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Has anyone ever heard of Lincoln Drexel aka National Debt Relief Center


k12503
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I can't seem to find out anything about this company. I called their number 1-800-600-9760 and asked for their address but would not give me the city they were operating out of. When pressed they gave me their address as 18552 McCarthur Boulevard. Does this name sound familiar to anyone?

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ca secretary of state - business entities

http://kepler.sos.ca.gov/list.html

LP/LLC Number Date Filed Status LP/LLC Name Agent for Service of Process

200825710064 9/11/2008 active LINCOLN DREXEL LLC LEGALZOOM.COM, INC. (C2967349)

LP/LLC

LINCOLN DREXEL LLC

Number: 200825710064 Date Filed: 9/11/2008 Status: active

Jurisdiction: CALIFORNIA

Address

27 SABLEWOOD CIR

LADERA RANCH, CA 92694

Agent for Service of Process

LEGALZOOM.COM, INC. (C2967349)

Number Date Filed Status Corporation Name Agent for Service of Process

C3204065 3/18/2009 active NATIONAL DEBT RELIEF CORP. LEGALZOOM.COM, INC.

C3173841 11/13/2008 active NATIONAL DEBT RELIEF PROGRAM SCOTT D SCHALLER

C2331545 2/7/2001 suspended NATIONAL TAX & DEBT RELIEF CENTER, INC. ALAN LURYA

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  • 4 months later...

Astiman - your statement that our company is a scam is not based on truth, rather your generalization of an industry as seen in other posts of yours "That being said, after some 35 years in the financial industry, I have yet to see a legitimate debt fixer/consolidator."

What is it that you do in the financial industry? Do you work for a credit card company perhaps?

Just because you have not come across any legitimate firms, or claim to not have come across any does not mean they do not exist.

I work for Lincoln Drexel and can attest that we are not a scam debt settlement company. We are aware that there are some firms that are not legitimate and are less than honest. We encourage all of our customers to investigate our firm - do the google search to see that we do not have people complaining we are a scam or rip off - you will not find it except for Astiman who I am certain was never a client of ours.

Our company prides itself on our reputation for outstanding customer service and our high ethical standards. In fact we use a 3rd party back end legal support team as an added protection for our clients. That support team is EFA Processing who has been recognized in Forbes magazine as a leading provider of credit and debt management services (here is a link to investigate): http://www.insidearm.com/go/arm-news/-efa-processing-honored-as-a-leading-provider-by-forbes-magazine/

I am not sure why the OP stated they could not get a city from the agent they spoke with but it is not company policy to withhold such information. We have several offices including the office in Irvine, CA; San Diego, CA; Durham, NC and Washington D.C.

As poster Deltadawn showed in her post we have a long history and an active and clean record with the Secretary of State in CA. where our company is headquartered.

So to blindly post that our company is a scam is not ethical nor honest.

Anyone needing debt settlement services should go to our website at http://www.lincolndrexel.com where they can find out more about our company.

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First, having a recommendation for InsideArm just doesn't cut it. They're a trade organization for "Accounts Receivables Management"...i.e., debt collectors. Kind of like Charles Manson getting good press from Horror Weekly.

Second, your frequently asked questions page does indeed answer most of the question a typical debtor should ask...but, as usual, neglects to mentions (or emphasize) the down side to the whole process.

Your firm uses the typical debt fixer process...."stop paying your creditors (you don't reallly say that out load", put the money in a savings account, then right before the magic time of "charge off", your company will step in and arrange "settlements"..." Will you settle all debts? No (again, your FAQ doesn't really make that clear). You'll only settle the ones you have collection contracts with. The others may sue. You'll be happy to give advice on what to do about that, but, you don't actual represent the debtor in court.

You mention tax consequences, but imply "oh gee, nobody has to pay those". You mention your fee.

You also talk about downpayments for your services. If I'm not mistaken the CROA makes any payment before service illlegal. (You might want to have your legal department...that guy...look into it).

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First - the recommendation is not from InsideArm as you suggest if you actually went to the link yoand read you would see that the recommendation is from Goldline Research (http://www.goldlineresearch.com/about_us):

"Goldline Research was founded in the early 2000’s to enable consumers and businesses to more effectively evaluate professional services companies."

Each year, using a rigorous proprietary research process, we investigate tens of thousands of service providers in numerous industries to assemble research guides featuring outstanding companies in those sectors. Our research guides are published under the title “The Most Dependable” and cover specific regions and sectors. Our research guides have been published in leading publications including local, regional and national magazines.

If you would like to learn more you can also visit: http://www.goldlineresearch.com/research_process

Secondly, Perhaps you confuse debt settlement with credit repair. We do not repair credit so are in compliance with the CROA regarding their definition of what is covered - see below, taken from section 403:

(ii) any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor; or

From the Consumer Credit Protection Act

§ 103. Definitions and rules of construction

(f) The term "creditor" refers only to a person who both (1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under chapter 4 and sections 127(a)(5), 127(a)(6), 127(a)(7), 127(B)(1), 127(B)(2), 127(B)(3), 127(B)(8), and 127(B)(10) of chapter 2 of this title, the term "creditor" shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge is or may be required, and the Board shall, by regulation, apply these requirements to such card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans. Any person who originates 2 or more mortgages referred to in subsection (aa) in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor for purposes of this title. The term "creditor" includes a private educational lender (as that term is defined in section 140) for purposes of this title.

-- It is not only good to point out the regulations but also understand what they say and who the apply to.

As we are not a credit repair company or a creditor as defined by these regulations CROA does not apply and therefore we are within the law.

Additionally you fail to point out that our FAQ page also states:

"Lincoln Drexel does not provide credit repair services."

And here is what our FAQ says about tax consequences:

What are the tax consequences?

You can expect creditors to report debts — either canceled or settled — to the IRS if the amount exceeds $600. You are also required to report this amount to the IRS in your tax return. However, the IRS will permit you to write off income from canceled debts up to the amount by which you were insolvent during that tax period. It is recommended that you consult your tax adviser in order to analyze your specific tax circumstances.

-- I do not see here that we imply that nobody has to pay taxes. It clearly states that one should consult their tax adviser to find out how this applies to their specific situation. Big Difference.

Again - it is nice how you try to use fear with people and not the truth. Perhaps being more honest and truthful will actually assist people coming here looking for help.

Not sure how you see that our FAQ downplays the negative impacts - we clearly state:

Will this impact your credit - yes

Can you be sued - yes

Can we stop creditor calls - no

Can creditors garnish my wages - yes

Do we then explain a bit of how we help with most of this - yes.

Oh, and you are right - we do not tell people to stop paying their credit card bills - usually by the time they call us they already have. And if they haven't they usually can not afford both and they choose whether to keep paying for 15-30 years on their accounts or enter our program and get out of their debt within the time frame that their specific state law allows for them to be in a program like ours. Some customers choose to do both - pay on their debt and set aside funds for settlements - it is their choice.

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The link you sited was to InsideArm. My point still holds. Having a trade organizationn dedicated to what you do site a "research organization" that doesn't have a clue about the true nature of your business saying you guys do a good job at it..is worthless, IMO.

Secondly, I was referring to the "Credit Repair Organizations Act" which says in part:

SEC. 403. DEFINITIONS.(4)

For purposes of this title, the following definitions apply:

(1) Consumer. -- The term 'consumer' means an individual.

(2) Consumer credit transaction. -- The term 'consumer credit transaction' means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.

(3) Credit repair organization. -- The term 'credit repair organization'--

(A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform (or represent that such person can or will sell, provide, or perform) any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of--

(i) improving any consumer's credit record, credit history, or credit rating; or

(ii) providing advice or assistance to any consumer with regard to any activity or service described in clause (i);

...[and excludes]

(ii) any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor; or

Since you guys are not a creditor, but you do assist in restructuring debt (i.e., debt settlement), I maintain you are covered by the CROA. Obviously, a court would decide.

In your other post, you mention that the you can do things an individual consumer cannot do because the "power" of debt settlement comes from your ability to (I'm paraphrasing, here) package multiple debts from multiple debtors together into a package and "sell" that package to the original creditor. I maintain that works just fine for the individual...if...you're able to sell your package to the specific creditor the debtor owes. If not, the consumer gets sued.

When a debtor comes to you with 17 credit cards, do you specifically spell out in the written contract you give them that you can settle these 10, but those 7 are not included and will probably sue?

Do you specifically state...you WILL be taxed on the "savings"? (Incidently, that includes the "less than $600 items). Saying "consult your tax advisor" doesn't really mean much to someone who can't afford one.

Not sure how you see that our FAQ downplays the negative impacts - we clearly state:

Will this impact your credit - yes

Can you be sued - yes

Can we stop creditor calls - no

Can creditors garnish my wages - yes

Yes, indeed, you do mention that in your FAQ. Do your advisors take the time to go over this is detail with each person who calls, or are they more of the "yes sir, we'll fix that right up for you...sign here" types?

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Astiman - wow, what an argument. So you work for a credit union - in one of their loan departments, or credit card issuing perhaps? This is where we see the most action in trying to scare people from using our services because they are afraid of us because we get settlements done and they lose money.

Also, there are over 2,000 debt settlement firms in the United States. And, they are being recognized as legitimate financial entities - in fact Connecticut is just instituting a licensing program for settlement companies - maybe that makes us more legitimate.

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willingtocope - it is nice that you actually use some logic to your questions and answers - unlike poster astiman whose posts (the ones I have read through) all seem to be snide comments instead of being informative and insightful. I suppose that is what you get on certain forums.

Please see my answers below to your last post.

The link you sited was to InsideArm. My point still holds. Having a trade organizationn dedicated to what you do site a "research organization" that doesn't have a clue about the true nature of your business saying you guys do a good job at it..is worthless, IMO.

-- Of course you are entitled to your opinion. And since it is your opinion I will not argue it with you.

Secondly, I was referring to the "Credit Repair Organizations Act" which says in part:

Since you guys are not a creditor, but you do assist in restructuring debt (i.e., debt settlement), I maintain you are covered by the CROA. Obviously, a court would decide.

-- If you look at the section section 403 it states "any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor..." - I provided the text of the Truth in Lending Act referenced. Our company does not fit the definition of creditor according to TLA - it is very clear since we do not lend money at all. Also neither TLA nor CROA discuss independent companies that are involved in restructuring debt - if you look at CROA item: "(ii) any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor;" This clearly states "creditor is assisting" - there is a distinction made especially with the reference to TLA about the definition of creditor.

In your other post, you mention that the you can do things an individual consumer cannot do because the "power" of debt settlement comes from your ability to (I'm paraphrasing, here) package multiple debts from multiple debtors together into a package and "sell" that package to the original creditor. I maintain that works just fine for the individual...if...you're able to sell your package to the specific creditor the debtor owes. If not, the consumer gets sued.

-- Here you take only one method of how we can make settlements. We also deal on on one with each creditor that someone enlists in our program.

I agree that often with creditor approved Credit Counselors, CCC or DMP programs those companies typically have the types of contracts you are talking about where they only handle certain creditors. that is not the case with our company - we handle everything from medical bills, business debt, credit cards, aftermath of repossessions - pretty much anything that can be settled. We will even take money out of our own pocket to provide a settlement if a settlement can not be reached with an enrolled creditor - it is in our agreement that customer signs! So, we have a vested interest in making sure we settle each account or it costs us money!

Again, we do not have contracts with lenders, we receive no compensation from them and in fact they would prefer it if we did not exist (I am sure other comments will come from posters stating the same wish so no need to make them).

When a debtor comes to you with 17 credit cards, do you specifically spell out in the written contract you give them that you can settle these 10, but those 7 are not included and will probably sue?

Our contract has a list of many disclosures that the customer reviews and initials next to each. These disclosures state that we can not make a creditor settle and they have very right to sue. What is not being stated here is that it is not in the interest of the creditor to sue - it cost the creditor money and usually the OC sells the debt to a JDB where they will make less then they would in accepting a settlement - that is why creditors do settle.

Do you specifically state...you WILL be taxed on the "savings"? (Incidently, that includes the "less than $600 items). Saying "consult your tax advisor" doesn't really mean much to someone who can't afford one.

-- Yes, another disclosure states the the amount of debt that is forgiven will be considered income by the IRS and that the creditor will issue a 1099 as required by IRS code for any amount over $600 - the IRS does not require a 1099 for amounts less then $600. That does not mean that the customer is permitted to ignore those amounts and they should truthfully list those on their tax returns - but since we do not file tax returns or assist in tax advice we inform these customers that they should seek the counsel of a tax attorney or CPA.

Yes, indeed, you do mention that in your FAQ. Do your advisors take the time to go over this is detail with each person who calls, or are they more of the "yes sir, we'll fix that right up for you...sign here" types?

-- Each rep is supposed to follow company guidelines and review these issues with the customer. Additionally these issues are all covered in our agreements that the customer acknowledges and authorizes. Reps can be terminated for not following company guidelines and of course we can not control if the customers actually reads the agreements before signing - they are provided ample opportunity to do so and they even have a 5 day right to rescind (longer than most states 3-day cool off period).

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To LDShane:

I was curios to DeltaDawns posting of the LLC information, primarily the address as I am familiar with this area and the street, which is not a business address but a Town home.

I checked the Secretary of states information that DeltaDawn listed and the info seems to be correct.

The legal address for the company is

27 SABLEWOOD CIR

LADERA RANCH, CA 92694

If this is such a great big company then why is there no business address for it?

Out of curiosity I pulled the Tax records on this property, which by the way is public information for the Record.

The property, and I will not reveal the owners name is up for Auction. The default was recorded on 1/22/09.

You indicated you work for this company.

My professional suggestion. Start looking for a new job.

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Everything to do with this organization, as with most (if not all) debt "fixers" smells fishy.

Edited to add, LD Shane: I work at an organization that has a valid business address, whose property is not up for auction, and am, after 21 years in this organization, not one of the 'workers' or newbies. You might be surprised if you knew what position I have, but no way will I tell that to a sleazy, questionable "debt fixing"

organization such as yours. I'll put my professional reputation up against your organizations, any day.....

Edited by astiman
Trying to expose the myth of "debt fixers"
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-- If you look at the section section 403 it states "any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor..." - I provided the text of the Truth in Lending Act referenced. Our company does not fit the definition of creditor according to TLA - it is very clear since we do not lend money at all. Also neither TLA nor CROA discuss independent companies that are involved in restructuring debt - if you look at CROA item: "(ii) any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor;" This clearly states "creditor is assisting" - there is a distinction made especially with the reference to TLA about the definition of creditor.

As is often the case with laws, the language used is somewhat convuluted...after all, they're written by lawyers with the primary intent of keeping lawyers in business....but..

Yes...your company is not a creditor.

The CROA item I quoted excuses creditors from any ramifications of assiting a debtor with restructuring a debt.

Your company is not a creditor...therefore your company IS NOT EXCUSED from any ramifications of assisting a debtor in restructuring (i.e., "settling") a debt.

Your company IS covered by the CROA. If you charge any fee before actually settling a debt, you are violating the CROA.

Find another job.

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I have yet to find a debt settlement company that complies with the Florida laws regulating the industry. In short, if the settlement company were to comply with the laws of Florida the business will likely not be profitable. Georgia has a very similar law.

Just review what happened to Debt Relief USA.

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He filed 4 class actions against 4 different debt settlement companies (he did not disclose which ones)

But

1 was contrite and refunded everything they took from entire class.

Other 3 debt settlement scam companies are "digging in" for class action fight.

Which is full employment plan for lawyers.

Lesson: Debt settlement companies nearly always break the law and are all scams!

You should only deal with them if you want to be ripped off and need you just someone to sue later.

But there are plenty debt collectors out there to sue.

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  • 1 year later...

Not sure who you are but LINCOLN-DREXEL IS a SCAM Company, they treat their employees like garbage, they hire you with the whole "we are a family oriented company" we are so happy to have you on board" I know this for a FACT because I've personally seen the letter. My husband was a top producer and SAMMY, the Pakistani or where ever he is from, team manager refused to give him his check that was owed to him, it's a sweat shop phone room, I've been there personally and have seen the working conditions. I would NEVER work with a company that lies to their employees, doesn't pay them on a timely manner (They wait till about 7-8 p.m. after banks are closed) and treats clients and employees like garbage.

STAY AS FAR AWAY from this company as you can.... RUN....

UNETHICAL treatment of employees is a good way to know how they would treat YOU!!

Outstanding customer service you say? Sammy is an unethical poor excuse of a human being......FUNNY, but, I'm not laughing. They are located on McArthur across from John Wayne Airport, right behind IHOP and by the banks.....Report to the labor board and Better Business Bureau letters are next....

Your better off doing the work yourself, if you have the time and resource knowledge, you do NOT need a garbage company like LINCOLN-DREXEL to steal your hard earned money....

Edited by AikidoGirl
needed editing typos
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  • 11 months later...

I also can vouch for the Unethical treatment of employees.

I was employed at Lincoln Drexel for a year an a half, everything started out amazing. I was getting raises and excellent reviews.

Then I missed 1 day of work when both partners were on vacation, and they suspended me for 7 days.

When I returned, the partner I worked with 60% of the time, told me that I was not allowed to do any work for or even talk to the partner I worked with 40% of the time, Which, would have been fine, except he failed to tell his partner about this agreement. The 40% partner kept giving me work, and I kept doing it, fearful that I would lose my job if I didnt... the 60% partner witnessed the work being done, and seemed to encourage it.

Then one day the 40% partner asked me to format a word document. I did it, it took 5 minutes. The 60% partner witnessed the work being done, and didnt reprimand me.

What ensued after, I will never get over.

That night, around 8 pm, I began receiving harrassing text messages from the 60% partner. He said I was suspended and 'dared' me to come back to work at the end of the suspension. He insulted the 40% partner in the texts (which I eventually stopped responding to) and called me 3 times. He harrassed me until 11pm that night, despite my lack of response.

Shocked, I called a lawyer and got advice on how to handle the situation.

I attempted to file a complaint, however the harassment wasn't under a 'protected category' so I was not able to proceed. I still notified both partners that I attempted to file a complaint.

When I returned to work, the 40% partner said that my role had changed, that I was being 'promoted', and that I would be interacting solely with the department managers and not with the actual agents. He said they would give me my own office to complete my work in.

They gave me a windowless office in the corner, my desk faced the wall. None of the agents were allowed to talk to me, and they moved a filing cabinet in my office that blocked the view out the door. I was not allowed to interact with the agents at all. They asked me not to email the agents directly, or correspond with them verbally....all of this was verbal though (and wouldnt hold up in court) They gave very very little direction to 'expand my department' and my role changed mostly into handbooks and test for the agents. From that point forward, anytime my work involved corresponding with the 60% manager, he would not cooperate. It became a joke.

After 4 or 5 months of this, they had concluded (in their own 'internal investigation') that the 60% manager was not harrassing me since it was an isolated incident. I attempted to file a complaint for retaliation but was unsuccessful because I was the only one in my department, they couldnt determine that this behavior was not a 'department policy'. Shortly after, they laid me off.

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