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Has anyone tried Credit Solutions featured on NBC? They settle debts for 40-60% less!


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This is different from debt consolidation and Consumer Credit Counseling Services? Supposedly this company settles debts for 40-60% and makes arrangment and has further details concerning the 1099 form, where "some" people may not have to pay taxes on forgiven amounts(see below).

Also, you're not required to include all of your debts, which debt consolidation requires.

You can pick and choose the debts to include in the program.

Here is their website:

http://www.creditsolutions.com/landpage320/land_320.html

Also, the video of their segment on NBC is on the website. A second intro video is below:

https://www.creditsolutions.com/fullscreen.html

Edit concerning 1099 form: Disregard my earlier comment about the 1099 form. I misunderstood, and my use of the word "waive" was not clear. I emailed this company, and was told amounts under $600 are forgiven without a 1099 being submitted, OR if the person is insolvent at the time the debt was accrued it will not effect them in terms of having to pay taxes.

Supposedly, if the person was insolvent due to disability, homelessness, and various other situations, even if the 1099 is submitted they will not have to pay taxes on the forgiven debt. I called the person who did my taxes in the past, and confirmed this is true. He also checked with the supervisor of HR Block.

Note: If someone has to be a few hundred in taxes a year or two later, while saving thousands of dollars NOW, for "some" people that's a good deal if they'd prefer not to file bankruptcy. I think payment arrangements on those taxes can also be made.

So anyone who plans to contact this company will have to ask specifically how this applies to "your' situation. I'm hoping to hear from this company some time this week, as I think its worth at least looking into. I emailed their office, and received a brief answer concerning the 1099, but was told I'd be contacted later. Thanks

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Except for one, which I'll mention in a moment, there are three types of "debt solution" companies...

1) those who have been put out of business by various states attorney generals for their illegal and inethical practices (or outright theft of funds from consumers),

2) those currently under investigation and soon will be out of business,

3) those who are too new to have been investigated but will be (usually started by those saem people from No. 1 above

The only company that has a significant history and is truly legitimate is CCCS - almost every town of significant has an office.

Now, with that out of the way, you also need to understand that using any "debt counseling" service has the same impact on your credit history as a Chapter 13 bankruptcy. You also should understand that there is very little these services can do for you that you can't do for yourself.

About the only real help they can be is if a majority of your debt is credit card debt...in those cases, CCCS can negotiate much lower interest rates for you but keep in mind that your primary problem is not the interest rate you are paying; it's the debt and the only true solution to debt is to pay it off and stop living on more than you make.

Any talk of "negotiating" on the 1099 should be a big red flag IMHO...the requirements/demands for issuing a 1099 is covered by the tax code and not a matter for negotiation.

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Hi robert, this is not a debt consolidation company or credit counseling. This organization has also been on the NBC national news, and noted favorably with the Better Business Bureau and other reputable agencies. So this sounds a little different from the places you've mentioned. Hopefully someone here has tried them and will have feedback. :)

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You know what makes this a scam? Claiming they can "waive" the 1099. No one can do that if the debt is truly settled, and the amount forgiven is over $600. It is the LAW that the creditor must issue a 1099.

From the IRS:

http://www.irs.gov/instructions/i1099ac/ar02.html#d0e189

To learn more about these scams, search for "debt settlement" in these forums.

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Why the heck should we consider the company valid just because NBC ran some story on it?

Good Morning America had a feature about removing cellulite products, didn't make me go out and buy them...:rolleyes:

And BBB doesn't endorse companies, it's just a clearing house of complaints. A new company may just not have had any complaints yet.

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Why the heck should we consider the company valid just because NBC ran some story on it?

Good Morning America had a feature about removing cellulite products, didn't make me go out and buy them...:rolleyes:

And BBB doesn't endorse companies, it's just a clearing house of complaints. A new company may just not have had any complaints yet.

Amen! The news will tell you anything to cover that 30 second slot!

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The only person who can fix any debt you have incurred is only you. These type companies prey on people who are uninformed about their rights to improve their current credit status. The one thing I love about CIC, is that nearly everyone in here has had a terrible credit report at some point, meaning being, we have become patient, informed, diligent, and cautious about the use of credit.

There is no quick fix to credit repair. Its a long tedious process which moves at time slower than a snail, and those of us who accept this really never have to worry about our credit slipping again. Because, we repaired more than just our credit. We repaired the way we live. Successful self repairers generally have one common trait, never get in a credit dilemma again. Why because we have learned to live within our means not within our wants.

We have repaired our payment habits, by paying bills when they are due, not overlooking a bill for 2 months. We have repaired how we deal with CA, OC, etc.. by knowing our rights as consumers.

Anyway enough with my ranting I just need to vent this stuff sometimes

h

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You know what makes this a scam? Claiming they can "waive" the 1099. No one can do that if the debt is truly settled, and the amount forgiven is over $600. It is the LAW that the creditor must issue a 1099.

Yep, that's right. People, don't fall for this nonsense. These scammers will try to get you to believe all kinds of garbage.

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Amen! We were considering credit counseling before I found this site, and found it I did...just in the nick of time.

I would never have believed I could deal with all of it before, but this board has empowered me and now I have no qualms about standing up for my rights where necessary and facing the music where necessary.

My profound thanks for this board being here!:D

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Edit concerning 1099 form: Disregard my earlier comment about the 1099 form. I misunderstood, and my use of the word "waive" was not clear. I emailed this company, and was told amounts under $600 are forgiven without a 1099 being submitted, OR if the person is insolvent at the time the debt was accrued it will not effect them in terms of having to pay taxes.

Supposedly, if the person was insolvent due to disability, homelessness, and various other situations, even if the 1099 is submitted they will not have to pay taxes on the forgiven debt. I called the person who did my taxes in the past, and confirmed this is true. He also checked with the supervisor of HR Block.

Note: If someone has to be a few hundred in taxes a year or two later, while saving thousands of dollars NOW, for "some" people that's a good deal if they'd prefer not to file bankruptcy. I think payment arrangements on those taxes can also be made.

So anyone who plans to contact this company will have to ask specifically how this applies to "your' situation. I'm hoping to hear from this company some time this week, as I think its worth at least looking into. I emailed their office, and received a brief answer concerning the 1099, but was told I'd be contacted later. Thanks

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It is part of the "debt fixer" mantra to "...don't worry about the 1099c, you don't have to pay if you're insolvent...".

The rest of the story is...1.) in order to get you the settlement deal, they tell the creditors that you're insolvent, but b.) the IRS has a different criteria. In other words, what the creditors think, and what the IRS are two entirely different things. Basically, the only thing that convinces the IRS is if you declare banktruptcy.

Furthermore, if the "settlement" is for less than $600, the creditor does not have to issue a 1099c. However, the IRS still expect YOU to report it and pay taxes on it. We had one person here who had a debt fixer settle their CC debt for 40%...saved them $20,000...the IRS wanted $7,000 in taxes.

And, just to add salt to the wounds, the American Bar Association points out that with the wording that in the FCRA, if you get use a debt fixer to help you deal with any of your debts, you give up the protection of the FCRA in case any debts are reported inaccurately.

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It is part of the "debt fixer" mantra to "...don't worry about the 1099c, you don't have to pay if you're insolvent...".

The rest of the story is...1.) in order to get you the settlement deal, they tell the creditors that you're insolvent, but b.) the IRS has a different criteria. In other words, what the creditors think, and what the IRS are two entirely different things. Basically, the only thing that convinces the IRS is if you declare banktruptcy.

Furthermore, if the "settlement" is for less than $600, the creditor does not have to issue a 1099c. However, the IRS still expect YOU to report it and pay taxes on it. We had one person here who had a debt fixer settle their CC debt for 40%...saved them $20,000...the IRS wanted $7,000 in taxes.

And, just to add salt to the wounds, the American Bar Association points out that with the wording that in the FCRA, if you get use a debt fixer to help you deal with any of your debts, you give up the protection of the FCRA in case any debts are reported inaccurately.

I had two appointments yesterday concerning past due taxes which have nothing to do with my credit card debt, and spoke to supervisors "in person" at HR Block and the irs treasury department in downtown chicago. Both confirmed that this is true concerning an insolvent person not having to pay taxes on forgiven debt even if a 1099 form is submitted. I can't confirm about this agency on NBC, since I haven't worked with them(but will if things check out), but I have confirmed what they've told me concerning the 1099 form is correct. Details are on the IRS website as I've printed them out. Anyway, I have nothing to lose by checking out creditsolutions(not a consolidation or consumer counseling service), so I'm looking forward to seeing what they have to say. I'll also keep what you've stated in mind. Thanks.

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Both confirmed that this is true concerning an insolvent person not having to pay taxes on forgiven debt even if a 1099 form is submitted.

Absolulutely! If you're insolvent in the eyes of the IRS at the time you're issued a 1099c, then you probably don't have to pay taxes on it.

The problem is that the IRS uses the same criteria to determine insolvency as the Bankruptcy Courts do in determining whether you qualify for a BK 7 or a BK 13. The criteria is...is your income below the poverty level for your area. Debt fixers would have you beleive that you add up your assets, subtract your liabilities, and if its below zero, you're insolvent. The IRS doesn't see it that way.

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I had two appointments yesterday concerning past due taxes which have nothing to do with my credit card debt, and spoke to supervisors "in person" at HR Block and the irs treasury department in downtown chicago. Both confirmed that this is true concerning an insolvent person not having to pay taxes on forgiven debt even if a 1099 form is submitted. I can't confirm about this agency on NBC, since I haven't worked with them(but will if things check out), but I have confirmed what they've told me concerning the 1099 form is correct. Details are on the IRS website as I've printed them out. Anyway, I have nothing to lose by checking out creditsolutions(not a consolidation or consumer counseling service), so I'm looking forward to seeing what they have to say. I'll also keep what you've stated in mind. Thanks.

No, you have nothing to lose by checking it all out. I wish you a lot of luck with this. Please let us know how it works for you. My general rule is, "what works for one, may not work for another..." so...if you can find a way to settle out your financial "house" than go for it! :)

In my case, I had a "forgiven" debt that the IRS came back to collect taxes upon (they took 600.00) and technically I could've fought it because the house that the debt was attached to was foreclosed upon, I had declared BK trying to save it, etc, etc---so, the circumstances DO count. I had never received the 1099 though and didn't even know they'd forgiven it. They collected it from my 2005 taxes by the way and I was MARRIED by then...and wasn't married when the debt occurred. Just be careful.

Good luck.

Elyse

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I found that out the hard way. The IRS did not believe I was insolvent, I owed quite a bit in taxes. The IRS doesn't give breaks. Also, remember that your credit WILL be trashed, and if you are sued while negotiating, the debt fixer won't help you.

Also, the debt fixer charges commissions on all "savings"- your effective rate is 40% off the debt, but the debt fixer gets 15% of the savings. That brings you to 34% off.

The IRS gets 20% or so on the forgiven debt in taxes, so now you save 26%.

And you get the "was defaulted, now settled for less than full balance" notation.

Just so you know...

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No, you have nothing to lose by checking it all out. I wish you a lot of luck with this. Please let us know how it works for you. My general rule is, "what works for one, may not work for another..." so...if you can find a way to settle out your financial "house" than go for it! :)

In my case, I had a "forgiven" debt that the IRS came back to collect taxes upon (they took 600.00) and technically I could've fought it because the house that the debt was attached to was foreclosed upon, I had declared BK trying to save it, etc, etc---so, the circumstances DO count. I had never received the 1099 though and didn't even know they'd forgiven it. They collected it from my 2005 taxes by the way and I was MARRIED by then...and wasn't married when the debt occurred. Just be careful.

Good luck.

Elyse

Thanks for the encouragement Elyse449! I'll check em out. :)

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CreditSolutions.com is a big joke. I started with them in June 06 and was sued by 3 creditors by the end of Sept.-Oct. They did nothing for me but cause so many problems. I finally dropped them, turned them into the BBB and got a refund. Half of the people working for them do not know what they are doing. I DO NOT RECOMMEND THEM!!!!!

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  • 4 months later...

It's been 5 months since the last post...

I'm bumping this up because I'm trying endlessly to fight my case. I even got my bf to join this program before I realized what a scam this was and now he's getting sued by Wolpoff & Assoc. I told my bf to wait until I get my referral fee before we contact BBB & FTC just so I can get some extra cash... which I have after I got my check in the mail.

Worried is right, no one in their company knows what they're doing. I've gotten e-mails from them that made no sense.. "Thank you for your patients as we try to resolve the matter"... and I'm paying these people to settle my account with lawyers and they cant even construct a good sentence?!!!? I am furious!!

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Why the heck should we consider the company valid just because NBC ran some story on it?

Good Morning America had a feature about removing cellulite products, didn't make me go out and buy them...:rolleyes:

And BBB doesn't endorse companies, it's just a clearing house of complaints. A new company may just not have had any complaints yet.

ditto!!

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I just terminated my dealings with Credit Solutions due to their NEGLIGENCE!!!!!!!!

They have made MANY mistakes in the handling of my account, which in turn caused the one credit card company I was in good standing with to CLOSE my account due to the NEGLIGENCE and ERROR made by Credit Solutions!!!! Also, one of my creditors has contacted me 3 times in the last week due to Credit Solutions not returning 6 of her calls!!!!!

Do your homework!!!! You can stash the same money into a 5% yield account that you would pay these folks per month and handle this mess yourself!!!! These folks have put me in a BAD situation now by not having that one good account in case of a car repair etc!!!!! I figured Im out 2K with Credit Solutions....Better early on than when I was in 5k or more.....

They are HORRIBLE at following up too! I have had 1 "monthly" follow up in the 8 months I was enrolled!!!! Buyer Beware!!!!!!!

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SUCCESS!!!!! ::Chasey::

I finally got my enrollment terminated and a 100% refund for unsatisfied services.

Tips on how to get your refund:

1) File a complaint with BBB and FTC

2) Call CSA and ask for termination of enrollment and a request for 100% refund. - Make sure you log date, time, and name of representative.

3) Be very persistent! Everytime I tried to call CSA and did not get a resolution to my complaint, I would immediately write it on the comments section for BBB.

4) Be very persistent! I repeat! I called them incessantly.. during my lunch break, driving to work, waiting in traffic and it got so crazy to a point wherein my daily 24 mile drive home from work would be spent talking to one of their reps. I've actually made friends there already, talking about the weather in Dallas, how work is, etc. just about ANYTHING to amuse me and keep me from road rage because Houston drivers are crazy!!!

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