Found this on the BBB:
The BBB is experiencing a high volume of calls and inquiries for this company. Inquirer's are asking the BBB to "define the method of Novation, used as a process of
debt relief services." "Novation", the method used by this company is unknown to the Better Business Bureau. We have sought information from a number of different independent sources and have been unable, to fully understand the service as offered, at this time. In our efforts to assist both the company and consumers, we are including in this report information which was voluntarily provided to us by the company on January the 26th 2009. The information describes the process in it's "New Client Agreement", included below.
Section titled: "Rights and Responsibilities of Consultant" Consultant agrees to utilize his best efforts to undertake a process known as "Novation" on certain contractual obligations of the Client. This process is considered controversial and uncertain in many regards, and there can be absolutely no guarantees of a successful outcome. It is understood the purpose of this novation is to transfer responsibility for debts to CMS and to reduce the clients debt as much as possible without bankruptcy proceedings. It is understood that this process does not eliminate legal liability on the debt on the part of the debtor, but adds CMS as a party in interest to these claims as a matter of convenience so that CMS may undertake services on the client's behalf., and to establish potential defenses and challenges to credit card collection action.
It is further acknowledged by the client that no representations or warranties are made concerning the effect this process will have on the clients credit score, and that the credit score is likely to deteriorate from this process.
OK
1. "Novation", the method used by this company is unknown to the Better Business Bureau. We have sought information from a number of different independent sources and have been unable, to fully understand the service as offered, at this time.
That's because it's crap and pure theory mumbo jumbo.
2. This process is considered controversial and uncertain in many regards, and there can be absolutely no guarantees of a successful outcome.
Then if it fails do I get my money back?....NO Why would I use you if there are no guarantees of a successful outcome? That would be stupid on my part.
3. It is understood that this process does not eliminate legal liability on the debt on the part of the debtor.
I thought transferring the debt to you means it's yours now, not mine? They are telling you up front that their process is BOGUS.
4. It is further acknowledged by the client that no representations or warranties are made concerning the effect this process will have on the clients credit score, and that the credit score is likely to deteriorate from this process.
Ummmmm....What? What are you talking about? Why would my score go down? Why would I be sued? I transferred responsibility of the debt to you remember? (But they told you legally this can't happen) They will come after you, not me......right? WRONG They are double talking here. Telling you one thing and writing in fine print another.
You are PAYING them to tell you STRAIGHT OUT that they CAN'T DO what they say they DO along with NO guarantee. In one little paragraph they say that. Anyone seeing that.
Linear Mode
