Credit Solutions of America – Sued by Florida Attorney General

Credit Solutions of America is another of a long line of Debt Settlement companies currently in hot water with State Attorney Generals throughout the Country for unfair and deceptive business practices. As is almost always the case, the unfair and deceptive practice stems form the structure and the amount of fees charged to consumers upfront.  In the case of Credit Solutions of America, after 17  months in their program, nearly 50% of client payments would actually go toward their fees.  (What a Deal huh)

Credit Solutions ScamSure this information might be disclosed in the contract, but as with most of these programs, the telemarketer/salesman that talked the consumer into signing up, likely didn’t spend much time explaining this aspect of the program.  Instead they tend to focus on telling the consumer how blissful their life will be once they start making payments to them.  It usually isn’t until 6 months down the road, that the consumer realizes, none of the promises are coming true and most of their money has been stolen in upfront fees by the settlement company.  That is typically when the complaints reach the Attorney Generals Desks.

Credit Solutions has also been sued by the Attorney Generals in Texas, New York and Missouri as well,  alleging essentially the same deceptive practices of charging in full for services that they do not always perform.

The BBB Reports over 1700 consumer complaints in the last 3 years agains Credit Solutions of America and gives them an F Rating.

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You can read the allegations of the NY Attorney General by Clicking Here.

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About Damon Day

As a Debt Coach and a Financial Advocate, I have saved my clients Millions of Dollars by exposing the debt relief scams that other consumers fall victim to. I work directly for my clients to create custom debt relief strategies based on their own unique circumstances. Consumers who speak with me first, come out far ahead of those who don't, every single time. Guaranteed. +Damon Day

24 Responses to “Credit Solutions of America – Sued by Florida Attorney General”

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  1. Chasity Halbfass (1 comments) says:

    I too was “client” of credit solutions. After being with them for almost a year I realized they were bogus because they didnt follow through with anything and I was out of the money I had given to them in that time. In the meantime I lost all the jewelry my husband had bought me including my wedding ring. It was heartbreaking to lose that ring and I still have been unable to purchase a new one.

  2. Damon Day (116 comments) says:

    Hello Chasity,

    I am sorry to hear that. Unfortunately you are not alone in your experience. If consumers knew how the vast majority of these programs operated, they would be appalled. For most of these guys, it is just sell, sell, sell. They make their money on sales not in service.

    Was this situation fairly recent? Have you been able to resolve your debts with your creditors?

    .-= Damon Day´s last blog ..Debt Settlement USA – A Not So Glowing Review =-.

  3. Janet M (1 comments) says:

    I enrolled with Credit Solutions after a year. When I told them I wanted to cancel the program and give me back my money they said that they couldn’t. I had explained to them that they have done absolutely NOTHING for me and have only debited my account of $98.00 for 18 mos. With no results and about $1800 in the hole I feel hopeless.
    They made me feel that this is what I signed up for. That if I cancel now they wont be able to settle any of my accounts and I will lose out on the $1800 service fee I already paid. So I am still enrolled.
    What do I do now?

  4. Damon Day (116 comments) says:

    Hello Janet,

    Unfortunately you have found yourself in the same position that 100’s of 1,000’s of consumers have found themselves in after paying a lot of money in fees to these types of programs. Essentially it sounds like they are blackmailing you. Now that you have paid them 1800 of the 2400 in fees that they are ripping you off for, they are holding that money over your head and saying well, if you cancel now, we won’t give you your money and we won’t help you. It is absolutely incredible. Do you wonder why these guys have been sued by at least 4 state attorney generals.

    What state do you live in?

    Recently I have been able to get some of my clients that were in similar situations with credit solutions at least a 50% refund. I know it isn’t the same as getting all of your money back, but at this point, it is important to recover whatever we can and then focus on getting this debt paid off. I absolutely would not continue to work with a company that essentially charged you a ton of money, and then holds it over your head as blackmail. At the very least, they should have offered to stop the fees so you can focus on getting your debts settled.

    Go to the consultation link on the top bar on my website and schedule a consultation with me. I want to get more specifics on your situation and we will see if we can get at least a good portion of your money back and then create a strategy to satisfy your creditors as quickly as possible.

    .-= Damon Day´s last blog ..Debt Relief USA files Bankruptcy – Clients get Burned =-.

  5. Aris (1 comments) says:

    Is this company the same company at “My Credit Solutions?”

  6. Damon Day (116 comments) says:

    Hello Aris,

    I don’t think so. I did a quick search for “my credit solutions” and they look to be some sort of credit repair company. I don’t know anything about them, but I would proceed with extreme caution if you are thinking of paying them to fix your credit. Again, to qualify, I don’t know anything about “My Credit Solutions”, but on their site it looks like they charge between 600 to 1200 dollars to fix your credit. In my experience most credit repair programs will do little for you.

    The other thing I found is that they have some sort of training program to teach people to set up their own business repairing credit, possibly under the my credit solutions umbrella. That is a huge red flag for me. That tells me, there are probably a whole bunch of people out there masquerading as credit repair specialists, when the reality is they just paid these guys a few hundred bucks for a training program. So be very very careful before you pay anyone to help you repair your credit.

    Also keep in mind, there is nothing they can do for you, that you can not do for yourself when it comes to repairing your credit.

    The “Credit Solutions” company that I am referring to in this article is a Debt Settlement Program. With such a generic name it is easy to confuse them.

    .-= Damon Day´s last blog ..Debt Relief USA files Bankruptcy – Clients get Burned =-.

  7. Susan Martin (5 comments) says:

    I’m reading all of this with interest. After paying fees to credit solutions for one year, I am headed to court tomorrow, and have been told that there is nothing they can do to help me without $2,000.00 up front to my creditor. I WILL say that they resolved one account for me, but I had to pay $1,000.00 per month to do it for 4 months. So that done, they now say – well, that’s the money you’ve saved yourself through our program outlines. I STILL had to pay the $264.24 fee as well as the $1,000.00 per month, so with no savings left, I don’t have the $2,000.00 up front for another creditor, so I am being sued.

    By the way, as far as the fees go, it began in the $300.00’s per month. I’m getting out, there’s got to be another way. There’s no excuse for my getting in debtt, but I feel I chose the wrong path to get out. The harassing calls continue, and now I’m getting sued for the first time in my entire life. My sister has gone with Green Path Financial Counselors – is this the better way? I just want to get out of debt and continue saving and move on! I am employed, in the State of Michigan.

    • Susan Martin (5 comments) says:

      It has been a year since I wrote the above comment. Credit Solutions have good salespeople, that’s for sure. I did my homework AFTER losing most of my money in upfront fees, being sued, and being more in debt than when I asked Credit Solutions for help. I am now enrolled in a Michigan non-profit financial counseling program (GreenPath). I have 3 accounts paid off, and they are working on the remaining two. HOWEVER, I was sued by a company that “bought” my debt from DiscoverCard. I did not realize that debt recovery companies (lawyers) exist that “buy” debts for pennies on the dollar, and then pursue the debt legally in court. I was sued, and was so frightened I settled with the company out of court, and since Greenpath can’t help me with a court judgement, I am now paying this company a very large (to me) amount every month…
      When I wrote the letter above in January 2010, I had no money and CreditSolutions said they could not help me and suggested I get a lawyer – WHAT???!! Credit Solutions had assured me that they had a very good relationship with the company that was suing me, and not to worry about it at all. This is what you need to know…The attorney based debt recovery program told me that they advise people not to get involved with them, and that they will not deal with them at all…I was shocked. Also interesting is that once I signed with GreenPath, I received letters from my existing creditors that they would work with them to help me with my debt. All debt collection calls have now ended. Most states have non-profit companies that can help you, or if you are near Damon Day & Associates, that is also a good option; they will advise you with the correct steps to take. When I called Credit Solutions, all they required of me was that I had a full time job and a checking account; they also bragged about an award they received from J.D. Powers & Associates. They DID receive one, but it was for sales – yup they have very convincing sales that’s for sure… I didn’t do my homework before I took action – so I advise all of you to do your homework BEFORE you get involved in any company. Greenpath has a BBB rating of A+; Credit Solution has an F rating. Best to all of you….

      • Susan Martin (5 comments) says:

        Notify me of followups via e-mail & thank you for providing a sounding board for all of us that are drowning out here…

  8. mik malone (2 comments) says:


  9. mik malone (2 comments) says:


  10. Damon Day (116 comments) says:

    Hello Susan,

    I am sorry to hear about your experience. Unfortunately this is fairly typical with programs like credit Solutions. The irony is that if they hadn’t been charging you 200 to 300 a month in fees over the past year, you would actually have the 2,000 available to settle and avoid this lawsuit. This is the very reason that I speak out against these programs that charge all of these fees upfront. They put you in the very likely position of getting sued before you can save up enough money to settle your debts with your creditors.

    Now you are stuck. You are getting sued and they won’t even assist you with that. If you quit they will want to keep the 2500 or so that you have already paid them in fees. However if you don’t quit they are going to charge you another 2,000 or so in fees over the next year and for what? To get sued again and get no support.

    Unfortunately they have put you in a bad position with no good options. If it were me, I would cancel the program immediately before they draft another 264 out of your account. Then I would write them a letter demanding a full refund. You are not likely to get it, but many of my clients have had success obtaining at least a partial refund.

    Credit Solutions has been sued by Attorney Generals in at least four states and they are in quite a bit of hot water. If you are not happy with their service, it is in their best interest to at least refund some of your money, rather then have you file another complaint with the FTC, the attorney general in your state and in the state that Credit Solutions is located in.

    That will at least stop the bleeding and correct the mistake of hiring these guys.

    Now to address your more immediate concern. It would be very hard for me to Monday morning quarterback this thing for you, especially since you are going to court tomorrow. However, if you can at least delay a judgment that would be good.

    I normally take Sundays off, but given the circumstances, I will do a quick consultation with you to help you prepare for your hearing tomorrow. Please click this link Consultation to set something up this afternoon.

    Credit Solutions has really put you in a bad spot with not much room to work with, but there is usually always something that can be worked out with the creditor, even if you have to take what is called a stipulated judgment. I can cover it all with you in the consult.

    As far as green path financial goes. They are a CCCS program and unfortunately because of what Credit Solutions has done, you are not in a position to take advantage of a program like that because you are already at least a year behind on your debts and currently involved in a lawsuit. Your best bet moving forward is to stop paying all of these fees to Credit Solutions, focus on resolving the immediate lawsuit situation, and then creating a plan to try and settle with the rest of your creditors as quickly as possible before any additional lawsuits occur.

    I am sorry my news isn’t better, but at least your story can serve as a warning to other consumers to never enroll into a debt settlement program that charges large fees and charges them upfront. If you do you will find, that when things go south, you are on your own because they have already been paid.

    If you can set up a consult today Susan, I can do my best to help you prepare last minute for your hearing tomorrow.

    .-= Damon Day´s last blog ..Debt Relief USA files Bankruptcy – Clients get Burned =-.

  11. Damon Day (116 comments) says:

    Hello Mik,

    Ya, if you are wanting to get your money back, the first thing you need to do is cancel their program in writing and make sure they will not be drafting any additional money out of your account. Then you will need to write them a letter explaining why you are not happy with the service and what you would like them to do. You should not ask for interest on the money as you will certainly not get it and they are not contractually obligated to give it to you.

    In fact when you look at their contract, they are not even contractually obligated to give you a refund at all. They certainly write their contracts to favor them, not the consumer. So according to their contract, they can charge you thousands of dollars, do nothing for you and just keep the money.

    However that being said, I have seen Credit Solutions issue partial refunds to consumers that were not happy with the service they received. So it is worth a shot to write them a letter and see if they are willing to do the right thing based on your experience with them.

    Please keep me posted on the outcome.

    .-= Damon Day´s last blog ..TARF – The Association of Red Foxes =-.

  12. Susan Martin (5 comments) says:

    Thank you Damon. I am not going to bother you on a Sunday, but I feel better that your initial advice is exactly what I am going to ask for tomorrow – A Delay In Judgement. I have already sent a cancellation email to credit solutions, and transferred any $ out of my account. This is a small town and I deal with a local bank, so I will stop there and reverese the electronic transfer to CSA; I have the paperwork all ready. I guess I have all my ducks in a row for tomorrow, I have correspondence dating back to March, 2009 that it looked like I was going to be sued, and asking CSA for help on my behalf. I willl let you know tomorrow evening what happened in court.

    The scary news that you have given me is that I might not qualify for other programs because CSA told me to stop paying my credit cards. I guess January is going to be an interesting month for me~!!!
    Stay tuned!!!! & Everyone, listen to Damon – stay away from Credit Relief Companies that sound too good to be true…

  13. Damon Day (116 comments) says:

    Hello Susan,

    Ok, I wish you luck tomorrow. There are a few different possibilities depending on what has been done thus far. If you tell the judge that you have been trying to settle, and the company that you hired charged you so much in fees that they were unable to come to an agreement, you may be able to get the judge to send the case to court mediation which would buy you some additional time to try and come to an agreement with the creditor.

    At this point, you will likely find that any sort of an agreement is going to come with what is called a stipulated judgment. That is where you agree on a settlement either in lump sum or in payments but you also agree to allow the creditor to enter a judgment against you. This judgment will essentially be an insurance policy to insure that you make the payments to the settlement as agreed. If you do, then the judgment will go away. If you do not, then they can move to enforce the judgment either through wage garnishment, bank levy etc.

    Please keep us posted on the outcome tomorrow. I have some resources that I can refer to you to help you clean up the mess that credit solutions created. Go ahead and set up a consult with me sometime next week so I can get the specifics and help you put together a plan to get the debt off your back as quickly as possible.

    .-= Damon Day´s last blog ..TASC – Debt Settlement Lobby or Protector of the People? =-.

  14. Susan Martin (5 comments) says:

    Hello Damon,
    Well, for the first time in my entire life, I stood in front of a judge today, and I was petrified. I did not have an attorney because I did not know what was going to happen, I’ve never been sued before. I did receive a delay in judgment to see if I can work this out with my creditor. The funny thing, the attorney for the party suing me gave me lots of advice, and numbers to call for help. Yesterday, as I mentioned, I canceled my association with the program by email. They answered by saying that I had to call them – this is the funny/ridiculous part – first they asked me what account I had to go to court over, to which I answered, I think you know the answer to that question. Then, they asked me if I was going to get an attorney, and I told them that was confidential. But, here’s the real deal breaker – they actually suggested that I drop the account I am being sued over from their program, and they would just continue with the rest of the accounts. If I had any doubts (which I didn’t) – this took the cake. I have closed my checking account, am getting ready to cancel power of attorney for this company with all accounts. Yes, I AM getting an attorney – one I trust very much, because I want everything that I don’t know about to be covered legally. Everyone reading this – Please learn from my experience – work things out yourself with your creditors, or get an attorney you trust. I need an attorney because I am now 1-year behind on these accounts as instructed by this Company – I will keep you all posted!!

  15. Damon Day (116 comments) says:

    Hello Susan,

    Thanks for letting us know how things went. I am glad you were able to get a continuance to get your ducks in a row on this account. I am certainly not surprised that credit solutions offered to keep charging you fees for your other accounts and were more than happy to get out from under the account that you actually need help with right now. I am glad that you have found someone to help you out. As nice as the attorney was for the bank, I would be a little cautious of the people he suggests that you call for help. Legally they are required to produce the best outcome that they can for their client. So it could be a little conflict of interest.

    If you would like me to take a look at your current situation and offer some suggestions about what you should do moving forward, feel free to fill out a consultation request. I can point you in the direction of some resources to help you dig out of the hole, that are likely less expensive then hiring an attorney, unless it is perhaps a friend of yours doing it for a highly reduced cost.

    Either way, let me know if I can be of any help. Also please keep me posted on your results at obtaining at least a partial refund from credit solutions. I may be of some benefit there as well, as I have helped a few clients obtain partial refunds from them.

    .-= Damon Day´s last blog ..Debt Settlement – FTC could put 84% of Companies out of Business! =-.

  16. Jessica (2 comments) says:

    Hi I have signed up with csa and they did settle one of my 2 acct but I did most of the work. I took all the harrssing phone calls and they settled with me the same day csa called them. Csa walked me through my first payment and that was it. I made the last 2 payments on my own without csa cause they won’t return my phone calls. I tried to cancely agreement today and pull out my 2 nd acct ( I started paying them again) and they said I couldn’t cancel I still owed them $ 5000. They were very mean and I refuse to pay them any more $. They hardly did a thing foe me. I did most of the work. Help. What should I do. I put a stop payment on them. Thanks.

    • Doug VanArnsdale (1 comments) says:

      I was an employee of this company for many years. You do not have to pay, they will not take action. Threaten to file a BBB complaint and put a stop payment on your account. That will work for you. Ask to speak with Luyen Lee – He is in charge of complaints, heck, you might even get a refund =D.

      • Damon Day (116 comments) says:

        Thanks for sharing your thoughts. I can appreciate the humor in using the name Doug Van Arsdale, but for the record I just want to clear up for readers that Doug Van Arsdale is the founder of credit solutions and obviously not the ex employee that made this comment. While I certainly respect this commentors wish not to use their real name, I don’t want any readers to be confused.

    • Damon Day (116 comments) says:

      Hello Jessica,

      Sorry for the delay in responding, there has been a lot going on lately. I would say you did exactly the right thing. CSA and any other debt settlement companies that front loads their fees, in my opinion are a total fraud. Again that’s just my opinion, but when a company collects fees on 100% of clients, and only has success ratios that at best are less than 30%, that is a scam and a fraud pure and simple. The settlement companies that do that, can put a happy face on that all they want, but at the end of the day, most of their clients pay money and do not receive the service that they paid the money for.

      I doubt CSA will go after you for this phony 5,000 they claim that you owe them. If they did, I am sure there will be several Attorneys General in various states as well as many news reporters that would like to know that a debt settlement company is going after a consumer for un earned fees. Especially with Federal Legeslation about to become law that will put most of these guys out of business. However, that being said, I am not looking at your contract and I don’t know the specifics of your circumstances, so I can’t just blindly advise you to blow them off. It is criminal the way most of these outfits write their contracts. They are designed to trap people and suck money out of them.

      Please update me with your current situation.

  17. Doris E Smith (1 comments) says:

    I am being harassed with phone calls from a company calling themselves America Debt Solutions. They say they received my application from an online survey. Ah, no. I am not apt to give out any personal information anonymously. I am not in any trouble debt-wise and never have been. I have an excellent credit rating. How do I get these folks to stop calling here? Shall I threaten to report them to the Attorney General’s Office? I am on the do not call list, btw.

    • Damon Day (116 comments) says:

      Hello Doris,

      I know these guys can be a pain in the you know what. Yes if they call again, then perhaps you should play along to get as much information out of them as possible. Get the name of the person that is calling you, first and last. Make sure you get the name of the company. Ask them what state they are located in. Then ask to speak to a supervisor or a manager and get his/her first and last name. At some point, if you keep asking questions they may just hang up, but the point is to learn as much about them as you can so you can figure out where they are located, do some further research and file a complaint if need be with both the FTC and the attorney general in your state and state they are located in.

      If you can get a supervisor on the phone, then tell them under no uncertain circumstances are they to call you again. You have his name, the name of the company, the address, the phone etc, and if you get another phone call from these guys, then you will not hesitate to start reporting them to all relevant agencies including the BBB and rip off report.

      Hopefully that will get them to stop. After all, they are just wasting their time and money by calling you, so it would be in their best interest to actually take your number off their list.

  18. Graham (3 comments) says:

    Yes, I agree with you. Credit Solutions has the worst reputation in the debt settlement industry. I still don’t know why people can trust this program. I will share this information to all my friends.

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