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Consumer Assistance Project Agreement for Student Loan Services – Review

Yesterday I had a consumer complaint and a story about Consumer Assistance Project, a company claiming to offer student loan elimination services.

After writing my story I received a copy of a consumer agreement that was sent to them by Consumer Assistance Project.

What follows is a plain language review of what the agreement says. And this one is a doozie.

Page 1

Screen Shot 2013-09-10 at 11.14.36 AM

At the very top they mention again they are a non-profit 501(c) organization. But which kind? They fail to identify themselves as a 501(c)3 and as shown yesterday, a search of the IRS website for them could not find a recognized charity.

I don’t have a clue what “who will be providing CAP Member, shall be referred to as CAP
Member service provider” actually is supposed to mean.

Consumer Assistance Project Website

Consumer Assistance Project Website

The Consumer Assistance Project website is focused on student loan services. Ironically, after our article yesterday the Consumer Assistance went offline. Maybe they are just having server problems.

But while the Consumer Assistance Project website was all focused on student loan issues, the agreement says it is for, “the purpose of providing legal and financial Consumer right
resources to improve overall legal & financial status of At-Risk Consumer or At-Risk Taxpayers.” It doesn’t even mention student loans at all.

Probably my favorite line on the first page has to be this one. “The undersigned understands that CAP’s legal and Financial Participants professionals and or In-House Counsel do not provide legal advice. CAP’s Participants may assist CAP’s Member with financial & legal matters.” So the lawyers don’t provide advice while they are assisting you with legal matters? Can anyone figure that out? If so, post it in the comments below.

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If you enroll in the program and get sued, you will have to pay your own legal fees.

There are no guarantees and no refunds of any kind.

Page 2

Screen Shot 2013-09-10 at 11.46.24 AM

This poor consumer is being charged $5,698 for the Consumer Assistance Project services and what do you get for that money.

Investigation of student loan accuracy (???)
Forth effort to reduce or eliminate student loan (What does that even mean?)
Application to government programs (Which are free to consumers.)
Requests of records and data (Which are free to consumers.)
Twenty minutes a month with a lawyer and CPA (What is that going to accomplish?)
2,500 customizable legal forms (Now they are just padding the services.)
Credit repair.
Seven ebooks that provide financial training. (Now they must be just joking.)

My Opinion

Just on a value for money scale this agreement is a pure utter joke in my opinion. It does not provide the consumer with something they can’t get themselves and it provides seemingly no real benefit for the money paid.

But that being said, if you want to pay $5,700 for seven ebooks that are probably free, don’t let me stop you.

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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.
  • gsip

    I signed up with CAP in November and my “donations” started in December. I have literally been trying for 2 years to find some relief with my Sallie Mae Private Student Loans and this is the first company that actually showed any sign of hope of maybe being able help out. They do offer a guarantee and the monthly payments are considered “donations” that can be written off on your taxes… seems like a win? My biggest issue is making payments to them every month and not making my student loan payments because I can only afford to do one. I’m not sure how long the process takes, but if they do what they say they can, then I’m all in. I hope they are not like other companies and I am looking forward to a positive outcome, I will keep you posted.

    • Claudia

      Hi all, i just found out through the school that I am planning to attend for the longest, they gave a call to my main lender sallie mae and now ecmc and they never received the payments at all, and i was never told that i was paying it was to pay them to render law calls every month this company lied to me and made me waste a long time and now i have 2 months to have everything ready in order to go back to school and get a degree for sure. Be careful students!’m

  • Raphael Mastro

    What i was told was this…

    Just like the guy who was on TV saying the govt can give you free money with the book he sells by applying for govt funding programs that this was the same idea. They take ur student loan info and submit it to these programs and hopefully through these programs they have eliminated or drastically reduced your loan debt. The “donation” u pay is how they pay for their legal teams to file all your paper work through the agencies, so they are doing the paper work for you and the donation pays for it.

    Bc i asked him ok why would your company cough up 30 grand for me and then me only owe you 10% of that, sounds too good to be true…Then he explained the above to me. So my biggest problem with this is that they won’t send me a blank contract to review, they want me to have it filled out first through them and then they will send it to me via email for me to review and sign, also if you don’t sign it within 24 hours the application becomes null and void. Please comment and give me ur thoughts bc I’m clueless as what to do next bc my private loans are in default and they wanna sue me to get the money, i just don’t wanna have a judgement against me.

  • K Flori

    Eric, please report back with good news if you actually start to see your balance going down with your loan servicer. I don’t have much faith in 100% guarantees as it doesn’t help if they don’t pay up. This could be the exception, though, so best of luck to you!

  • Eric

    After checking your website’s review of this company, several weeks ago, I decided to give them a call and from the tone of the call it felt like I was being sold a used car and being pushed into joining.

    The poor guy or salesman called himself a volunteer and he was doing his hours for the week… I found it humorous but still allowed him to do his “job” in pitching me the service that they do.

    Long story short; the quote given to me was $250 upfront and 187.5 for 12 months. My actual debt is a little over 12K and so they claimed I’ll only end up paying $2,500 for their services and that’s it – I’m done. Sounds too damn good to be true, I’ve had this debt for over 5 years and based on their claiming I’ll be out of it in 12 mo.

    Because it was confirmed to me that there is a 100% refund based on my agreement which was electronically signed — I could always get my money back if all else fails – per the volunteer/sales rep recorded confirmation.

    Fingers crossed.

    • http://GetOutOfDebt.org/ Steve Rhode

      Is there a reason you are publishing similar positive comments under different names on this thread? It’s not normal for people to do unless they are trying to game the system.

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