Capital Debt Relief Inc. is a debt settlement company that we have had several requests recently to review. In several requests, it was stated that consumers could not find any information about them other than what is at their website. After digging in ourselves, we had similar results…
The Capital Debt Relief website states the name of the their company as Capital Debt Relief Inc. based in Margate Florida. However, the Better Business Bureau has no record of such company. After doing some research we discovered the reason there is no record with the BBB is because Capital Debt Relief Inc. is actually Capital Debt Relief, LLC and is a brand new company incorporated in February 2009. Because they are a brand new company there is no way for us to do any real evaluation of their performance.
A standard word of caution to anyone considering the services of Capital Debt Relief or any company operating in the debt consolidation/debt settlement industry with less than 5 years of business history. Companies in this industry come and go frequently, so it is recommended to work with a company that has been in business at least 5 years, 10+ is even better. The longer they have been in business, the more their true colors show (so to speak).
{ 15 comments… read them below or add one }
Due to my wife being diagnosed with cancer, she had to cease her employment leaving us in a bind in getting our monthly bills paid. All my credit cards up to this time were paid monjthly up to date. I contacted this company looking for assistance and assured me that they could put me on a program that would lower my monthly payments, lower any interest rates and remove any penalties that might be incurred for non payment so I signed up to their program.
I was told to stop all payment to these creditors and one monthly payment would be made to them instead. They would have power of attorney to deal with these creditors, that they would contact my ctreditors and let them know about this program.
That was four months ago.. I am receiving phone calls from these creditors constantly at all hours of the day and night asking for payments and telling me that they have received no information whatsoever that I am on this program and that no proposals had been sent to them by Capital Debt Relief.
I am now told by Capital Debt Relief that my payments to them are put into a special account, and when there is enough monies in the account to pay my creditors, only then do they offer them a proposal to reduce my debts and interest rates.
What I don’t understand is if these people are not agreeing to a proposal in the beginning, all of this interst and penalties aere adding up to make my original debt to each creditor even bigger!
Some of the companies have offered to deal with me personally to reduce the interest rates, erase any penalties and even settle for less than the original amount owed. Capital Debt Relief is telling me “NO” “Do not send them payments or agree to any deals because it then prevents them from getting a better deal through them. In the meantime I continue to get phone calls every few minutes asking for payments.. At this point, I don’t know what to do.. I may have to get legal assistance (which I can’t afford) to get payments made to Capital Debt Relief returned and settler my debts in another manner..
Tom:
From your comments above, it is clear that you don’t have a good understanding about the program in which you are enrolled. A debt settlement program is for those people that can no longer make their minimum monthly payments to pay off their debts without borrowing additional funds or putting themselves into further financial hardship. If that is your case, then the advice you are getting from CDR is correct. Once you are enrolled in the program making payment arrangements with your creditors directly can jeopardize negotiations and possibly cause you further problems with that creditor. Keep in mind that each creditor feels they are entitled to all the money you have. They don’t like to hear you are putting money aside to take care of all your debt responsibilities. If you are in a debt settlement program, you will continue to get calls, perhaps during the entire duration of your program. The calls will come and go, and you can choose to answer them or not. Hopefully you were told all of this up front by the individual that enrolled you. If you have the funds to make all your payments and pay more than your minimums, then you may have been able to accomplish more and get out of debt faster all on your own.
I too have decided to use this company. I was current on all my things as well. Now im in the same boat as Tom. Beware of this company. I am currently trying to reach this company, but i was informed that today was a holiday. Go figure!
Yes, the ChoiceREVU Editor was correct.. I did no have a complete understanding of the program when I first enrolled. I had thought that they would immediately make proposals to my creditors and I was wrong. Apparently they do not make any proposals until you have enough money deposited to them to satisfy any of the proposals, which makes sense.. But what I wasn’t aware of was that my agreement to pay them 16% of your total debts is taken out of your payments each month prior to them having enough money aside to pay the creditors.. A major portion of the monthly payment that I make each month goes to the company (Capital Debt Relief) and a small portion put aside to satisfy debts.. Example: Over the past six months I have paid $5443.88 to this company.. At present, there is only $1500.00 set aside to pay to the creditor.. They want to be sure they get paid first before setteling your debts.
However.. I did learn today that you may proceed to settle any of your debts if it’s possible, and that debt will be removed from the list held by Capital Debt Relief.. but more than likely, you will still have to pay them the same amount calculated on the original list of debts..
Hope this will help others who may be looking to go this route rather than doing it on their own..
Tom..
I believe I have been scammed by Capital Debt Relief. It started the day I called them after seeing their 800 number on TV. Some fast talking lawyer told me that my only payment was $59 a month for their service fee. My payment is $277 a month and after their service fee,($59), retainer fee,($141) and other fees, $76 goes toward my debts. I also was told that in 2 months the phone calls would stop and they haven’t. I also was told that they would have a settlement fee with my 4 creditors by 2 months time. I tried to reach them many times and either got hung up on, got a busy signal or was told to leave a message.
They don’t understand that the reason we contacted these vultures is because we have no money and yet they took advantage of my wife and I. The BBB is obviously protecting them and I guess I’m guilty of not reading the fine print but I confided in the $2 lawyer who sold me the bill of goods. I hope many more people complain and the BBB wakes up.
I heard about this company through the radio. I called them to inquire. they are just about to explain to me what they’re about.
I am grateful to all of you who posted your experiences as I now have some idea of what I am dealing with just by calling the number. I will likely not use them on account of the suspicious way to attempt to reduce debt.
I used this company but was unable to finish the program. I paid them over $1500 and all but $196.00 was used for fees. They refuse to refund any of the money I paid them other than the $196.00. This company is a scam. After they had over $1500 in my account that still wasn’t enough for them to pay off any of my creditors. They kept telling me I had another couple of months till they would have enough, yet the letters from at least two of my creditors said they would settle for under $1000. I lost my job and I am a single money but whenever I asked for any sort of refund I was told to review my contract and that the monies I had paid were fees that had incurred. These people are just vultures and they are even worse than the creditors because they claim to be helping when in all honesty they do nothing.
BE VERYA CAUTIOUS AND CAREFUL WITH THIS COMPANY. VERY UNPROFFESIONAL AND BAD CUSTOMER SERVICE. DONT FULLY DISCLOSE TH DEBT SETTLEMENT PROGRAM…. DO NOT SIGN UP FOR ANY OF THERE SERVICES IF YOU HAVE ALREADY DONE SO CANCEL THE ACCOUNT WITHIN 3 BUSINESS DAYS OF OPENING IT YOU SHOULD BE FINE IF YOU DO THAT HORRIBLE COMPANY TO DO BUSINESS WITH
I’ll make it short and sweet: they are a rip off. Luckily I got out in time. They deducted appox. $1,600.00 in three months out of my bank account never did anything and when I cancelled all I got back was $ 297.00 you figure that out. I decided to go with a chapter 7 bankrupt. My credit is going bad regarless. They are a bunch if thiefs in that company.
This company uses illegal telemarketing practices from 406 and 701 area codes and is now under investigation by the FTC for this. Despite being on the do not call list and asking them several times not to call me again, I still receive calls from them on a daily basis. This has been going on for a year now.
I think I am being scammed the collecters
are still calling and sending treating letters
I have been signed up since April 2010 started in May
paying $593. so far I have alittle over a thousand
I lost my Job in July but kept paying my money is out
now since Dec. I am paying less since I have no money
they havent paid anyone yet.
My question is what are our rights. What if they were not honost in the beginning. I had someone sign me up stating they would contact my loaning company right of way to work with them. Then someone else took over the case. I called them to ask why they had not contacted by creditor and they had to change tactics, because the creditors would not work with them. So they are not going to let it sit until taken over by a third party and that I should not answer the phone and ignore them.
I asked why I was not told this upfront, because I would not have gone with them if that was the case, because I did not want to leave my creditors in the dark.
They told me policy changed after I joined the program. I sent paperwork to join in December and first payment came out in January.
This could mess up my security clearance at work.
made a mistake…
They stated they will not contact my lendor. They will wait until it goes to a third party and that I should not answer the phone and ignore them.
Today they offered to get me on a guard program for my phone t screen my calls…
BEWARE! The owner of this company is Chris Boulahanis. He is also the owner of United Financial Systems. It is the same kind of business. He is currenly under investigation by the Florida Attorney general for taking peoples money and not distributing it to creditors. Google UFS and see for yourself. They are theives and will do the same to you!
I too have been taken by Capital Debt Relief. I think this business is nothing less than fraud. I will be reporting them to the TV and radio media.
{ 3 trackbacks }