Credit Solutions (CSA) Under Fire for Bad Practices.

The Debt Settlement industry has been under scrutiny recently because of the inability of some companies to complete the task they promise and for their fee structuring. Suit has been filed against Credit Solutions (CSA) a large Debt Settlement company out of Texas. In fact, they're right down the road. It's unfortunate that the true reason for debt settlement, and the customer service aspect have been overlooked for a price.

While CSA may not be a shining example, there are good debt settlement companies out there dedicated to helping consumers get out of debt. It is always best that you do your homework on a company prior to making a decision. Debt Settlement is not right for everyone and should be approached as a way to resolve your debt without filing bankruptcy, not a solution just to get away with paying less than you owe.

Hagens Berman Sobol Shapiro filed a proposed class-action lawsuit against Credit Solutions of America (CSA) claiming the company is violating federal prohibitions on predatory behavior against individuals in significant debt. CSA offers itself to consumers as an intermediary between consumers and their debtors generally claiming the company can help people shrink their debt by 60 percent.

Before beginning work with any customer CSA requires that 15 percent of a customer’s total debt be paid to CSA through monthly payments with three large installments in the first three months. In addition CSA instructs customers to stop paying their creditors so negotiations can begin. This leads to a range of lawsuits, attorneys’ fees and litigation costs for unpaid debts and leaves customers far worse off then when they came to CSA.

If you are working with CSA, have signed a contract and made at least one monthly payment you may be eligible to join this class. You can contact HBSS at info@hbsslaw.com , click here to join this case, or call 206-623-7292.

Inside info about Better Business Bureau Members.

As consumers we are always pushed to know who we're dealing with when looking for a service to be provided. We ask friends for referrals, look around for consumer reports, and have been taught to look to the Better Business Bureau for answers, but there is something about the BBB that member companies don't want you to know.

The BBB is a paid membership organization, but you don't have to pay to get listed, just to cover your tracks. If a consumer files a complaint against your business with the BBB it is opened for investigation. The company then has an opportunity to work through the BBB to resolve the issue. All complaints and resolutions are listed with the BBB. It's like a little investigation.

This is great right? Someone looking out for the consumer to make sure they get the service they deserve for their hard earned dollars. I have noticed in browsing through some companies that I know do business poorly, and there is not a single complaint. Does this mean I'm wrong and they are on the up and up? Have they mended their poor business practices and been on the straight and narrow? What about other companies that have complaints and resolutions, are they sub par in their practices?

I dug around to try and find the answers, and it may or may not come as a surprise, money talks when it comes to complaints. Non-paying companies complaints and resolutions get listed for the public to see. They are tied to the company name and show both the err of the company and the steps they took to make it right by the consumer, but paid members have no complaints right?

Wrong! As a paid member of the BBB a company will go through the same steps to resolve an issue, but once it is resolved the complaint and resolution just disappear. I found that a little disturbing. If someone were to research a company, they would look spotless because they paid dues, but a company that knows they may have made a mistake, took the steps to resolve it, and did not pay to have it go away looks less appealing to the public eye.

Maybe we should all write to the BBB to not have any deletions. Just because a company pays dues does not mean their 10 complaints a week should be hidden.

How Dirty are Collection Attorneys?

I found some marketing information from a debt collection attorney that could shed some light on all of this. Here are a few snippets.

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