Do not sign up for the Federal Debt Assistance Association Debt Validation Program before you read this. If you’ve already signed up for their program, read this before you cancel.
We were contacted by FDAA through a mail solicitation last month, and my wife decided to sign up for their FDAP program without my consent. I didn’t know what to think about it at first, but I wanted to give both my wife and the company the benefit of doubt. So I decided to do my own research on the Federal Debt Assistance Association and their Debt Validation program, and what I found out was very shocking:
First of all, debt validation is not a legitimate debt relief service, all these debt validation companies lie about getting your debts wiped out. No one has ever gotten out of debt by filing debt validation letters. It has never happened, and they know it. They will tell you to stop paying your creditors, let the accounts go to a collections, and they will send the agency a validation demand letter, the agency won't be able to validate it, and it will be wiped off your credit report.
This is a lie. The only real purpose for debt validation is to VERIFY that a debt is yours, but these companies twist the truth to make it sound like they are “invalidating” a debt to wipe it off your credit report, which has never happened, and they can never prove it to you.
They will tell you a debt that can't be validated is the same as a debt that you don't have to pay. This is also a lie. A debt that can’t be validated is going to be TEMPORARILY taken off your credit report (if at all), and then the collection agency will sue you, or they will refer the debt back to your creditors or sell it to another collection agency and the cycle continues again.
They will tell you not to feel bad about stopping to make payments to your credit card issuers, because the card issuers have a lender’s risk insurance policy to recoup 100% of your balance if you stop paying.
This is an outright lie, and they know it. There is no such thing as a Lender’s Risk Insurance Policy or default insurance on your credit cards. If your account gets charged-off, they will send it to collections, your credit score will be destroyed and they will attempt to continue to collect on the remaining balance. Many people have gotten sued because of debt validation letters, but they will not tell you that, and none of these companies are going to provide you with an attorney to defend you. You will lose in court because you have legitimate debt and a judge will garnish your wages.
They will tell you to use your available credit to pay for the program, and they will wipe out all the debt for you. This is a lie. Debt validation has never wiped out anyone’s debt. You will end up with more debt and your credit score will be ruined because they don’t actually do anything but file documents. Even their contract says “No Debt Relief Services Offered,” but they trick you to believing it means something else, they don’t want you to read it on your own.
They will tell you that they have an A rating under their parent company Clear Solutions, Inc on the BBB, but on their website there’s no mention of clear solutions. So clear solutions is either a sham company they using to protect themselves, or they are intentionally misleading customers to another company.
Also, I researched the owners of clear solutions and found the same owner is linked to Clearing Solutions, LLC, which has an F rating on the BBB and over 54 complaints that prove debt validation is a scam service. Here is the link to Clearing Solutions BBB website: bbb.org/greater-maryland/business-reviews/debt-relief-services/clearing-solutions-in-lutherville-md-90260007/reviews-and-complaints
They may also be linked to several other scam debt validation companies or operating under several names. This review is a warning about Federal Debt Assistance Association and mostly other debt validation scams out there that prey on desperate people and don’t help them.
We canceled their service and my wife and I have contacted the FBI, but they don’t move quickly enough until more victims come forward to shut these scam operations down. If you have been a victim of Federal Debt Assistance Association or any debt validation services, you should request a full refund, and report them to the FBI, and post online reviews to warn others too.
Don't trust this FDAA business. If you do, you will be the next victim. This business lied in the ad and contract. They don't do like what they tell you. Once you signed the contract with them, they will take your money out of your bank; but they can't help you. They will damage your credit scores. They will tell you to stop making payments to your credit cards. They will get you to be sued by your credit cards or debt collectors. They won't pay you back your money even they can't help you. You will see more complains about this business if you search on Google. I did the search and found out about this business, but it was too late for me. They took my money. I asked them to pay me back since they could not help me to clear off my credit card debt. But they don't pay me back.
I signed up for debt relief services with this company in December 2016. I am not an ex employee, my "debt specialist name" would be Russel Sutton. After reading all of the other reports I have tried contacting the said office and also Russel Sutton with now reply.
I did however recieve an email with the following information.
It state that the company is on layoff as of March 14 2017, it goes on to state that they are still planning on paying their employees and may possibly call them back one by one. After recieving this email I tried again to contact Russel Sutton and also I tried to call the main number and asked for David Piccione that is the person who wrote the email to the employees of the FDAA. I did finally get in toudch with a man who stated that Russel Sutton is no longer employed there due to drug and alcohol abuse and Dave is not available. I asked about the email of said layoffs and the man just hung the phone up on me. I am not sure what kind of scam they are running but my wife and I am calling the police to see where and how we can get some help.
This people uses Seals that looks almost like the one the government uses, even in their web page the use the United States Capitol to make you believe that the letter is from the government.
I got a call with a voicemail message from this company Federal Debt Assitance Association about their Federal Debt Assistance Program and someone told me they can eliminate my debt in 12 months and I will have to stop paying my credit cards. They said if I stop paying my credit cards the banks will write it off.
This sounds like a debt elimination scam. They preying on deperate people who need help with thier credit card debt. They call and leave scary messages on phones, pretending to be the government. No legitmiate company would do something like this. I would stay far away from these scammers. I will not callback to signup.
Federal Debt Assistance Association, LLC. Reviews
Do not sign up for the Federal Debt Assistance Association Debt Validation Program before you read this. If you’ve already signed up for their program, read this before you cancel.
We were contacted by FDAA through a mail solicitation last month, and my wife decided to sign up for their FDAP program without my consent. I didn’t know what to think about it at first, but I wanted to give both my wife and the company the benefit of doubt. So I decided to do my own research on the Federal Debt Assistance Association and their Debt Validation program, and what I found out was very shocking:
First of all, debt validation is not a legitimate debt relief service, all these debt validation companies lie about getting your debts wiped out. No one has ever gotten out of debt by filing debt validation letters. It has never happened, and they know it. They will tell you to stop paying your creditors, let the accounts go to a collections, and they will send the agency a validation demand letter, the agency won't be able to validate it, and it will be wiped off your credit report.
This is a lie. The only real purpose for debt validation is to VERIFY that a debt is yours, but these companies twist the truth to make it sound like they are “invalidating” a debt to wipe it off your credit report, which has never happened, and they can never prove it to you.
They will tell you a debt that can't be validated is the same as a debt that you don't have to pay. This is also a lie. A debt that can’t be validated is going to be TEMPORARILY taken off your credit report (if at all), and then the collection agency will sue you, or they will refer the debt back to your creditors or sell it to another collection agency and the cycle continues again.
They will tell you not to feel bad about stopping to make payments to your credit card issuers, because the card issuers have a lender’s risk insurance policy to recoup 100% of your balance if you stop paying.
This is an outright lie, and they know it. There is no such thing as a Lender’s Risk Insurance Policy or default insurance on your credit cards. If your account gets charged-off, they will send it to collections, your credit score will be destroyed and they will attempt to continue to collect on the remaining balance. Many people have gotten sued because of debt validation letters, but they will not tell you that, and none of these companies are going to provide you with an attorney to defend you. You will lose in court because you have legitimate debt and a judge will garnish your wages.
They will tell you to use your available credit to pay for the program, and they will wipe out all the debt for you. This is a lie. Debt validation has never wiped out anyone’s debt. You will end up with more debt and your credit score will be ruined because they don’t actually do anything but file documents. Even their contract says “No Debt Relief Services Offered,” but they trick you to believing it means something else, they don’t want you to read it on your own.
They will tell you that they have an A rating under their parent company Clear Solutions, Inc on the BBB, but on their website there’s no mention of clear solutions. So clear solutions is either a sham company they using to protect themselves, or they are intentionally misleading customers to another company.
Also, I researched the owners of clear solutions and found the same owner is linked to Clearing Solutions, LLC, which has an F rating on the BBB and over 54 complaints that prove debt validation is a scam service. Here is the link to Clearing Solutions BBB website: bbb.org/greater-maryland/business-reviews/debt-relief-services/clearing-solutions-in-lutherville-md-90260007/reviews-and-complaints
They may also be linked to several other scam debt validation companies or operating under several names. This review is a warning about Federal Debt Assistance Association and mostly other debt validation scams out there that prey on desperate people and don’t help them.
We canceled their service and my wife and I have contacted the FBI, but they don’t move quickly enough until more victims come forward to shut these scam operations down. If you have been a victim of Federal Debt Assistance Association or any debt validation services, you should request a full refund, and report them to the FBI, and post online reviews to warn others too.
Don't trust this FDAA business. If you do, you will be the next victim. This business lied in the ad and contract. They don't do like what they tell you. Once you signed the contract with them, they will take your money out of your bank; but they can't help you. They will damage your credit scores. They will tell you to stop making payments to your credit cards. They will get you to be sued by your credit cards or debt collectors. They won't pay you back your money even they can't help you. You will see more complains about this business if you search on Google. I did the search and found out about this business, but it was too late for me. They took my money. I asked them to pay me back since they could not help me to clear off my credit card debt. But they don't pay me back.
I signed up for debt relief services with this company in December 2016. I am not an ex employee, my "debt specialist name" would be Russel Sutton. After reading all of the other reports I have tried contacting the said office and also Russel Sutton with now reply.
I did however recieve an email with the following information.
It state that the company is on layoff as of March 14 2017, it goes on to state that they are still planning on paying their employees and may possibly call them back one by one. After recieving this email I tried again to contact Russel Sutton and also I tried to call the main number and asked for David Piccione that is the person who wrote the email to the employees of the FDAA. I did finally get in toudch with a man who stated that Russel Sutton is no longer employed there due to drug and alcohol abuse and Dave is not available. I asked about the email of said layoffs and the man just hung the phone up on me. I am not sure what kind of scam they are running but my wife and I am calling the police to see where and how we can get some help.
This people uses Seals that looks almost like the one the government uses, even in their web page the use the United States Capitol to make you believe that the letter is from the government.
I got a call with a voicemail message from this company Federal Debt Assitance Association about their Federal Debt Assistance Program and someone told me they can eliminate my debt in 12 months and I will have to stop paying my credit cards. They said if I stop paying my credit cards the banks will write it off.
This sounds like a debt elimination scam. They preying on deperate people who need help with thier credit card debt. They call and leave scary messages on phones, pretending to be the government. No legitmiate company would do something like this. I would stay far away from these scammers. I will not callback to signup.