A reader forwarded me a client agreement by a company called Pure Solutions, Inc. The company says it is located at 76 Cranbrook Rd, Suite 249, Cockeysville, MD 21030.
The consumer was being charged around $14,000 for the company to send out less than five debt validation letters.
A few minutes of looking around and reading the client agreement left me scratching my head. I’d love to hear from you in the comments below if you have any observations as well.
I first went to the State of Maryland where the company says they are located. The State says the company was dissolved in 2014.
The BBB says a company named Pure Solutions, LLC is located at the same street address. No LLC by that name is registered in Maryland. The BBB reports the company website is yourpuresolution.com. – Source
The Pure Solutions website shows the company to be located on Cranbrook Rd and also lists the address as 2254 Moore Street, Suite 2014, San Diego, CA 92110.
That BBB listing conflicts with the BBB logo status on the top of the Pure Solutions website that says the company is accredited. According to the BBB their accreditation was revoked on September 16, 2015. – Source
The BBB provides the following information: “On 9/16/2015 this business’s accreditation in the BBB was revoked by the BBB’s Board of Directors due to its failure to adhere to the BBB requirement that Accredited Businesses meet and abide by the following standards: 6A. Promptly respond to all complaints forwarded by BBB by: Resolving the complaint directly with the complainant and notifying BBB, or Providing BBB with a response that BBB determines: is professional, addresses all of the issues raised by the complainant, includes appropriate evidence and documents supporting the business’ position, and explains why any relief sought by the complainant cannot or should not be granted. This business is not BBB accredited.”
The BBB says the owner of the company is Brian Mir. The State of California does not have an active registration for Pure Solutions, Inc. that I could find.
According to the Pure Solutions website they describe themselves by saying, “Pure Solutions, a document preperation company, delivers a fusion of solutions that encompasses consumer protection document challenges throughout the United States. Pure Solutions was developed from the viewpoint of the consumer, focusing on compliance, customer support, and adapting to industry changes.” – Source
While the company lists a wide range of other potential services they offer, the focus seems to be on this document preparation challenge. I mean how are you going to challenge your own application for citizenship or a green card?
So let’s take a look at the client agreement.
This page says the company will be performing “Validation Services” which appear to include the preparation of debt validation letters and the receipt of replies from creditors.
But debt validation letters that are available for free online from a wide variety of places including the Consumer Financial Protection Bureau.
This page says the refund policy is a refund is only available if the accounts are fully verified by the collector. But doesn’t that seem a little backwards? A refund is available only if everyone does what they are supposed to do?
This page also mentions a company called ACE Business Solutions as a payment collector but I could not find any additional information regarding the identity of the company in the agreement.
The fee for the sending of the validation letters was around $13,000.
Ironically on this page the company requires the consumer to waive any claims they may have against Pure Solutions for violations of the Fair Credit Billing Act, Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.
On this page Pure Solutions says they provide no legal representation or debt relief services. So for around $13,000 the consumer gets less than five debt validation letters sent out? The agreement says in bold words, “This Agreement is not for debt relief services, and no debt negotiation, settlement or management services are provided by Pure Solutions to Client.”
Then the company appears to ask the consumer to waive their rights under the Telephone Consumer Protection Act.
Finally, we see a payment schedule for services that begins on day 1.
I would love for you to click on the client agreement pages above and read the agreement to make sure I described the services they were offering, correctly.
I’ll also send an email to the company and asked them to review this posting and notify me of any errors they see.
Interesting Side Note: Clearing Solutions
Another company named Clearing Solutions, Inc appears to offer a very similar set of services and is using a client agreement that has some sections that appear very similar. Clearing Solutions says they are located at 1810 J York Rd, #382, Lutherville, MD 21093. The BBB has a listing for a company called Clearing Solutions, LLC with an F rating and consumer alerts. The alerts says, “In March 2015, BBB contacted the business regarding a pattern of complaints filed with our organization. At the time, the business representatives indicated that the business was in the process of transitioning their ownership and attributed the pattern of complaints to these changes in the company.
Over the course of the next few months, however, the pattern of complaints continued and the overall number of complaints filed increased. In September 2015, BBB contacted the business and requested a response to the pattern of complaints.
Specifically, BBB consumer complaints allege:
*Poor customer service
*Failure to provide contracted services
*Confusion about the services provided by the business (consumers believe the business will attempt to settle debts and/or issue payments to creditors)
*Consumer’s financial situation deteriorated due to failure of the business to perform contracted services
As an interesting coincidence in searching for information on this company, it appears the address for Debt Defense Services, listed by the BBB, is just one mailbox over at the UPS Store mail drop. – Source, Source
According to the State of Maryland, Clearing Solutions, LLC is a registered company in Maryland that was formed in 2013 by Greenspoon Marder. – Source
The interesting point is the client agreement is between Clearing Solutions, Inc. and not LLC. There is no Clearing Solutions, Inc. registered to do business in the State of Maryland that I could find.
Update November 20, 2015
Someone alerted me that another company using this approach is using the name Flying Point Financial/Clearing Solutions and the client agreement refers to FPCS. I did find one person online who confirms the name. – Source
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