Beware credit counseling services like Clear Your Debt LLC
An advisor at one of our regional centers asked me to share some information he learned while working with a client last week. During the course of the counseling session, the client revealed she had signed up with a credit counseling service, Clear Your Debt LLC, from Austin, TX. The advisor was concerned when he read the contract the client signed, which prompted him to investigate the company. The Better Business Bureau in Austin told the advisor they had received numerous complaints against Clear Your Debt LLC. Though Clear Your Debt promised financing, counseling and other assistance, the advisor’s conclusion - after reading their confusing contract and talking to the BBB - was that the client would pay $15,000 for basically nothing. At that point, the advisor encouraged the client to return the contract she signed and cancel the agreement (this was within 3 days of the client signing the agreement). The advisor called me and asked that I share the information with other SBDC advisors in case any of you encounter a client with questions about Clear Your Debt LLC. The advisor’s message is that small business owners should be cautious when dealing with any credit counseling services such as Clear Your Debt, and avoid any signing any agreement or contract with them without first talking to an advisor.
Here are a few informational items you may want to share with your clients:
The FTC website has a series of fact sheets for consumers, including the following.
Ø Knee Deep in Debt - go to - http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.shtm
Ø Fiscal Fitness: Choosing a Credit Counselor – go to - http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.shtm
Ø Credit Repair: Self Help May Be Best – go to - http://www.ftc.gov/bcp/conline/pubs/credit/repair.shtm
CNN.com ran an article with basic information about dealing with credit counseling agencies in June 2002. It is a little dated, but I think the information is still relevant.
'Click here to be debt-free': What you should know before signing up with a credit counseling agency, by Staff Writer Jeanne Sahadi, June 18, 2002: 1:31 PM EDT
http://money.cnn.com/2002/06/17/pf/banking/q_debtconsolidation/
--Mary Hoffman
Here are a few informational items you may want to share with your clients:
The FTC website has a series of fact sheets for consumers, including the following.
Ø Knee Deep in Debt - go to - http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.shtm
Ø Fiscal Fitness: Choosing a Credit Counselor – go to - http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.shtm
Ø Credit Repair: Self Help May Be Best – go to - http://www.ftc.gov/bcp/conline/pubs/credit/repair.shtm
CNN.com ran an article with basic information about dealing with credit counseling agencies in June 2002. It is a little dated, but I think the information is still relevant.
'Click here to be debt-free': What you should know before signing up with a credit counseling agency, by Staff Writer Jeanne Sahadi, June 18, 2002: 1:31 PM EDT
http://money.cnn.com/2002/06/17/pf/banking/q_debtconsolidation/
--Mary Hoffman
Comments
2. Over the years, we have found a few "clients" with "testimonials" for questionable products or services that appeared to either have come from the companies themselves or, as in this case, were anonymous.
Obviously you did NOT do your homework! Did it ever occur to you that a client in a settlement program wouldn't want the world to know about it?? Do you think it be a bit embarrassing to find yourself in that predicament?? Our dealership ROUTINELY sends clients to Clear Your Debt LLC, and has been pleased with the dignity they show OUR potential clients, clients that are hard pressed to find ANY respect! As a finace director, I must inform you that you are out of your element, but leave it to the media to try to smear a good company!
I suppose you've never read that WRITING IN ALL CAPS IS CONSIDERED SHOUTING, and it's really difficult to read.
Since the majority of debt relief programs last 36 months at least because clients in hardship situation don't usually have the funds to settle with their creditors right away or they wouldn't call a debt settlement company that means that you have completed most likely 1/3rd or less or your debt relief program.
Imagine that your creditors haven't been paid back in full yet, but if you didn't cancel and you completed your agreement that they would be...hard to say that the company didn't do their job if you didn't complete your obligation or even stay in your debt relief program even a year...sounds like a lack of commitment and/or trust on your part, unless you didn't realize that you were in a multi-year program...of course you have a signed contract most likely and it should clearly state the length of term that you agreed to.
How long of a debt relief program did you sign up for in August 2007...and how exactly were you going to handle this debt on your own and how would you have done so in 9months?
Easy to point fingers...but provide some facts too.
DO NOT use CYDEBT. Currently we are speaking with a local law firm for arbitration.
SAVE your money and frustration, avoid CYDEBT. They WILL NOT help!
Hurry because they will most likely change their name again or worse yet file chapter 11.
They get most of their employees off of craigslist. Avg age is 25yrs old with no financial background.No one there is Certified to counsel anyone.
They tell people on the phone that they have 10,000 clients, 25,000 clients, etc. Truth is their retention rate is about 38% based on what their unlicensed attorney says.Settlement is a good business if you are in it for the long haul but these guys are trying to make a bundle and as quick as possible.
Like with anything do your research.
“Clear Your Debt” actually clears victims’ bank accounts
Kimberly Donaldson couldn’t handle staring at a stack of unpaid credit card statements one more day. So when Clear Your Debt promised to negotiate settlements with her creditors, she thought they were the answer to her prayers. They even claimed to be a “Christian” organization--yet another reason Kimberly felt comfortable giving them her personal financial information.
But once Kimberly turned over all of her banking and credit information, she never heard anything from the company. They began withdrawing nearly $700 a month from her checking account, but she had no idea where the money was going.
It certainly wasn’t going to her creditors. They began calling her at work, demanding payments. Some even threatened to sue her.
Kimberly called Clear Your Debt for answers, but says the company wouldn’t take her calls or return her emails. She turned to the BBB in Austin, TX and filed a complaint.
Clear Your Debt claims they successfully deal with both small and large amounts of unsecured debt and that their expertise is based on years of experience in the debt settlement industry. They further boast that their unique debt reduction strategies have helped customers nationwide successfully get their finances back on track.
But their file at BBB tells a different story. BBB has already processed 49 complaints against them. 15 more are still pending. And they all follow the same pattern:
Consumers allege they are not notified that they are actually enrolled in the company’s debt settlement program. They are told they are merely filling out an application for the company to review and will be told later if they qualify. Consumers say monthly debits are made from their checking accounts without their consent or knowledge.
Consumers are also concerned about a lack of communication between Clear Your Debt and their creditors. Many state they have been sued by creditors because of the company’s failure to provide promised services. Consumers complain their own phone calls and emails are not answered either.
And finally, consumers claim Clear Your Debt does not honor their cancellation requests and continues to withdraw money from their accounts.
Clear Your Debt says their customers sign agreements that clearly spell out the terms and conditions of their services and that they state in that agreement that even though they do everything they can to negotiate settlements, creditors may still threaten to sue their customers.
Kimberly is now considering closing her bank account and hiring an attorney to handle her debt. She says she may even have to file bankruptcy.
Red Flags That Signal Trouble - BBB says watch out for a company that:
Demands that you provide account numbers or other financial details before it will discuss its services or fees. Reputable credit counseling agencies are happy to provide free information upfront about their services.
Boasts that it can "lower your monthly payments by 30 to 50%." This bold statement is rarely, if ever, true.
Promises that it can "get you out of debt easily." This is an irresponsible advertising claim. Getting out of debt is rarely an "easy" task. Avoid counselors who promise a quick and easy way to fix your credit problems.
We won't need much time. Steer clear of any agency that claims it can evaluate your situation in just minutes, or that offers to do so quickly over the phone. If services are provided over the phone, make sure the counselor is evaluating your personal situation, and not rushing to provide generic advice that could apply to any consumer. Experienced counselors may want to spend close to an hour with you reviewing your financial situation before recommending how to address your financial condition, and may offer follow-up sessions.
Claims that it can remove negative information, such as bankruptcy, from your credit report. It is illegal to make such a representation if the negative information reflects your true credit history. Accurate information cannot be removed from a person's credit report.
Issues a blanket recommendation for a debt management plan. DMPs are not for everyone. Do not agree to establish one unless and until you have reviewed your personal situation with a certified credit counselor who recommends such a plan and then customizes the plan to best manage your debt.
Requires "voluntary" contributions. Required "voluntary" contributions are not voluntary!
Is reluctant to provide the organization's business name and address. This is a clear sign of impending fraud. A toll-free telephone number or e-mail address is not sufficient. Scam artists typically avoid providing their physical location to thwart law enforcement detection.
Insists that you make an immediate decision. Reputable credit counselors will permit you time to evaluate their offer, shop around and make a determination that best suits your financial situation. As you are doing your research, however, remember that timing is critical when addressing your financial situation. Delays can cause your circumstances to worsen.
The phone calls that they said would cease in a few months, from angry creditors, NEVER STOPPED. I had to get my number changed, and I bet they're still to this day, eight month later, calling the hell out of that number.
CEASE AND DESIST, MY @$$. Each letter cost $8 to send, and in reality, most credit card companies probably laughed at them. None of them take Clear Your Debt seriously, I am STILL getting letters about settling things aside from Clear Your Debt. So when this company says that they are dealing with creditors, in what way? They tell you to not contact the company, so your credit card companies think you've just simply stopped paying your bills and have no plans of making good on them. Meanwhile, your late fees and charges add up, and you end up totally @#%&%@ if you do want to ever make good on it on your own.
You might pick up that I'm angry here, that is because, one of the creditors completely disregarded that I am with Clear Your Debt, and summoned me to court, 300 miles away. I was in college at the time, unable to even attend, so I don't even know what happened at that hearing.
But I do know this, I am going to have to file bankruptcy at the age of 23 because of these people. One of the companies froze my mom's bank account just because my name was on it. I am not the primary account holder and I have yet to make one deposit into her bank! The credit card companies will strong-arm you into paying if they want to, and Clear Your Debt just sits back and says, "well just tell them you're with us." Bottom line, the credit card companies don't care. Stay far, far away from this company or ones like it if you don't want your credit totally ruined.
http://www.christiansdebtcounseling.com/
One thing I noticed were a lot of anonymous posters here. Don't be afraid of who you are! Post freely. You'll feel better...I promise.
Now, about good ol' CYDEBT. What can I say that hasn't been said?
When I first started working there in October of 2006, the company was open and honest. I remember Jordan was going through a nasty custody battle. The one thing about Jordan Lane (VP of Sales or Ops) that people need to know...the guy has a genuine heart. I honestly believe that. Maybe I'm foolish. However, it's no secret that money is his god.
He is one of the most brilliant sales trainers I've ever come across. However, the longer I was with the company, the farther away we drifted from the mission that was conveyed when I was hired.
Make no mistake, when I was first there, we were all about helping people. That's why we signed so many up. That belief level was sky high. But, as time goes on, as some of the people you "helped" call you at 2 in the morning, crying because they're going to lose their homes or their spouse is leaving them...how can you do it?
Cognitive dissonance will only take you so far, and if you have a conscience, you eventually feel sick with each call you make. During the last month I was there, I developed quite the drinking problem, as I had to have at least 3 dirty martinis and a few long islands, just to be able to go in there and convince people to do this program. Eventually, I stopped doing even that.
The guys who run it, Derin Scott and Jordan Lane have the ability and resources to help people. If they truly did that (and would hire me back...lol), I wouldn't have a problem going back and working for them. But, I highly doubt it.
I occasionally pray for them. Because they can still do good. I hope they have a change of heart, and actually do it.
Until they do, I'd recommend staying away from these companies, Clear Your Debt, Swiftrock and Topaz.
Chances are, you didn't read the paperwork and were rushed through to Docusign process. It amazes me how many people don't read what they sign.
Now, you can get back any payments you've made in the last 60 days if you go to your bank and ask them to reverse it under regulation E. But if you tell them you authorized it, it won't go through...so I've heard.
Really though, have your creditors gotten your letters and Powers of Attorney from them? I mean, the fees have been paid. You may as well save your money in the account like you're supposed to be doing, and try to get them to negotiate the settlement, per the terms of your agreement.
It's sucks, but you've paid this money, might as well make them earn the final third of their service fee (again, read your agreement), since they don't do refunds.
Jordan Lane
VP of Operations
We disclose exactly how long it will take for the program to be completed. We tell the customer the payment break down, that it will have a negative effect on the customers credit, and exactly how long it will take to get out of the program. The customers complaining did not fulfill the program. If you choose a 36 month program it will take 36 months to get the desired results. We are asked to be 100% honest with customers, to not accept people that this program will not benefit and to do our best to help people. This is what is expected by Jordan and Caleb. Just like any other company that deals with customers sometimes you get an employee that isn’t honest and may mislead a customer. I am completely confident that if an employee is not being 100% honest with a customer the employee would be reprimanded and probably terminated. I feel great about my job here and think that if you worked here and you are blogging about how dishonest this place is maybe you should look at the type of employee you are. We are what we say we are, and we do what we say we do. If you are in our program and you bail early, then you chose to go elsewhere. If you are in a 36 month program and you stay in the program, you are done and have the results we promised. It’s that simple. I just wanted to say something.
I just left a message at the number in which you provided on you message, but it was for someone named "Denise"? If that is the correct number, I left my personal cell phone number, please feel free to contact me on that line. If this is NOT the correct number, please email me at JordanLane@CYDEBT.com with a good number. Thanks so much for providing me the opportunity to speak with you.
Jordan Lane
I was told up front that part of their end comes from some of the first payments. It also became clear, that for the leverage needed to negotiate, the credit issuing company would have a reason to negotiate. Ultimately, that would be to consider no other viable alternative to gather funds from the borrower. Which would mean that the borrower (me) would have to be considerably deliquent.
What is happening to me now, is what is happening to many people. Many, like myself, who for many, many years have never been late once, over the limit, etc. Many of the creditors are lowering the current limits, which lowers available credit, which lowers the credit score, which causes more creditors to lower limits, impose higher interest, etc., etc. The cycle is reaching a point that I am going to have to do something.
The Swift Rock representative has encouraged me to research them, take the time to find the right questions, involve my spouse in the questioning, etc. I have been around a long time, and been taken on a ride more that I care to admit. But, they have ultimately been learning experiences, and it's been a long time since I've been taken, or even given any time to explain.
I understand their program is a predetermined length program. As I have mentioned to the representative, I have to decide whether I am willing for my credit to be 'ruined' for that long. However, due to the current cycle of what's happening, I see my score lower and lower each time I check. As far as if I'm sued, I long to get one/some of the creditors in court (on their dollar).
Our wages aren't and haven't been increasing. In the last couple months, we have seen our retirement fund lose over 70%.
The CC companies and collection companies are strong arm responders, and nothing short of an effective court order is likely to actually have any effect on them. That's just the way it is.
If Swift Rock (or any of the other similar companies) were to litigate each creditor/borrower into court to retain such order, their fees would have to be astronomically unlimited.
The Swift Rock representative is supposed to call me back in two days. I don't know. I want to think I can keep the flow going, but reality tells me it is going to get worse. I'm a little past my limit of ability to pay, and sometimes have to utilize the available credit to 'catch up'.
This is not good, nor ultimately effective.
I know what I'm looking at if I do decide to employ the assistance of Swift Rock. As I told the representative today, I would utilize them only because I would like to have some sense of structured application, and to do the best I can with the problem at hand.
I know, most can be done on my own. However, if it did go to court, I would like to have the ability to show some movement toward assistance.
Fortunately, I live in Austin TX, (where they physically have office space with some 150 employees or so) so I marched down there and actually talked to one of my creditors (capital one auto finace who I owed after a repossesion) on speaker phone with the swiftrock rep sitting right next to me. They negotiated back and forth till they settled right then and there. The offer was formalized in writing from capital one, and we settled for some $1800 on an original debt of $5500!!! Don't tell me this sh*t doesn't work.
Just to put things in perspective, I signed up with swiftrock only because I knew no other option. My credit was already F.U.B.A.R. (not good) because of my choices. I am college educated, had a good job making $60k +/yr, but got into gambling and lost almost $100,000 in 2 yrs. During this time I racked up almost $30k in credit cards and personal loans which I stopped paying in '06.
Creditors of course began to call my home and work...causing problems at both. So I turned to bankruptcy. I got a consultation with a bk lawyer, but I didn't like what I heard. Besides not wanting the stigma associated with Bankruptcy, and the embarassment in front of my brothers and parents, I didn't like it because he told me that I made too much money to qualify for a chapter 7 bk (which in my opinion is the only one you should consider) and he told me that I would only qualify for a ch. 13. In my specific case, this meant that I would have to enter a 5 year plan with my creditors in which time I would end up paying everything I owed with interest!!! Not to mention the $3000 of my own money in lawyers fees that I would have to pay up front before any of the bk papers could be filed!!! BTW, that just so happens to be about the amount i paid for my swiftrock fees, and I've already seen better results!!)
So what I'm trying to get at here is that ALL OF YOU LOSERS WHO ARE on here B*TCHING ABOUT THE FEES,AND WHAT THEY DIDN'T DO FOR YOU,GET OVER IT!!!! YOU(AND THE KINDA GUY THAT I WAS 8 MONTHS AGO,)ARE THE REASON THAT IT DIDN'T WORK OUT...THAT ANY OTHER SETTLEMENT,CONSOLIDATION, OR COUNCELING AGENCY WON'T WORK OUT, AND THAT ONLY A BANKRUPTCY WILL. YOU DON'T KEEP YOUR END OF THE DEAL! YOU DIDN'T WITH THE CONTRACTS OF THE CREDIT CARD COMPANIES, AND YOU DIDN'T WITH THIS ONE...NOTHING NEW.
This company has been doing DEBT SETTLEMENT as its ONLY business for 6 yrs now, as CYdebt first, and now Switrock. I would think the FTC would have shut them down by now if they weren't doing something right.
But Clear Your Debt, or whatever it's being called, in no way conflicts with the services of the SBDC. We offer free advisement. We loan no money. We get no payments for our services except flat salaries.
For the record, we're in favor of people clearing their debt, as it makes them more viable businesses.
As someone who worked for one of their related companies, January is typically a very busy month.
Please feel free to contact me directly. January is a VERY busy month for us, though that is never an excuse for us not answering a clients call. Eric Ogunbase was a representative of one of our companies,(and did a wonderful job for us, great guy...), and is correct in directiing you to our contact info on your agreement.
Jordan Lane
VP of Operations
512-439-1551
VP of Operations
512-439-1551
I called this number over a week ago, left a message and no one has returned my phone call. I don't know if this number is legitimate.
http://bit.ly/CgICm -- The URL is long, so I shortened it.
Everything I've written can be independently verified by two or more different people. In addition to that, I'm posting this under my OWN NAME, not hiding behind "Anonymous". I'm also able to put together coherent sentences to properly articulate my point.
The Director: Charles Randy Lepley
http://www.supreme.courts.state.tx.us/miscdocket/04/04915100.PDF
Here is a link showing the good director being disbarred Bar# 12219050
Bankruptcy filing 05/29/2007 Chapter 13 dismissed case# 0710942
Federal Tax Lien 07/20/2007 $11,902 case # 2007061213
Now for the VP Jordan T Lane
can be reached at 512-490-0930,
800-630-4665, or 512-906-2487
Federal Tax Lien 08/12/2005 $12,872
nothing to serious but still wouldn't entrust him with my money.
Now for the owner's of these's companys.
Shannon & Derin Scott
they can be reached at 512-267-7519
512-565-0177
They filed a chapter 7 bankruptcy on 08/22/1997 & was discharged on 09/30/1997 case # 9754330
Federal tax lien 10/05/2006 $6086
case #2006193794
Oregon State Tax Lien 03/10/2005 $6825
This is all PUBLIC information about these people that run these so called good company's. My guess is if they cant handle there own finances, how could they handle yours.
Randy Lepley is also known as C Randy Lepley and Charles Randolph Lepley. Lepley is a former attorney but resigned from the Texas State Bar in 2004 in lieu of disciplinary action. His practice was mostly in Williamson County Texas. Lepley has a substantial outstanding judgment against him in Williamson County from November 2004. In Dec 2009 Lepley filed a petition with the 277th District Court of Williamson County to be reinstated as a lawyer. The judge signed the petition, however, the State Bar didn't agree with the petition and filed a summary judgment in response. Lepley dropped the petition.
When Lepley was practicing law, he was accepting client's retainer fees, but wasn't doing anything on the cases. Sounds similar to what he is doing in the debt/credit counseling business.
http://www.kvue.com/news/consumer/216090531.html