Federal Debt Relief Program - Has it been helpful to consumers?

Thanks, who knows. Please let me know how things turn out. I am very worried about all of this...

They do not keep you informed about what is going on>>> yes Who Knows I agree with you. They do not even bother to inform you whether they are contacting your creditors or not. You have to constantly phone them up aor send letters to know "hello are you guys reallyyyyyyyyy calling up my creditors?"

I have to disagree about them keeping you informed. I know exactly what is going on with my case. I have had no trouble getting in touch with the client care dept. They are very helpful.

Piz, I wonder if you have a counselor. I learned recently from a very helpful counselor that once your counselor leaves the organization or gets fired or promoted, you don't get reassigned a counselor. Our conselor was promoted the month we signed up. If you have a counselor they keep you informed. If you don't - they don't. I'm still not sure about this but I'll keep going because I'm almost done and because the correspondence I've seen from them to the creditors is really good. They have good reasoning for what they are doing. We'll see what happens. I would appreciate comments from snyone who has seen the program to completion.

Who Knows--I do not have a counselor. The client care dept has been very helpful. Maybe I am lucky, but I have had no trouble getting through to them and getting answers. My fear is being sued but I am sure they will help me out. Are you aware of any tax consequences once the program reaches completion??

Joel E. is a manager at Federal debt relief System! If you don't believe me, call over there and ask for him. If what he said is true, where is the proof? How about some details or a court case # (since its public record). FDRS monitors the Net for negative comments about them and has their people post positive comments to counter the bad ones.

BTW, I worked there for about a month (a couple of months ago) and never heard of a single person who completed the program. We saw no testimonials and when we asked about them we never got any answers. If this program is so great, where are the satisfied customers? Anybody?

Jay-Z--called FDRS and there is no Joel E. there.

I sure would like to hear from anyone who has completed the program. Piz - you were concerned about having to go to court. I will tell you that we had to go on two of our accounts. It was hard but we did it. I will tell you that I do have hope for this thing. Of our many accounts only one calls and they are very polite and professional. I have learned so much over the past few months. Did you know that after these original creditors charge off your account - they collect on an insurance policy and then sell your account to someone else who lies (fraud) about being hired by the original credior. If FDRS is truly just selling "education." They're doing the job. I just wish they would care enough about the people to answer calls and update status.

Who Knows---Thank you for the insight. I have found that being proactive with FDRS has gotten me answers. I believe in what they stand for. I have made a mistake getting myself and my family into so much debt and feel I finally have made the right decision. FDRS never stated to me that I would not be sued. They have always told me it is possible and it's not that bad a thing if that happens. Thank you again for letting me know they were there to help you when you went to court. I have also learned soooo much in the past fews months about the entire banking system in America. When you call FDRS, do you call the client care dept.? Every time I call someone speaks to me. Also, I have only been in the program for 5 months.

Those who were in and are now out, how did you stop the automatic payments??

PB&J - I am not out but imagine you would need to contact your bank. Why are you giving it up? How long have you been in?

i am confused about whether they are ligit. i have a lot of debt and if i have to pay taxes on the relieved debt, that would be a huge amount. then i will be stuck paying the IRS. They can put people in jail unlike the banks. It's possible with IRS interest I will be paying just as much in the end. 9k to FDRS, to relieve 30K in debt, then 30% tax on 30k is 10k or so, plus interest cause i certainly wouldn't be able to pay off that amount in a timely manner. plus if i get sued, then more court cost and fees. i think it's too risky. besides, i still haven't heard any details from anyone who has completed the program. if anyone has and wants to share their story with me please email at email address removed as per forum rules - Mike. i think it's odd that they were so persistant on getting the agreement signed that same day. and that the first payment is scheduled to come out 3 days later. if you want to cancel you have to cancel in 3 days and before your first payment. but they can't stop a payment unless you contact in writing 3 days before it's scheduled to go out. so bottom line, they will get their first payment unless you go to your bank and stop it somehow, which is expressly writen in the agreement that you are not authorized to do that. sorry if this is hard to follow. contact me on email if you want to discuss further.


and to the guy or gal who said they are 6 months past the program and everything is fine, what is your credit score like now and are you going to have to pay taxes on the relieved debt?

Banana runt: I know that $ is always the bottom line but right now I'm in it almost fourteen months and lately its become more about not being a victim to these credit card companies and about leveling the playing field - a little. FDRS,(as questionable as they appear and I'll be the first to complain about their ways with their customers), will provide you with an education you will never forget. If you choose to do this - you will learn more than you want to know and maybe - just maybe you will be less in financial debt. The latter is to be seen by myself. If you can hold out - wait a few months and I will post how it went for me. 4 months to go. By the way -the guy I worked with to get me started didn't pressure. In fact, I was impressed that he told me at one point that I was not ready for them. When we did decide - I chose the date - a month later.

Banana Runt--I have been in the program for 6 months and I agree with Who Knows. As for tax consequences, yes there is a possibility that you will have some. Your tax advisor will have to help you with that. If you have a positive net worth, you may have to pay some tax on the eliminated money. Most people who are deep in debt do not have a positive net worth. This means they are insolvent. If you can prove you are insolvent you will not have to pay tax on the eliminated debt. debt settlement programs work in the same manner. If you owe 30k and the it's settled for 20k, the credit card company can send a 1099 to the IRS for the 10k that was eliminated. Talk to an accountant. I'm staying with the program because I believe in what they stand for. I have way more debt than you and do not have any positive net worth.

i checked them out at one point and it sounds like while their methods may be different you will still have to go thru the same thing as if you went thru a debt settlement service. you have to make a couple of larger payments and then pay a certain amount based on your amount of debt for about 18 months. however they did tell me that it's possible to get money back at the end because they actually sue the credit companies for their fraudulent loans. they are not haters breeding fear. what they are doing is based on the fact of how credit companies operate which is almost identical to the federal reserve...the create money out of nothing and then charge you interest on it.

Who Knows--when you had to go to court,was FDRS was there to help? Did you have a settlement or court fees, etc.?