Credit Associates advertises debt settlement services on TV and Radio. Are they a scam?
I suspect that this outfit may be a scam, and I want to hear from anyone who has experience with them. I saw this television advertisement recently:
A serious man in a business suit stares grim-faced at you from your TV screen.
“If your credit card debt is out of control, if you’re over your head in monthly payments,” he says, “there’s a secret the credit card companies don’t want you to know: If you have more than $5,000 in credit card debt, you have the right to settle that debt for a fraction of what you owe.
That’s bad news for the credit card companies, but (enter the hopeful piano music) its great news for you.” Grimface smiles for the first time.
“We are Credit Associates, and we’re offering you free information on how to virtually eliminate your credit card debt with a monthly payment you can afford. To see how much you could save, call now. 1-800-507-4987.”
“Don’t declare bankruptcy. Don’t consolidate. Give us ten minutes and we could save you thousands. After all, we depend on your success, and offer a guarantee so there’s no risk.”
You can see the video here:
The ad immediately drew my attention because it makes a very bold claim: “if you have more than $5,000 in credit card debt, you have the right to settle that debt for a fraction of what you owe.”
I don’t believe this is true. I am a real Alabama lawyer with years of experience dealing with debts in and out of court, and I can say that you DO NOT have the right to settle any debt without the creditor’s consent. And your rights to settlement – at least in Alabama – have nothing to do with how much debt you owe. Personally, I believe that it is just flat-out fraudulent for a business to make this sort of promise in order to get customers.
Of course, making false claims is not entirely new to the debt settlement industry. It is one of the scammiest industries out there. I have had numerous clients over the years who have been tricked into paying money for months and months to debt settlement outfits and still get sued years later by the very same creditors who were supposed to have been dealt with.
If you have hired Credit Associates or a similar debt settlement company and have questions about your rights, please call me at 251.272.9148. Don’t think that just because you’ve already started paying them that you are stuck with them forever. You have rights. Contact us for more information.
"Licensed in Alabama and Texas. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The use of this website DOES NOT establish an attorney-client relationship between Judson E. Crump, PC and you."
I called the number on TV (800 507 4987) at 0810 on Wednesday November 2nd and “Scott” answered. I told him that I am a vet and am working on programs for vet suicide prevention and asked him if he had a number for senior management so that I could see if their program could help our vets. he said: “no I don’t” and hung up. I called back almost immediately to ask for a supervisor. He then said: “stop calling this number, you are ruining my sales potential” and he hung up again. Clearly this is a scam of some sort. If there is senior management for this company and this is not a scam, check your recording for this day and this time and you can hear this jerk, Scott, for your self.
John Michael,
Thank you for sharing this.
I don’t believe Credit Associates is a scam. They do have some issues. My experience with them was that their policies had some negative effects. 1. They only negotiate with creditors when there is enough money in your account to pay what they expect to settle for. That in itself is not a problem, however, it does mean it can take a long time for them to settle your total debt obligations. Remember this for later.
2. They usually take about half of what they save you through each settlement. I didn’t have too much of a problem with that, as they have to make money, but half feels a bit steep.
3. (and this is the kicker that I said to remember for later. They send out cease and desist letters to all of your creditors. Couple that with the fact that it can take a long time for them to negotiate each settlement and you can run into trouble. I had a lot of debt by credit cards. After about 15 months with Credit Associates, three of my creditors decided to file lawsuits. They did that because they could not get in touch with me. I was not aware that I was being sued until I got notice from the court on two of them, and until after a judgement was made against me on the third account, because I didn’t receive notice from the court (probably my fault, not paying attention to my mail). I wound up having to pay those debts in full. I am still on a payment plan with one of the creditors, which will end in November of 2022 (this year).
I would say that Credit Associates helped me and did save me money. They negotiated several of my accounts for much less than half of what I owed. I joined with 11 open accounts. I paid two off myself. They negotiated lower payment amounts for 6 accounts, and I had to make agreements to pay the final 3 accounts due to the law suits.
My advice, if you decide to work with Credit Associates, is to tell them at the beginning to not send cease and desist letters to creditors, so you can know what is going on with them and possibly prevent lawsuits. If Credit Associates had the correspondence sent to their organization, and they communicated on your behalf with the creditors, that would be one thing, but to simply block all communication with them is just bad business.
John, you called a sales line. The poor guy gets graded on how many telephone calls he closes. Of course he didn’t want you to keep calling back looking for a phone number. That’s why Google was created. Bottom line, I don’t know if this company is a scam or not. But you bugging a sales guy doesn’t mean that it is
Asking to speak to a superior/supervisor is not bugging them. It’s a common sense request that should be able to be handled respectfully and promptly IF IT IS A LEGITIMATE COMPANY. Wise up.
I have been working with Credit Associates for about a month, and have started hearing from my creditors. When the first creditor called, I told them I was working with Credit Associates, and they said they do not work with debt settlement agencies. After that call, I called my account manager, who told me to ignore all calls from creditors and collection agencies, because “this will force them to contact us.” He said that creditors don’t want to work with anybody except me, because they want to keep me on the hook to them for the full length of the debt, so they can make the interest money. I am starting to have doubts about Credit Associates, which is also known as Worden Associates. Your thoughts?
Jack,
I am suspicious of ALL debt settlement companies, because so many of them are just outright scams. I would be glad to talk to you about your situation. Please call me at 251.272.9148. Thanks. JEC
I had the same experience with credit associates here in NC all creditors started calling me, writing me and even wanted to pass judgment and I was told not to respond. Credit Associates settled one account I owed over a thousand dollars for for just four hundred dollars. Next thing I know I get a call from another creditor saying that same debt that was settled was sold to another agency and I still owe the money and they assured me that Credit Associates was fully aware. I called credit Associates who says this happens sometimes and I need to just pay $250 monthly to settle my debts faster. If I had that to pay I wouldn’t need credit Associates to begin with. When credit Associates realize I couldn’t afford that they closed my account and left me back in a worst position cuz not only do I owe those debt I lost an additional $400. Do not use these people
Attorney Crump,
Thank you for your information. I wish you practiced in AZ. I was going to call Credit Associates and after reading what’s on your site, NO WAY! My credit was great and I was working until 3 doctors couldn’t find out why I was bleeding. After 5 surgeries I’m finally okay. I’m on disability my husband passed away and I’m in so much debt until/if I can work again. AZ has the most screwed up laws I’ve ever seen. I’m from CA and just trying to hang on to this place so my son gets something even though it’s not paid for yet. Thank you.
I’m not sure what “right” you have to not pay your bills.
That was my point. I’d love to know what legal authority they’ve got to back up that promise.
I used this company back in 2007. 1) the guy on the phone was so nice and helpful in getting the process started. 2). They told me to stop making payments and that they would contact all of my creditors and I wouldn’t get any collection calls but if I did to call this company and they would take care of it. 3) that’s where EVERYTHING went wrong. First off the first $7200.00+ in”convenient” monthly payments goes to the attorney firm. Which, if you think about it, was entirely self defeating. I needed these guys to negotiate down my debt but instead they wanted the attorney fee up front. Now, let me say this: they DID negotiate one bill down. They got the creditor to reduce the bill by about 1/3. They tell you that the money you send in goes into an account that has to be built up so that they can negotiate. Okay, that makes sense. But what they did was set up payments of about $800.00/month that was going to the attorney and not building into any kind of savings account. Also: while I am earnestly making payments that were stretching me thin to begin with I start getting collection calls. I got calls at home, I got calls at work, I got calls on my cell phone. I contacted credit associates to report the calls and the response I got was: tell the collection agents that they can’t do that. What? Aren’t you going to contact them? Send them a letter? The answer was no. To give you a little of the backstory I had just gone through a divorce, I had health bills and some credit cards. I was living alone and barely making it but I wanted to do as much as I could to make good on my debt. Instead I got a payment that was more than my payments HAD been but I figured I could suck it up and make the payments for 36 months and I would be debt free. I paid over $5000.00 to this firm and one ONE debt settled. I ended up filing bankruptcy. The company is a very barely legal, very unconscionable rip off, scam-my, slimy piece of crap.
Thank all who have reported on this scam. I talked to the company about helping me with my credit card problems about a week ago. I got a lot of high pressure sales talk from them. Even so I had planned to call Credit Associates today and accept their plan. Thank you all for saving me from making a huge blunder. I would normally keep away from high pressure tactics. But due to my situation I was going to give in and go with their program. Thanks to all for changing my mind and becoming Credit Associates’ next Fool.
I am going through about the same thing on how they told me to stop paying and that they will take care of it with in 3-6 months and they haven’t made one dime on my cards so I am calling tomorrow and telling them I want my money back and plus I had such a good score but now I am bad on my score it went down 200 points
I am so glad i read this before reaching out to “Credit Associates”. In 2013 I fell behind on a credit card because i was having to take care of my daughters father, whom had been released from prison. Then in 2015 I fell behind on a another credit card because i was taking care of my finance that had been involved in a horrible accident, which he later died in 2016. Not only did I lose him in April of 2016 on the 24th. which was his birthday, i also lost my dads mom in May of 2016, then my dad in October of 2016, and then a friend in October of 2016. Therefore, I have fallen behind on several credit cards and a student loan, but i have managed to save and continue to make payments on two credit cards and my everyday living expenses. THANK YOU TO ALL WHO HAVE POSTED ABOUT CREDIT ASSOCIATES !!!!!
Thank so much for your opinions
DO NOT USE THEM Tina, run girl
Thank you for the information, and thanks to everyone that gave their testimony. Do you work with states outside of Alabama? I’m in PA.
Thank you to everyone that has posted about Credit Associates. I was seriously going to call them, but after reading these comments, no way. I think they all are scams. I tried to reach out to another company that I received in the mail and while I was deciding they nagged and nagged me to sign on. That was a good clue right there, so thanks again to you all!
How about Clear One Advantage?
Never heard of them. But I advise all my clients to beware of ALL Debt settlement companies. You can hire a real lawyer for less money.
JEC
I just received a letter from this company telling me that my estimated credit card debt is $31,310.00 and that they could bring it down to a settlement of $12,524.00. Considering that I pay all my bills in full each month, have never had a single delinquent account and that I have a credit rating that floats between 820 and 840 (as high as you can get), I knew that this had to be some sort of a scam. A Google search brought me to this page. Let this be a warning to everyone who gets a similar letter.
Joseph,
I don’t personally know any attorneys in Louisiana who practice this sort of law. Try the attorney directory at http://www.consumeradvocates.org.
Hello I am a resident of NYC/N Y S I am a client of credit associates and through them I am a client of Net Debt and through them I am a client of Global Client Solutions.
Every Month Global receives a sum of $379.99 from my bank account.They now have over $ 2500.00 I receive a monthly account from Global but I am not able to connect with anyone from either Credit Associates or Net Debt to find out what is the status of this situation. I have left numerous messages with all of the numbers .with several individuals without a return call or any communication.
I am receiving threatening calls from collection agencies to my home ,my job & on my cell.
What can I do?
Luis,
If you believe that they aren’t performing as promised, I may be able to help you find an attorney who can assist you with that. My number is 251-272-9148. Look forward to hearing from you.
JEC
Don’t be stupid.
I spoke with an associate for this program this afternoon. I wouldn’t call it a scam but I do consider it a very bad idea. They ask for your checking account information. They create a savings account and you accept a four year contract to deposit X amount of dollars to this account for the next four years. In my case they wanted me to deposit $400.00 a month. This is becomes a slush fund to them. They keep 25% of the account monthly balance. Then they intentionally start defaulting on your credit card loans. In the process your credit rating is destroyed as you knew it. Then they cherry pick and negotiate a new settlements with the creditor after the account is sent to collections. I rejected the program. I can default on my loans on my own and renegotiate settlements without their help. I don’t need to spend 25% of a $400.00 automatically deducted from my checking account every month for four years. I crunched the numbers and for lack of better terms it’s a really bad f***ing idea. As I said I crunched the numbers. My current dept is 21K. Payments to CreditAssociates amount to 19,200. So I’m saving roughly 2000$ and risk letting my credit score hit rock bottom. I’m better off paying my dept down the honest way.
Thank You for putting information, I almost done it and new something didn’t add up.
You’re most welcome!
i have tried them for 3 years. They took 250 out each month and would pay themselves first and then pay 10.00 to my credit card company. I called one company and asked how much was paid after 3 years and they said they pay little to settle the debt. I discontinued the payments cause i have not finished or paid anyone in full. But they told me credit associates takes their fee first. Not happy and they have ruined my credit. On my credit report they have in collections which should not be. But the company said they can add that to m report even though i am paying.
I got behind on credit cards when additonal work ended due the selling of the company I worked for and the new owners reframed the business structure eliminating my position. I recently contacted Credit Associates and spoke with a representative to find out more information. The representative up front got my banking infromation then sent me an email with a signiature icon to click on. When clicking on the signiature icon it took me directly to another signiature icon where I was instucted by the representative to click on it, then another and another. Turns out I was clicking a signiature to a contract agreement I had not read. In reading the contract agreement afterwards I learned the contract’s first paragraph stated to read the contract before signing anything. That in my opinion is fraud. Another part of the contract claims that the funds submitted to the company remain in the sole control of the client. This doesn’t sound like what these other post here on your page are stating. The contract also states taht the client agrees to indemnify and hold harmless Company for any loss, liability or damages resulting from loss, use or misuse of third party information. Finally the representative clearly stated to me that I needed to stop making any payments to my creditors. However, the contract agreement states clearly “Client hereby confirms that Client has not been advised by Company to stop making payments to Client’s Creditors”. This is fraud in my opinion. I am certainly happy I ran across this site. I will be withdrawing myself from this organization that I personally feel is fraudulant within their scamming people into an unread contract. I wonder just how many people actually didn’t read the contract and realize the signed it first like I did?
It’s a total scam. A 100% lie. There is NO right to settle your debts as they claim. Plus, with the money that actor has made on this obnoxious commercial you would think he’d get his teeth straightened and get rid of those bags under his eyes…
Credit Assocaites is a total SCAM!!! DO NOT USE THESE WORTHLESS LIARS. They will lie to you about the price. It’s 25% of the amount you owe on the credit card. They do not help you. They help you continue to be in debt. If you like owing money to people that do nothing then these are the people you should do business with otherwise, RUN!!!!
Thank you to all of you posting and replying. I just got my 2nd letter in the mail and was thinking about it but thought I’d better Google the company first. It’s yet another fecking SCAM! 🤬 I’m recovering from a stroke Medicare pays 20%. Between the ICU, 3 more weeks in the hospital and 2 months in Rehab ….🤯. Spent my 68th BDay in the hospital. I’m learning how to walk again. Can’t babysit anymore. Credit cards are over $15,000. I’m basically paying a few $ over finance charges. There’s a lot of things one needs that Medicare doesn’t cover once you get home. Last month’s Amazon bill was $700 alone! Again, TYVM for posting and replying! I don’t need the stress of a scam !
MY 75 YEAR OLD MOTHER FELL VICTIM TO THEM, SHE WAS TO STOP PAYING HER CREDITORS WHILE THEY TOOK MONEY FROM HER CHECKING ACCOUNT. ISN’T THERE AN FTC LAW AGAINST THESE COMPANIES TAKING MONEY BEFORE THEY NEGOTIATE A SETTLEMENT?
This company is a scam front for another company called Netdebt which has some of the worse reviews out there. All they care about is enrolling you in some other company called United Member Plans. They charged me $200 up front and told me to stop paying my creditors overall. Thats illegal!!! Take it from a victim people! They ruined my credit!!!
MY 75 YEAR OLD MOTHER FELL VICTIM TO THEM, SHE WAS TO STOP PAYING HER CREDITORS WHILE THEY TOOK MONEY FROM HER CHECKING ACCOUNT. ISN’T THERE AN FTC LAW AGAINST THESE COMPANIES TAKING MONEY BEFORE THEY NEGOTIATE A SETTLEMENT?