sounselor.
Filings:
Foreign Limited Liability (FL – Active)
Foreign Limited Liability Company (LLC) (TX – Active) Sources:
Dun & Bradstreet last refreshed Thursday, March 10, 2011
Florida Department of State last refreshed Saturday, October 22, 2011
Texas Secretary of State last refreshed Wednesday, March 30, 2011
Brian King and Jeff Carlson have moved on. James Talbert is the lone owner but Ken pretty much runs the show
Guest,
I interpret your comment to read Safeguard Recovery is owned by the same people who own EFA and Safeguard Recovery is in some instances buying the debts of consumers in EFA’s data base (where possible) and then settling the debts with EFA. Is that what you are saying?
I look forward to learning more about this.
No joke! I think we are all interested in hearing more. This could be very, very bad for EFA.
Guest, hopefully you are checking back on this article to see the interest you have sparked. Please give us more details on this!
Guest, hopefully you are checking back on this article to see the interest you have sparked. Please give us more details on this!
I am in the industry and continue to be amazed at how Safeguard Recovery still can look at responsible debt settlement companies database only to be shared and used by EFA to buy debt, prospect for new clients from this list and just try to collect on debt when it is not even placed with this “firm” Those of us in the industry wonder if they are still operating in USA or now in some undisclosed location in Russia
I am in the industry and continue to be amazed at how Safeguard Recovery still can look at responsible debt settlement companies database only to be shared and used by EFA to buy debt, prospect for new clients from this list and just try to collect on debt when it is not even placed with this “firm” Those of us in the industry wonder if they are still operating in USA or now in some undisclosed location in Russia
You only have about a quarter of the structure the debtxs in your chart
“Reduce your debt” – There is NO GUARANTEE that a DS program
will reduce your debt. They make it sound like it’s so simple. Why do regulators
think so many people buy the DS dream? Obviously because it “reduces their debt”…
no risks of being sued. No remarks about effects to the credit.
“We do the work for you” – Really? As
you mentioned, Steve, they may undoubtedly be setting themselves up for a
UPL claim, but look just a little bit below at “Help from
a lawyer” – how ambiguous is this? They
are either a law firm, or they aren’t. (Aren’t) Consequently, does the “help from an attorney”
come with any additional costs to the program? At minimum they should have “additional
costs may apply” – or maybe they are using some type of prepaid service like “legal
club” or other company. Watch out, those don’t constitute as “We do the work
for you.” It’s more like “we have a bunch of ambulance chasers that we negotiated
a monthly payment to, and they will help you file the response if/when you get
sued… probably not much more.” Either way, they are representing that they are
attorneys with the lack of description.
Protect your credit score. Don’t even
get me started.
“Affects your score the most.” As you
have mentioned many times over the years, your site has explained to people
that even just 2 years down the road after a BK discharge one would have been
able to likely rebuild their credit profile to a respectable score and history
by then. I challenge this company to track
the following: I will find a person that has a BK discharge date of tomorrow.
They can track one of tomorrow’s enrollments. In two years let’s compare credit
scores. How deceptive are they being here? You’d think these guys would know
better by now. Their regulatory counsel must like going to court, or maybe
Talbert didn’t think to ask his regulatory counsel to review their sire prior
to publishing it.
Their site says “By the time the settlement process ends,
clients sometimes see their credit score improve because they now have fewer
debts or no outstanding debts at all. Both Debt Settlement and Debt Management
usually affect your credit score less than Bankruptcy.”
Really? By the time the settlement process ends
clients sometimes see an improvement in their score. This is way too misleading
to have written as such. The only thing DS does is continue a past due status
while the negotiations play out. That means that although your total amount of outstanding
debts may decrease over the enrollment period if they successfully negotiate
your accounts, you are still past due on at least one major credit card until
the end, and have been for the “X” years you have been enrolled, therefore likely
reducing your chances of getting any credit extended to you until… who knows
when. So misleading.
It’s not hard to figure out
how to COMPLIANTLY and NOT DECEPTIVELY tell people that ”IF DEBT SETTLEMENT IS RIGHT FOR YOU, YOU
COULD SAVE A LOT OF MONEY. AND HERE ARE THE RISKS ASSOCIATED…” But companies don’t do that. They still
advertise statements that sucker people in and, instantly upon enrollment, turn
the customer into a liability rather than a performing customer by setting too high
of expectations from day 1.
And the last screenshot
you provided us: THEY STILL USE THE 18-36 MONTH statement?? The words “typically, usually, generally” may
be enough to have your materiel legally compliant in some eyes, but this shows
what kind of company they are. When will a company actually step up to the
plate and show consumers the real opportunities and risks of DS? I only know of one company that did that, and
they couldn’t survive because so many other companies were making it sound so easy.
With such an uneven playing field, they went down hard, before they ever
enrolled a single customer.
Consumer Mediation
Services
http://www.ConsumerMediationServices.com