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Reader Wants to Know How Consumer Debt Help Association Charges Enrollment Fee for Debt Negotiation

A reader contacted me and wanted to know how a group called Consumer Debt Help Association can charge an enrollment fee of $499 for debt negotiation / debt settlement help. Excellent question.

I could not find a contact form or email address to reach out to them to answer the question. If anyone happens to know someone over there at Consumer Debt Help Association, let them know about this post.

Here is what they say on their site that caught the attention:

Debt Settlement companies charge a fee based on a percentage of your unsecured debt total, not per performance of each account; usually this fee is 12% – 20%……give an example.

Our Debt Negotiation program only charges a one time flat enrollment fee and then we get paid once we have performed (settled an account) for you; we only charge $499.00 at enrollment and truly earn the rest our fee when we do the work….Pay per Performance!Source

I don’t have a plausible answer how this approach does not run afoul of the FTC Telemarketing Sales Rules that prohibit advance fees for debt settlement services. Am I missing something?

The slogan repeated on the site is “No Results, No Fees…It’s Guaranteed” but isn’t charging $499 to enroll a fee?

Thinking their “debt negotiation” approach was somewhat different than debt settlement I dug a bit deeper in the site. Nope, it appears it is debt settlement.

Here is how they describe how it works:

Your creditors and unsecured debt collection firms will be asked to communicate with our office directly to discuss your debt settlement options. This allows for some relief from the stress that you may have been experiencing in regard to your calls or communications. Your creditors are advised of our involvement based on the uniqueness of each account and based on the timing and status of the account(s).

After successful negotiations with your creditors we obtain letters from them which outline the exact specifics of the settlements in writing. Once we receive each letter from each creditor you will elect to accept or reject each and every offer and then pay the agreed upon settlement amount to your creditor and our performance. – Source

More details are given on how the program works:

  1. Fee is not based on a % of Debt Total – take this line out
  2. No Monthly Fee Payments
  3. No Home Required
  4. No Credit Check
  5. Debt Free in 12-36 months – Source

More effective than any other Debt Negotiation/Settlement Company.

Where is the Loophole?

If CDHA has found a loophole to the TSR, what is it? I’m sure other companies would love to discover what it is and begin charging an enrollment fee of $499 as well.

Seriously, what am I missing here?

Consumer Debt Help Association Info

Just as a bit of background.

Consumer Debt Help Association
1300 NW 17th Avenue
Suite 140
Delray Beach, FL 33445


Consumer Debt Help Association is a Florida LLC formed in 2010. The current manager of the LLC is Timothy Cerruti. – Source

The company had a previous name, CDH & Associates. The company was voluntarily dissolved on December 1, 2010. The reason given was, “One partner (Amjad Hyadin) was removed from the company and we opened a new fresh LLC with no connection to him. The new company is Consumer Debt Help Association, LLC.” – Source. That’s quite a statement. There’s got to be a story behind that and a lesson learned.


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About Steve Rhode

Steve Rhode
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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