Credit Associates – Is this Debt Settlement Company a Scam? – Alabama Consumer Credit Attorney Judson E. Crump 12


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:

I heard one on the radio while driving through Robertsdale, Alabama yesterday.  I believe it was on 96.1 “The Rocket” FM.

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.


About Attorney Judson E Crump

I am an Alabama consumer credit attorney. I specialize in defending people from their creditors. I fight (and usually win) credit card and collection lawsuits. I fight unjust predatory lenders, foreclosures, and I help people recover from credit reporting errors and identity theft. I live in Mobile, Alabama, and I have a wife and 3 children. I love reading and growing things.


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12 thoughts on “Credit Associates – Is this Debt Settlement Company a Scam? – Alabama Consumer Credit Attorney Judson E. Crump

  • John Michael

    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.

    • Jason Donovan

      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

      • Jim S

        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.

  • Jack Mulcahy

    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?

  • Laura Rous

    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.

  • CJ Bakken

    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.

  • Tina Bryant

    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 !!!!!