A reader brought a debt relief company to my attention, Creative Debt Solutions at creativedebtsolutions.org. Beware and watch out. I took a look at their site and I was very unhappy to find some of the previously discredited tactics being promoted on their site.
Just when you thought stupid tricks like novation and unilateral terms on payments was finally tossed in the rubbish bin where it belong, the cat drags them out again.
On top of that, the company appears to be charging a one-time fee per account. Let’s just hope that fee isn’t charged until the debt has been eliminated otherwise I know of some regulators that would like to talk to them.
The company claims their process has never been challenged. Well if it hadn’t in the past I’m challenging it now. I challenge you to share with us your performance statistics. Oh, did you not mean that kind of challenged?
Creative Debt Solutions says the can send a final payment check of $25 with special terms on it and the debt has to be eliminated, creditors must respond to 3rd path witness/special power of attorney, no more harassing phone calls, and no responding to creditors.
I’m not even sure where to begin warning consumers to run away from Creative Debt Solutions and to get a second opinion.
Let’s just look at the novation claims. I invite you to read past articles on the novation scam and read about those sued, arrested or headed to jail as a result of this failed approach.
Remember CCDN and all the lawsuits, complaints and disbarment proceeding that resulted from that debt relief company?
Well here is a similar approach again unleashed on unsuspecting consumers. The Creative Debt Solutions site claims:
- No money is actually being lent and it’s all a truck.
- There is never a loan from a lending institution.
- The debt can be satisfied with the use of UCC instruments.
- Unilaterally changing the terms of the loan agreement can eliminate debt.
- Unilaterally changing loan terms when lender cashes nominal amount final payment check.
- Cease communications letter. – Source
Just to show you how ridiculous their claims are let’s just look at this one section:
Notice to Cease Telephonic Communications: This is an important issue to address. Many people do not know that they have a simple right to tell a debt collector or anyone for that matter to cease telephonic communication. This right is protected under the Federal Fair Debt Collections Practices Act “FDCPA” and in some states there exists a state version of the Fair Debt Collection Practices Act where you may find similar rights. Pleas note when you start this process it is almost a guarantee that the lending institutions electronic corporate machinery will not observe this process immediately. Most likely after receipt of your check and documentation the check will be processed as a receivable, your account credited and the remaining documentation will be forwarded to the legal or billing dispute department. However after thirty days or so past your billing statements due date your creditors automated computer system will flag your account as in default thus resulting in phone calls from the lending institutions collections department. – Source
There are just so many statements they make here that are just flat out wrong.
A cease communication letter has no power or authority over the original creditor, only third parties. And the inappropriate use of the letter can actually result in pushing the creditor to sue the consumer.
They claim the lending institution will almost certainly not observe this letter or process. Yea, because it doesn’t apply to them.
And they even say that by using their process it will cause your account to go into default and you’ll wind up in collections.
More Creative Debt Solutions Silliness
The company claims they can make your debt go away with a final payment trick.
Final Payment: With this issue alone the game is over for the alleged lendor. The moment the alleged lendor cashes your check for $25.00 and fail to respond to this document with affirmative defenses, asan operation of law they have waived their position as creditor and the debt is terminated. – Source
I don’t know what kind of funny stuff they are smoking but no creditor is bound to any terms unilaterally submitted. They can freely cash the check and not be bound by the terms. This was a failed CCDN trick as well. As stated in their racketeering lawsuit:
“…explaining the following scheme, commonly known as “assignment” or “novation,”to trick creditors into giving up their rights to timely and full repayment of principal and interest, which will not work because most creditors write provisions in their credit agreements forbidding such chicanery, and also this approach would count as an unfair and deceptive trade practice and no court would approve of it, and in all cases provides no debt relief and leaves its victims far worse off than before (and also tells Plaintiffs not to talk to debt collectors, contrary to Defendants’instructions elsewhere to provoke and endure as much debt collection abuse as possible to rack up damages)” – Source
So Who is Creative Debt Solutions?
The reality is they provide no public information on their website about what states they are registered to do business ink where they are located, who they are, or even a telephone number. They appear to be some fly-by-night outfit that is trying to sell a load of hogwash on anyone not informed enough to fall for it.
They even hid their domain ownership records.
So how legitimate is a company that hides all the information about them? What do they have to hide?
Creative Debt Solutions Online
Creative Debt Solutions makes what appear to be unsubstantiated claims in their advertising.
Here is an example of one such ad.
You will notice the ad provide no idea where the company is located or even what their telephone number is. They also make the claim “Our program goes unchallenged by debt collectors” which appears to be an unsupported statement.
In this ad they claim to be able to eliminate unsecured debt in 90 days. At least they publish an email address this time of email@example.com.
For the most part the location of the company and/or the people behind it are a mystery, and that’s scary.
If we assume the company might be located in Idaho since their ads are posted under Idaho, then we’d be wrong. The State of Idaho does not have a company with that name registered and authorized to do business in the state.
If you run into these folks, keep on walking and find yourself a better solution.