Previously I wrote a post “What Do You Think of Everest Debt Solutions? – Margo“. In that post, a reader sent in a question about a company I had never heard of before, Everest Debt Solutions, a debt settlement company.
If you look at the comments section of that question you will see that someone that claims to be from the legal part of the Everest Debt Solutions company contacted me. Why do I say the legal department, well the email address was legal@ and Steve Sanders who wrote the email said he was the general counsel of EDS.
Thanks to Steve, the more I looked into Everest Debt Solutions, the more irritated I became. And then when I looked up Steve Sanders, the general counsel of EDS, with the Florida Bar Association, there is no lawyer licensed in Florida by that name. There is a Stephanie Sanders.
Okay, so maybe he isn’t a Florida based lawyer. If he comes back and gives me an update which state he is licensed in and I can verify that I’ll post it in the comments section below. But for now, I’m going to put that in the questionable category.
Thanks to John who commented on the previous post I was lead to the BBB listing of Everest Debt Solutions and discovered it is another name for a Florida company called FDN Solutions.
Quite frankly I’m surprised they don’t have an F rating if the BBB has called them out on claiming to be BBB members and using the BBB logo, but they are not members.
Mis-use of BBB Name by FDN Solutions, LLC
The business’s website has various pages that display the BBB logo. The business is not BBB Accredited and our policies prohibit such a reference.
On March 10, 2009, BBB brought to the business’s attention its unauthorized use of the BBB logo on its website, found at the link: www.everestdebtsolutions.com/floridadebtrelief.php
The business currently does not display the BBB logo on that link. However, it has been brought to BBB’s attention that the business is displaying the BBB logo on other website pages, including:
www.everestdebtsolutions.com/illinoisdebtrelief.php
www.everestdebtsolutions.com/minnesotadebtrelief.php
www.everestdebtsolutions.com/pennsylvaniadebtrelief.php
www.everestdebtsolutions.com/kentuckydebtrelief.php
www.everestdebtsolutions.com/tennesseedebtrelief.phpOn June 24, 2009, BBB contacted the business regarding this. The company has failed to remove the BBB Logo from their websites. This company is not a BBB accredited business and they do not have permission to use the BBB Logo.
Source: www.everestdebtsolutions.com/pennsylvaniadebtrelief.php
FDN Solutions lists their business address as 12157 W Linebaugh Ave Pmb 380, Tampa, FL 33626-1732. That happens to actually be a UPS store that has private mail boxes. I called the store and verified that it was the UPS store and that Everest Debt Solutions was box holder 380.
FDN and subsequently EDS appear to be operated by the Daniels’. Timothy Daniels is listed as the senior partner while Debra Daniels and Patrick J Daniels are part of the management team.
Both FDN Solutions and Everest Debt Solutiions list the same toll-free number so I think we can safely assume they are closely related as the BBB says.
Here is where I start to get really concerned. On the FDN website they say they are:
FDN Solutions LLC is one of the largest, most trusted debt settlement companies in America, managing over $800 million in consumer debt. More than 30,000 people continue to trust us to help them achieve financial freedom with the help of our debt settlement program. We work with you to negotiate a reduction in your unsecured debt through our exclusive debt settlement program.
Our size, experience and proven track record can help you accomplish your goals no matter how big or small. When working with us you will have access to unlimited resources and tactics that have helped to settle millions of dollars of consumer debt. Our leverage within the banking community gives our clients the ability to feel confident and secure while working side by side with our settlement teams.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
What I am left wondering is how many people can actually work at the UPS store mailbox center or in that small house listed as an additional business address. Either we are not getting the entire story about these companies or the statements being made on their site are not earnest. On face value it goes way beyond general advertising hyperbole to make such bold statements about size and experience but can’t seem to produce anything to back those statements up.
So if “FDN Solutions LLC is one of the largest, most trusted debt settlement companies in America” and “More than 30,000 people” trust them, where are these Everest Debt Solutions and FDN Solutions people really located?
In light of all the other debt settlement company troubles and issues I’ve written about, there is something really odd going on here. I’m left with two avenues to explore. Either FDN and EDS just really, really suck at presenting information about their company or they are hiding something.
By the way, I called the Attorney General office in Florida to do a bit more research on these companies. I’m still waiting to hear back from that inquiry.
And by the way, I went to The Association of Debt Settlement Companies site and searched for FDN and EDS as members, neither were found.
This all certainly makes you wonder about these companies.
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Very interesting new development. Everest Debt Solutions, FDN Solutions, and Tim Daniels Settle With FTC. See https://getoutofdebt.org//43755/everest-debt-solutions-fdn-solutions-and-tim-daniels-settle-with-ftc
Deb,
Did Everest refund to you the uploaded fees you paid into the them?
I cannot believe that old lie has resurfaced again. I have denied it before and I’ll deny it again. I have not hired, compensated, or induced Deb.
Steve
The comments created above are bogus and false. Deb was hired by Mr Rhodes to create controversy with Everest Debt Solutions. Deb was never a customer of EDS.
Deb,
They can continue to charge you late fees and penalty interest rates as specified in your cardholder agreement.
I would be very hesitant in sending bank statements and account information over simply because you don’t know how that information would be used. It could be used to sue you and attempt to levy those accounts.
On the Chase accounts it is hard to tell if they are being handled by three different companies on behalf of Chase or bought by three different companies that are now collecting on their individual accounts they now own after being sold off by Chase.
It sounds to me that you are prepared to settle these accounts yourself but need some specific guidance and help on how to deal with these few remaining debts. I would suggest you contact debt coach Damon Day for personal help.
My husband and I owed about $60,000 in credit card debt. We hired Everest Debt Solutions (I posted a few things about them on your forum) and ended up “firing” them because I was unhappy with the way they were handling things. Three months later, I have settled several accounts on my own had have about 5 left ($30,00 including accumulated interest). I have really good experiences dealing with the collection companies I have worked with so far-yesterday I hit a couple of roadblocks. The firm handling my Discover card, sent a statement March, 2010 showing a balance of $7366.72, when I spoke to them yesterday, they said my balance was now $8235.10-that’s almost a $1000 in 7 months, Holy Smokes! The other company I spoke with was representing one of my Chase credit cards, I made an offer of half of the current balance, to be made in 3 monthly payments. The representative said that he would submit my offer to Chase, but in the meantime I have to fax him bank statements, pay stubs, a letter telling my story and the amount of debt I currently owe. He also said that he didn’t think they would accept my offer. I haven’t sent him anything-I don’t feel like i should need to send him all of that stuff just to make an offer.
1. How much interest and late fees will I continue to accrue on my accounts? I though that there were new regulations limiting this on credit card accounts, or does that only pertain to active, current accounts?
2. How much information do I have to give these folks-am I obligated to send them all that stuff just to make an offer to pay them?
3. I have 4 Chase cc accounts, they are being handled by 3 different collection companies. I have requested that they be combined with the same company but so far that hasn’t happened-have you ever heard of that? It would make things so much easier to deal with one company instead of 3.
Deb
My husband and I owed about $60,000 in credit card debt. We hired Everest Debt Solutions (I posted a few things about them on your forum) and ended up “firing” them because I was unhappy with the way they were handling things. Three months later, I have settled several accounts on my own had have about 5 left ($30,00 including accumulated interest). I have really good experiences dealing with the collection companies I have worked with so far-yesterday I hit a couple of roadblocks. The firm handling my Discover card, sent a statement March, 2010 showing a balance of $7366.72, when I spoke to them yesterday, they said my balance was now $8235.10-that’s almost a $1000 in 7 months, Holy Smokes! The other company I spoke with was representing one of my Chase credit cards, I made an offer of half of the current balance, to be made in 3 monthly payments. The representative said that he would submit my offer to Chase, but in the meantime I have to fax him bank statements, pay stubs, a letter telling my story and the amount of debt I currently owe. He also said that he didn’t think they would accept my offer. I haven’t sent him anything-I don’t feel like i should need to send him all of that stuff just to make an offer.
1. How much interest and late fees will I continue to accrue on my accounts? I though that there were new regulations limiting this on credit card accounts, or does that only pertain to active, current accounts?
2. How much information do I have to give these folks-am I obligated to send them all that stuff just to make an offer to pay them?
3. I have 4 Chase cc accounts, they are being handled by 3 different collection companies. I have requested that they be combined with the same company but so far that hasn’t happened-have you ever heard of that? It would make things so much easier to deal with one company instead of 3.
Deb
Deb,
They can continue to charge you late fees and penalty interest rates as specified in your cardholder agreement.
I would be very hesitant in sending bank statements and account information over simply because you don’t know how that information would be used. It could be used to sue you and attempt to levy those accounts.
On the Chase accounts it is hard to tell if they are being handled by three different companies on behalf of Chase or bought by three different companies that are now collecting on their individual accounts they now own after being sold off by Chase.
It sounds to me that you are prepared to settle these accounts yourself but need some specific guidance and help on how to deal with these few remaining debts. I would suggest you contact debt coach Damon Day for personal help.
The comments created above are bogus and false. Deb was hired by Mr Rhodes to create controversy with Everest Debt Solutions. Deb was never a customer of EDS.
I cannot believe that old lie has resurfaced again. I have denied it before and I’ll deny it again. I have not hired, compensated, or induced Deb.
Steve
Deb,
Thank you very much for coming back and posting an update. I really appreciate it.
Steve
Three months later, I just wanted to post an update. Global Client Solutions refunded all the money we had remaining in our account with them-no questions asked. I had filed complaints with the Better Business Bureau, the MN and FLA attorney general and the FTC. The FTC and FLA attorney general basically did nothing. The FLA attorney general’s office sent some info on finding a reputable debt settlement company (Gee, thanks. Like I would sign up with someone else!). The MN attorney general pretty much said I was “a day late and a dollar short” because we had signed with Everest prior to the new regulations the State of MN put on debt management companies in this state. They said they tried to contact Everest a number of times but Everest didn’t respond-I haven’t heard anything from them for several weeks. The BBB tried contacting Everest numerous times about my complaint but again, Everest wouldn’t respond. They (the BBB) said that they would note the “non-response” in their records, but there really wasn’t anything else they could do. In the past 3 months, I have been able to settle about half of my accounts (using the money I would have been paying Everest), of all the people I’ve contacted, only one-an attorney/collection office working for Chase-even acknowledged Everest even had contacted them.
I have 5 more accounts to settle, some days it’s very hard dealing with these companies but at least I’m making some headway and not paying Everest to leave me to hang . . . .
Deb M
Three months later, I just wanted to post an update. Global Client Solutions refunded all the money we had remaining in our account with them-no questions asked. I had filed complaints with the Better Business Bureau, the MN and FLA attorney general and the FTC. The FTC and FLA attorney general basically did nothing. The FLA attorney general’s office sent some info on finding a reputable debt settlement company (Gee, thanks. Like I would sign up with someone else!). The MN attorney general pretty much said I was “a day late and a dollar short” because we had signed with Everest prior to the new regulations the State of MN put on debt management companies in this state. They said they tried to contact Everest a number of times but Everest didn’t respond-I haven’t heard anything from them for several weeks. The BBB tried contacting Everest numerous times about my complaint but again, Everest wouldn’t respond. They (the BBB) said that they would note the “non-response” in their records, but there really wasn’t anything else they could do. In the past 3 months, I have been able to settle about half of my accounts (using the money I would have been paying Everest), of all the people I’ve contacted, only one-an attorney/collection office working for Chase-even acknowledged Everest even had contacted them.
I have 5 more accounts to settle, some days it’s very hard dealing with these companies but at least I’m making some headway and not paying Everest to leave me to hang . . . .
Deb M
Deb,
Thank you very much for coming back and posting an update. I really appreciate it.
Steve
Deb,
Did Everest refund to you the uploaded fees you paid into the them?
This “so called Deb” did attempt to call the number that you posted above and left messages twice at the extension (100) that I was forwarded to by the person who answered the phone. These messages we not returned by anyone. I have now severed my ties with EDS because I just can’t justify continuing on with a company who totally ignores my requests for information about how they are handling my affairs. Maybe judgments and garnishments are everyday things for EDS, but in my book, they are to be avoided and are quite nerve wracking. This forum is not the place to conduct this conversation, but it is the only way I have been able to have any contact with EDS management. I am a real person, I am happy to answer questions from anyone regarding my connection with EDS or Steve Rhodes (there actually is no connection with Mr Rhodes except for this thread on this forum). Mr Rhodes has my permission to forward any and all inquiries about this matter to me at the email addy listed when I made this post (if this is not possible, I will be happy to post an email addy here, I would just rather not for privacy issues-there are lots of “kooks” out there). I had great faith in EDS in the beginning but now am just totally frustrated. I would be happy to help clear this up so others don’t have to experience the same level of frustration as I have.
I hope to hear from you, EDS Management or Tim Daniels, the ball in in your court, so to speak.
Deb (a real live EDS customer not connected in anyway with Mr Rhodes)
A Message From Senior Management,
This is a public notice posted by Everest Debt Solutions.
It is our intent to reduce tensions with Mr. Rhode and eliminate wasteful communication that interferes with the daily business of Everest Debt Solutions.
This website is creating a fundamental business issue where as EDS clients swayed by the commentary of Mr. Rhode only to mislead the consumer to using a service from which he profits.
We have asked Mr. Rhode to post all of our commentary not just what he decides. We have asked politely to have Mr. Rhodes steer consumers concerned or voicing a complaint with validity or not to our PR department. Mr Rhode does not comply and is only in business to harm debt settlement companies.
A case in point can be read above. On May 26th 2010 we posted a message to have “Deb” call us directly. This post was deleted and now it appears that EDS did nothing to resolve this issue. Meanwhile receiving no calls from a so called “Deb”.
If you are an EDS client and are concerned about the commentary above please contact Tim Daniels. He can be reached at 1-800-258-4131 ext 100 or by cell phone at 1-800-430-7009. For his privacy as a Managing Member of EDS he has purchased a toll free number pointed to his cell phone so that clients can contact him directly to voice concerns.
Sincerely,
EDS Management
Dear Tim Daniels (AKA anonymous EDS Management),
The comment you allege I did not post is right there in the comment section on May 26th. I did approve all of your responses and attempted to facilitate an orderly resolution to Deb’s complaint by encouraging her to call you. The issue is that Deb says she waited and waited but did not receive a call back.
Deb says she did call and was told no manager was available.
I continue to encourage you to communicate with Debt and resolve any complaint she might have. And I also welcome any feedback Deb has about her experience in resolving this matter.
Steve
Well, I’m still waiting to hear from EDS. I will give them a little more time and then plan on filing complaints with the MN and FLA attorney general and the BBB. I see that they are accredited through an organization called the United States Organization for Bankruptcy Alternatives so I’m checking with them (though I’m not really sure how reputable an organization they are), also, I noted on an earlier post on this thread that Steve recommends filing a complaint with the FTC-is there a more specific weblink to where to file the complaint?
This is unfortunate-all EDS had to do to avoid this was to respond to my requests for information on what they were doing with my accounts . . . .
Thanks!
Deb
Deb,
You can file a complaint with the FTC, here. Everest is not a registered debt settlement company in Minnesota, click here to confirm, and operates in MN in violation of the MN Debt Settlement law so I am sure the Attorney General will be very interested in hearing from you. The MN AG has already sued a bunch of unlicensed debt settlement companies. This press release also contains a link to the complaint form you will need to complete to protect yourself and other MN residents.
It is a shame it has come to this stage since it seems that some good old fashioned customer service from Everest may have addressed your issues.
Steve
Thanks, Steve! I’ll let you know how it all turns out 🙂
4:30 . . .I’m still waiting for someone to return my call 🙂
Deb & Really Mad,
Please contact us at 1-800-258-4131 so that we can address your concerns and work with you to resolve these complaints and settle the debts you asked us to settle for you at the inception of our agreement.
We will update Mr. Rhodes as to the status of your complaints and inform the general public how we respond to complaints via this web portal once we have spoken to you.
Any account rep at EDS can help you.
EDS Management
1-800-258-4131
EDS Management,
I appreciate your prompt response in offering a resolution to the very serious problem that has transpired. The problem is, simply, that my Mother nor I trust your company anymore. This is derived not so much from the opinions entered onto this blog, but by the very FACT that you FRAUDULENTLY listed your company as a “BBB Accredited Business” on your homepage, illegally enticing innocent consumers such as my Mother to enter into business with your company. This is a very big problem in my book. You will be hearing from us soon.
Thanks.
Dear Really Mad,
While we appreciate your willingness to promote the Everest Debt Solutions Reliability Report with the BBB. Everest Debt Solutions has been registered with the BBB for over 4 years. We have serviced thousands of clients only receiving 9 complaints. This would stand to show that the number of customers that complain about our services less than .019%. This figure is a success and shows the quality of the service provided.
Unfortunately we cannot entertain dispute resolution on a blog and this will be our last communication regarding this matter.
Please contact our office at 1-800-258-4131 ext 0 for further help with your complaint.
Thank you,
EDS Management
1-800-258-4131
EDS Management; I am very frustrated with calling your company. No one tells me anything. I sent an email today containing an attached letter from a collection attorney and asking them to please check on paying the account I mentioned above. Someone named Diego called and left a message saying that “this is a courtesy call because you sent an email and please call us back”, when I returned the call a hour later, Diego answered the phone and didn’t have a clue why I was calling. Initially I was very hopeful when I signed on with Everest, but the lack of communication is really bugging me. I don’t really think that calling will resolve anything because the only people I’m allowed to talk to know nothing. I would love to speak to a manager or our negotiator to see what the game plan really is. So far, Everest is the only one coming out on top of this agreement.
Deb
Deb,
Please contact our office today at 1-800-258-4131.
Ask to speak to a Manager.
Thank you,
EDS Management
1-800-258-4131
So I called the number given in the post above and was told that no manager was available (it was ~11am Central time) I left a message at ext 100 (given to me by the person who answered the phone) and left a detailed message. It is now 2:30 and I haven’t heard a word from Everest. I received a new notice for a judgment in the mail yesterday so I guess I’m on my own with this one, just like the last one. Why am I paying Everest $500/month if they won’t even talk to me? I’m a reasonable person, I’ve never called and been unreasonable or unpleasant when I’ve spoken to them-why are they treating me so poorly???
Deb
Hi Steve.
My Mom signed a contract with Everest about a year ago. She lives in Pennsylvania. About a month ago, she became very upset because she’s sent those people tons of money, and they haven’t done pretty much one thing they told her they could do for her. Then I stumbled on this blog. Wow. I couldn’t believe it, and I am PISSED! The primary reason my Mom decided to go with them was because of the BBB Accreditation symbol they were boasting on their website. After my research, obviously they are full of you know what and that is a known fact on the BBB website (which by the way they have an F rating now). My Mom wants to get these fees back she had paid into these scam artists, over $5000 worth. So my question is, if they used false advertising from the get go, before the contract was signed, wouldn’t that void any sort of contract she has with these people? I’m in touch with a lawyer, and he obviously thinks they don’t have a chance, but I’d like to hear if you have any experience with this. Thanks.
I am surprised the lawyer thinks they don’t have a chance at recovery.
Here is what I would suggest. PLEASE let me know how it goes.
1. Call Everest, state your concerns and displeasure and ask for a full refund. Write down the date and person you talked to to use in your letters you may have to write.
2. If no refund, send a written request in writing with a refund by date via certified mail or some other proof of delivery. Advise them if you do not receive a refund you will file a complaint with the BBB, FTC, and state Attorneys General in Florida and Pennsylvania.
3. If you still don’t get your refund, file the complaints.
After doing this, locate a consumer attorney through the National Association of Consumer Advocates at NACA.net.
Thanks for pointing out their BBB rating was updated after they had tried to fight it.
Steve
We will follow your advice.
When I had said “they don’t have a chance”, I meant that toward Everest, not my Mom. Pretty much my lawyer is saying that with all these proven implications against Everest they would be fools to not want to refund all or a fair portion of her money.
I will let you know how it turns out, this is a nightmare!!
Thanks!
I may give this a try as well. It just burns me knowing that I have paid Everest over $5000 and I ended up negotiating my own way out of a garnishment. They worked on a judgment for a month, denied all my requests to speak to a negotiator or a manager-the only update I rec’d was “we’re working on it”. Once I rec’d a notice that the company was going to proceed with a garnishment, I called the creditor myself and they were really nice-settled for about 1/2 the total bill. I’m not sure Everest ever even spoke to them-and I’m sure they would have let the garnishment happen even though I told them I had borrowed the money and was willing to pay it ASAP. During the past 12 mos, Everest has only settled two very small accounts for us-both for around the asking price. If I didn’t have $2000 sitting in my Global account, I would just tell them “we quit!”. I sent them an email today and asked them to settle an account for $2200 which would use up the money in my account so we’ll see how they do. They have called with a few offers to settle accounts for us, but they always want a lot of extra money “now”. They called with 2 offers while we were waiting for them to work on the judgment and they didn’t seem to get it that we were only interested in taking care of the judgment at that time.
Oooh, they make me so mad!!!
Deb (in MN)
Please see our response.
Deb,
Minnesota is what is sometimes referred to as a “hip pocket” state when it comes to civil litigation like unpaid credit card debt.
Having received a summons without the court seal or case number assigned is not unusual in MN. The ever so brilliant bulbs over at EDS having told you to ignore it was the exact wrong thing to do. For all of their unwarranted slamming of Steve in this thread, there appears to be some pretty dim bulbs at their outfit.
Your comment tends to lend to the appearance that they do not know what they are doing. If they don’t know in this instance, what kind of confidence can you, or their other clients have in their ability to deliver in any other meaningful way?
The Bulb
I hope this has taken a turn for the better for Jessica. We also signed on the dotted line with Everest Debt Solutions about a year ago (we also live in MN) and am am thoroughly frustrated with their lack of action. We have paid around $5000 in fees to them and yet we still have a judgement against us. They have supposedly been negotiating with the attorney handling the judgement for the past 3 weeks-and have made absolutely no progress towards settlement. When I call Everest for an update, the people are very uninformed. They seem to have our accounts all mixed up in their notes and are just really unhelpful in general. I have asked to speak to a manager or our “negotiator” and am always told that it’s not possible. Actually, the judgement came to be because of some bad advise the Everest advisor gave me about what to do about a summons notice-they said to ignore it because it didn’t have an official court seal, so I did and ended up with a default judgement. All they have really done is take our money and settle two small accounts for pretty much the amount owed, certainly not the discount they advertised. I really wanted this to work out-I guess what Dear Abby said about “if it sounds too good to be true, it probably is” is really true.
I would like to cancel our agreement with them, but by now all our creditors are really mad and I’m sure they all want their money now-and I can’t afford to pay it all at once. We have considered contacting a bankruptcy attorney to see how we would come out with a chapter 13 but I’m kind of waiting to see how this judgement turns out-if Everest settles it for a fair amount, we might stick with it awhile longer, if they don’t then I think we’re done with them before we pay them anymore. In the meantime, I feel like we’re criminals-unable to keep any money in our checking accounts and waiting for our wages to be garnished . . . .
Steve,
We took photos of our posts for our new blog starting this weekend. The consumers will know the truth about your scam here.
Steve Rhodes please call EDS at 1-800-258-4131.
We know about Myvesta and selling leads to Cambridge.
Lead Scam Steve Rhodes
EDS Management
Dear Continued Anonymous EDS Management,
I’m unclear what the issue is here. What about Myvesta? You can Google my name and Myvesta and find probably tens of thousands of mentions of me as President of Myvesta. We did great work at Myvesta. It was the first debt assistance group to have staff CFPs, staff lawyers to help consumers, professional staff negotiators and mediators, staff psychologist to help people with money issues, the first compulsive spending rehab program, etc. We did amazing things.
As far as selling leads goes I already addressed that, see one of your previous rants for that.
I am stunned that you still can’t get my name right. If you are going to keep slinging mud then at least take two seconds and spell my name correctly, but then again you know my name but hide behind ‘EDS Management’ as a name and never say who you are. Why?
Here is the deal with me calling. You want me to. I’m not going to. We are unable to come to a meeting of the minds over that just as we are unable to come to an agreement on getting you to post a levelheaded response to what was factually wrong in the article you keep commenting about.
Steve
P.S. I didn’t realize when I posted this that it was on a different article than the one all their previous rants had been on. You can see What Do You Think of Everest Debt Solutions? – Margo for the rest of the story in the comments section.
Steve,
I am really nervous after reading all of this. My husband and I are in 33,000 worth of debt. I actually filled out all paper work for EDS and faxed it. They have my signature and bank account. I have decided not to deal with them. I am nervous that they will take some kind of payment from my bank account.
Can they do that?
Charlene,
Will they take some sort of payment? I don’t know. If you are worried about it then I suggest you discuss it with your bank and ask their advice.
Steve
We did set up an appointment with a bankruptcy attorney for this week to see what they have to say about our options. I have seen EDS ad targeted to Minnesota residents just this weekend, so it is still out there.
Jessica,
I finally finished my review of the Everest Debt Solutions agreement. I think you’ll find it potentially enlightening.
Steve
Steve,
Thank you so much for you information! I really appreciate all the time you have given me! My biggest fear through all of this was losing our house… I have always stayed current on our mortgage, but now I have read that if we get a “judgement” against us they may put a lein on our property, could that mean forclosure in the future?
I have my contract and am working on getting that to you.
Jessica
Jessica,
The big issue with the lien is that it creates an obligation that earns interest that is secured against your property. While it may not force the sale of your house, it will continue to grow and grow and erode any equity you might have or build in your property.
You may want to consider meeting with a local bankruptcy attorney and discuss a Chapter 13 bankruptcy that will allow you to keep your house. That would allow you to resolve all your debt issues in one swoop for less that you are paying for debt settlement. You will probably find that your credit score will go up if you file bankruptcy and that you can begin to rebuild your credit now. Additionally, bankruptcy will stop all collection activity and prevent the lien. Bankruptcy is a legal process that gives you very strong rights and protections from your creditors. Debt settlement does not.
You don’t need to meet with a local bankruptcy attorney with the intention of going bankrupt, make an appointment to go in and learn what bankruptcy would mean for you. After that appointment then you can go home, think it over and make a better and more informed decision about what is right for you based on facts and not assumptions or emotions.
Thanks for working to get me your contract. I’m anxious to see the terms and promises that Everest Debt Solutions made in it.
Steve
Yes, Global Client Solutions.
Jessica,
Oh, I thought so. They’ve hit a rough patch lately and are the target of a number of lawsuits. I’ll post more about that tomorrow and I’ll also check to see if EDS is or was licensed in Minnesota as is required.
Steve
Jessica,
Here is the post I just wrote about Global Client Solutions.
Steve
So sorry, I guess I left that part out. We do get a statement every month from the “middle man” bank we do have about 2,000 dollars in that account, which makes me wonder why now that they have 40% and we have had reasonable offers we still haven’t heard anything. But I have also heard that it can be hard to get that money back even though its an account in your name. I’m sure I have the contract in the file cabinet, I need to look over the fine print again. We live in Minnesota.
My husband did the initial phone calls with the company and found out most of the information right away, they were up front with the bad stuff and told him it wasn’t going to repair our credit and that it should be a last resort and that they couldn’t do anything if we got sued by a creditor, but we were looking at a lifetime of payments and still needing the credit cards for groceries so 36 months sounded pretty good. I did lots of checking and never found anything negative on this company, which kind of threw up a red flag for me because I figured when giving a company that much money somewhere someone is bound to be unhappy with the process and would say something.
Jessica
Jessica,
If you can please upload a copy of your contract to me, I’d be most appreciative. You can upload it to me through this link.
The Attorney General in Minnesota feels very strongly about companies that sell certain debt services to consumers in Minnesota. Here is what Lori Swanson, AG of MN said recently.
Who are the middle men. It would not by chance be a Rocky Mountain National Bank or Global Client Solutions, would it?
If you feel the company you are working with has not lived up to its promises or treated you fairly, since you are a Minnesota resident you can file a complaint online here.
How can I assist you further?
Steve
Jessica,
I just spoke to the Minnesota Department of Commerce that licenses debt settlement companies in Minnesota. They stated that neither Everest Debt Solutions or FDN Solutions is licensed to offer debt settlement services to Minnesota residents and if so is operating in Minnesota illegally.
They also asked me to pass along to you that if you wish to file a complaint against GCS all you need to do is send a handwritten letter or typed to:
Department of Commerce
85 7th Place E
Suite 500
St Paul, MN 55101
Steve
Jessica,
By the way, I just stumbled across this EDS ad that is targeted at Minnesota residents even though they are not licensed there. I’m not sure if it is running now, but it was at one time during 2009.
Steve
We are working with EDS. We have been with them for about 10 months, haven’t settled a thing we have probably paid about 5,000 dollars. They keep telling us they have to wait for accounts to go to collectors as they are easier to negotiate with, we have accounts as low as 3,000 and up to 17000. They also said they needed to wait until we had 40% of our lowest account saved before they could call so they would have negotiating power. We have personally gotten some good offers, we were told to send them to EDS so they could counter off or negotiate and we never hear anything back from them.
Jessica,
I don’t want to panic you but you need to know what the reality is in the debt settlement world today. It is most likely that the money you have paid so far has mostly been taken as fees by the debt settlement company. It is common practice for debt settlement companies to front load their fees before any actual work is done.
The Federal Trade Commission and individual states are in the process of passing new guidance and laws that prohibit debt settlement companies from advising people to fall behind on their bills. Why? Because when people do fall behind it opens them to being sued by their creditors, ruins their credit, and starts an avalanche of collection activity.
The other issue with debt settlement today is that unlike bankruptcy which resolves all the debt at one time, not all creditors may participate in settling debt. This can leave people with a patchwork solution, some settle, some sue, some continue to chase.
Do you happen to have a written contract with EDS that you could share with me for me to look at and review? You might also want to contact Everest Debt Solutions and ask for an accounting of all of the money you have paid so far. Also, ask them for a clear statement about their refund policy. I’m concerned that you’ve paid $5,000 to date but have not yet accumulated $1,200 (40% of $3,000) to use to settle the debt. Where did all you money go.
What state do you live in?
Steve
Jessica,
A very trustworthy reporter for a nationally known and respected newspaper is doing some research on all of this as a result of what has come to light, but not specifically about your situation. I wanted to let you know that I gave the reporter your email address so they could contact you privately. You are under no obligation to speak to the reporter but if you decide to share your story, it will be a catalyst to help others.
I’m looking forward to getting your answers to my questions from my last comment.
Steve
What do we do if we have been working with these companies? We will be out the money we have paid them and left with the giant amount of fees and charges that have piled up for the past 10 months with the creditors that haven’t been paid? I never thought it was a great idea to do it, but we had to do something and my husband used this as a last resort to bankrupty!
Jessica,
Can you fill me in on which company you are working with and how much you’ve paid? I just need to better understand the spot you are in now.
Steve
It might interest you to know that these companies also have the website http://www.1800debtsettlement.com/index.html.
I don’t know how it ties into their business system, but there are sure a lot of fronts for being as legit as they say :/
Rachel,
Good for you for discovering and posting your comment.
Steve
Hi Steve,
I was just asked by EDS to post my experiences as after reading your comments I can see that clearly having not used EDS for debt relief services your really reaching into some dangerous territory. Seeing how I personally settled over $62,000 dollars of debt with EDS I am happy to say that I am a satisfied customer. I was treated with dignity and privacy and that is what I wanted. I would recommend EDS to anyone who has credit card debt and in the future should I require financial services again I would use EDS without blinking an eye.
Steve Rhodes I believe you are a scam misleading the public and offering financial advice that is at best years out of date. Steve Rhodes if you are a legitimate person and not a company on a slander campaign call EDS directly and ask to speak to their PR department or better yet ask to speak to an owner of the company. I guarantee that you will be astonished as to how wrong you really are.
Best regards,
Heather D.
Peoria IL
Heather,
Thank you for your concern. Say, who is the actual owner of EDS, and what is their business street address. They have not answered that very simple question yet. Maybe you know and can. Seems so easy.
I see your testimonial is coming from the same IP range as the other testimonials posted over here that are suspect. It is so odd that you happen to appear to live in the same Irvine, CA IP node as the others that have been posting suspect testimonials. So if you live in Peoria, IL, why are you posting out of California?
And if this was actually posted by someone working for Everest Debt Solutions or FDN, come on, seriously? Would you not serve yourself better if you just answered the simple, innocent and obvious questions raised? I can ask them again if it would help.
This posting testimonials approach appears to be nothing more than the same tact that was taken over on this forum when questions were raised. In fact, some of the exact same testimonials were used on my first article about EDS.
Steve