Preferred financial Services - How much can you depend on them?

New York State Attorney General Going After Debt Settlement
by Troy Wilson on May 16, 2009


Image by Getty Images via DaylifeNew York State Attorney General Andrew Cuomo announced a nationwide investigation into the debt settlement industry. This has always been an aggressive office for consumer protection. The debt industry is a necessary survival tool for many consumers that have gotten in way over their heads with easy credit. Unfortunately, many scam artist are willing to scam these already desperate consumers.

???Today, millions of hardworking Americans are finding themselves imprisoned by debt. In response, a rogue industry has stepped in, offering consumers false hope, charging tremendous fees, and leaving them in a worse financial situation,??? said Attorney General Cuomo. ???Our mission is clear: to hold unscrupulous businesses accountable; to rein in a renegade industry; and to ensure that people are not victimized when faced with financial hardship.???

As part of his broad investigation of the debt settlement industry, Cuomo today issued subpoenas to fourteen debt settlement companies and one law firm: American Debt Foundation, Inc.; American Financial Service; Consumer Debt Solutions; Credit Answers, LLC; Debt Remedy Solutions, LLC; Debt Settlement America; Debt Settlement USA; Debtmerica Relief; DMB Financial, LLC; Freedom Debt Relief; New Era Debt Solutions; New Horizons Debt Relief Inc.; Preferred Financial Services, Inc.; U.S. Financial Management Inc. (d.b.a. My Debt Negotiation); and the Allegro Law Firm.

Many in the industry have already tried to self-regulate and give consumers information to sort the bad from the good. Unfortunately, they still creep in and give the good guys a bad name.

I almsot signed with this company, Once you read the contract and see what the total they are taking I felt it was a scam. It seemed by the time they took the first 2 full payments for them selves and then half of you payment every month for forever, You would be much better off doing the settlements your self, After I called and canceled right away the manager named Damien was very rude,even telling me to have a stupid day So glad we didn't choose them. They are crooks

I had a great experience with Preferred Finanacial out of Andover, Ma. I was enrolled in a 36 month program and got some really great offers so I ended up finishing within 12 months. Most of my creditors settled for less than 35% sense on the dollar. Yes I had to come up with extra funds to get the settlement done but it was worth it. Once I finished they enrolled me free of charge in a credit enhancement program. I am currently working with Trinity Credit Services and they are working with me to make sure that everything updates properly and my credit score goes back up.

Has anybody ever had problems with mantis financial services?

I just Googled them and there are no complaints at all about their services. There is 1 complaint on RipOffReport, but it appears to be from a contracting business and Mantis responded to it accordingly.

I have spoken to two different companies, and I do not feel safe with either. One guy from PFS CONTINUES to call me, despite my telling him I have changed my mind and do not want to go through the settlement process. He called today, I heard his name and company, and hung up. The bastard called me RIGHT BACK, and I told him not to call my house again. Where do they get off "harassing" people? I haven't signed anything, given him any personal information (besides my address), and he's going here. I'm glad for forums like this because you just don't know. God bless us all...I lost my job, like many other folks, and am trying to find the best and most responsible way to deal with my debts, as I will be forced to take a huge pay cut. In any case, thanks for allowing me to vent. Look for notes from me if the guy from PFS calls again!

What do you mean settle your own debts. If one has let's say 25,000 owed to mastercard--if you call them and say I want to settle--why would they say--ok just pay us 12,000. Wouldn't that also ruin your credit? And why would they even accept less than they are owed-- thanks.

well i am starting the process to se what they can do for me they seem right on top of things but will give a very detailed thing when the program has started. After all the banks got billions. i wil give out some advice to everyone including for myself that if you are going to get a credit card i would never go over the limit on it for 5k and only 1 card. at least this is what im going to do. More updates as they come.

I signed up with them at the end of october but i am in the process of cancelling, jennifer @ ext 232 said that i wouldn't have to make my monthly payments on my cards but what she failed to mention is that they wouldnt pay them either, which would further mess up my credit, they would have gotten too much money up front and i didnt feel comfortable with this, im just going to do it myself and get results !!

I tried getting a personnal loan, after identy theift, everywhere I went I was told no.
But for some reason this company said yes, I havent done anything yet! I called the BBB to check on there record, it's rate F, for asking up front money. the bbb worned me not to do buisnes with them.
But my question is this where can you get a loan after identy theift has ruin your credit?

thanks

I just am signing up with them, and it is scary -but seems like a better option than bankruptcy and I am hoping they are a legitimate business that DOES help resolve your unsecured debt!

I did check with the better business bureau in Oregon and because they are a debt settlement agency, they do not have to sign up with my state until January, 2010.

Thanks and good luck to all of you- if anyone knows anything RECENT - good or bad about Preferred Financial Services and their payments/information, I would welcome a response!

sj

I am going to go see a lawyer in a few days I am into the program only a few days and getting real scared I know I have thirty days to get out.... They have to refund the first payment if I get out within 30 days. I certainly don't want to get scamed. Are any of these post's dated for 2009

You can contact USOBA to verify if a company is certified and accredited.

United States Organization of Bankruptcy Alternatives (USOBA)
Jenna Keehnen, Executive Director
Phone: 1-281-820-0666
Fax: 1-713-456-2837
www.usoba.org


The United States Organization for Bankruptcy Alternatives represents the debt negotiation industry by creating state specific agendas and to advocate for fair regulation and protection of consumers.

USOBA brings individual representation together as a united front to protect the debt negotiation industry and to secure its future. They are committed to working with and informing legislatures, regulators, consumers, creditors, and governmental bodies to better understand the industry.

USOBA launched an Accreditation Program, which was drafted and implemented with member approved standards. Offered through membership with the largest trade association in the industry, USOBA???s Accreditation Program was the first audit supported, free consumer referral system. USOBA is the most respected trade association for the debt negotiation industry and does not commingle its message with that of other financial services.

Record levels of American consumers file for bankruptcy each year. With the credit counseling industry under fire from the IRS, FTC, U.S. Senate and House, consumer advocates and state legislatures, USOBA members are consumers??? last hope before filing bankruptcy.

:confused:We are in a program with them now, but are starting to wonder if we've done the right thing. We've had two court actions since signing up (we're 4 months in). We have only one settlement offer so far, and it is for two lump sum payments which are far beyond our means. It almost seems that they're not doing any better than we could have on our own, negotiating directly with the creditors.

settlements through a company usually work out around month 6 im suprised to see that you are getting court actions already thats suprising. are they from the actual court or are they just threatning letters?

We have been with them a few years now. Everything was going great until we received a noticed we were being sued by ATT. We only owed them about$2000.00 when charged off. We tried to call the attorney and they would not speak to me. Because PF1 handles our account. We sent PF1 a copy of the letter and they said they would take care of it. They made arrangements with the attorneys Javitch Block and Rathbone. I thought everything was great Called to see when it would be paid of the agent said you have 2 more payments left. Great! Not so much. Called back 2 months later to see what we would be tackling next and another agent said you still have 8 payments left. That I had to pay $4500.00 because it had went to court. Ticked off I hung up the phone, and waited for statement. Received the statement and no payments had been taken out of my acct. Called to find out waht the deal was. Maybe new agent had been wrong after all. Spoke to an acct manager who after being placed on hold came back and said yeah you still owe them. We made more arrangements with them. It should show on next statement. Curious now, I asked for the attorneys # to see if this was legit. Guess what, they wouldn't even tell me if they had been receiving my payments. Mr Ross, was somewhat snippy...saying why are you calling? I told him I just wanted to verify they had been receiving payments. Funny, I'm paying you and you won't even tell me if you're getting the payments. But you can sue me? Hmmm. Smells fishy. Anyone else had similar thing happen.

I am considering this service, but I am not in a poor financial situation and make my payments every Month without problem. They tell me that the worst thing that will happen is that on my report it will say "closed account by consumer"...which doesn't seem so bad to me. If that's the case, why WOULD I pay all of my cards off when I can save $8,000 by giving them $600? Why wouldn't everyone do this ? (Which is why I am skeptical)

Because they are lying to you, as the industry often does. Do some research.

(Not all of this post is directed just at the last poster, but all those suckered by the Debt Settlement industry.)

That's because they are being dishonest to you like most debt settlement companies; basically they are lying. You can make the same, often better, settlements yourself and put their extortion money to *your* bills and improving *your* life - not theirs. Don't feed their rapacious greed.

If you go with it I can almost guarantee you will regret it, and your credit report will be destroyed. You should NEVER go for settlement unless you are down to ONLY 2 options: Bankruptcy or Settlement. And also ONLY after you have tried Consumer Credit Counseling and/or Debt Management.

Take responsibility for yourself and do some research! For instance, this report by the National Consumer Law Center has been online since 2005!
"http://www.consumerlaw.org/initiatives/credit_counseling/content/DebtSettleFINALREPORT.pdf"
- An Investigation of Debt Settlement Companies: an Unsettling Business for Consumers.

But the DS Industry is about to change because the Federal Trade Commission has been listening to the complaints of ripped-off customers from this crooked industry:
"http://www.ohioattorneygeneral.gov/DebtReliefLetter"
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"http://www.ohioattorneygeneral.gov/debtreliefletter"
Enjoy!

I know the owner personally. I can tell you that he is not a very nice man. you can settle your own debt. belive me not that hard. save your money in a savings account at your locan bank. when you have saved enough call your creditors one ata time and settle. thats all! why pay someone to do it?

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PFS runs a very good organization. The people I dealt with on the phone were fantastic and very helpful. I did some research about the lawsuits and found out that the NY AG was investigating 16 debt settlement companies but no legal action was ever taken against PFS since they found no unscrupulous activity.

Are you sheep for real???? Look up "settled" next to the Worst factor for your credit rating. These vampires work on your fear factor...The more they scare you - The more they get out of you.
You have $20,000 in credit card debt and you want to settle??Your credit is ruined for
as long as you keep paying and beyond...What is the point, your massacism???
You walk away from cc debt the calls stop after They know they are not gettin a red cent out of you...BUT if They KNOW you want to pay?? They go after you for all kinds of dreamed up "Fees" plus the BLOATED principle, and you pay it???
After you stiff these cc vampires and you get a couple of secured credit cards -Visa and a MasterCard and you pay them on time, - know what?, in 2-3 years the credit bureaus start to upgrade your credit and the negative entries start falling off exponentially.
As opposed to paying these bloodsuckers and struggling for YEARS -4 or 5 - and then they screw your credit for 7 years after that!!!!!
Wake UP People The whole system lives off of frightened sheep meat!!!!!!!

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Take this please as a helpful warning. This is nothing more than a sham company having no regard whatsover to people who are in bad circumstances. These type of scam artists will do nothing positive for you. Go to your'e local non profit agency to get help. I know this from past experience.

i was with PFS for 48 months..they promised me that all my debts will be handled with them..i would of finished my program with them in feburary, but i had to outstanding accounts which is a total of more than 5 grand..an rep for them told me they can't do anything about them so she suggest i cancel my contract since they won't be able to resolve those accounts before feburary and now i been summons to appear in court for those 2 accounts..pfs are scam artists..they made sure they take out their fees and percentage before they even pay for the creditors..what a load of crap!!beware don't join..when i call i always get the damn voicemail and when i email there is no response at all..but they sure respond when they like their money by taking out sometime twice a month instead of once..again don't join..load of crap

They are a rip-off. I am having to file bankruptcy because of them. My creditors and/or myself can not get anyone from PFS to call back. I was blind-sided by court papers since I don't get any updates on my accounts. Of course, PFS won't call me back! Try to settle your own debt!!! NEVER NEVER NEVER use PFS!

DONT trust Preferred Financial Services

Dont trust Preferred Financial Services..I gave them my bank account # and signed an agreement with them..They proceded to inform my creditors of my bank account # and one of my creditors issued a eletronic counterfeit check (by the name of Calvalry Portifoilo Service,LLC ) ,made it to appear like my banks check,for $200 and cashed this check at my bank...I have informed my bank and they are taking action..Harrison Ash tele 415.785.3250

[COLOR=black][FONT=Verdana][COLOR=black]Harrison[/COLOR][COLOR=black] what you have posted makes absolutely no sense what so ever! Why would a debt settlement company give out your bank information to a creditor who they are negotiating with to get you out of debt; they are not trying to make a measly $200 payment. I have done a little research and this company is a member of U.S.O.B.A (United States Organization of Bankruptcy Alternatives) and if they were giving out your bank information they would obviously lose their membership and accreditation with a United States Organization! I know this is a blog site and is obviously unreliable and this post that Harrison Ash wrote really solidifies and highlights how unreliable these sites are![/COLOR]
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Hello dfawaz,

Did they tell you at PFS how this would affect your credit? I just looked up the information and was thinking about making the call and see what they have to say.

thanks

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You DO NOT NEED a "debt consolidation services company". The vast majority of them are TOTAL Ripoff scams.
Get a secured Visa and a Secured MasterCharge - New Millennium Bank is Excellent. Put $400 in each card and use them wisely making $30.00 over your minimum monthly payment and WALK AWAY FROM THE REST OF YOUR RIPOFF CARDS.

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I have contacted this place trying to get out of debt.. after thinking it over for about 3 weeks my gut told me not to do it. Bethany Evan from Prefeered Financial Service contacted me last night around 8pm( wihich in my eyes is to late to contact me unless its an emergency..But anyway..) I told her I was not interested and she started getting rude with me.. telling me that I am not serious about solving my problem and trying to get me to change my mind about it and when I said that I didnt want to do it anymore than told me it was stupid for contacting this place and that she hopes that someday I will look back and wish that I had done something about it.. Then today as I am checking my emial I see her name in there. She has sent me a nasty email saying that I was rude to her and that NEVER to contact her or the company again. I honestly think this place is scamming people just to take their money and run. I am SO glad that I never gave them any money! Please spread the word about this place...

After I said I called chase and said that I coudln't paid my bills, that is when I was transfered to a chase debt department and had to answer a couple of questions to determind if I was really in debt. So the Chase rep determined that my monthly income was almost the same as my monthly payments... THAT is when the Chase rep decided that they would give me a phone number to get help. This makes me angry that Chase has to decided if I needed help before they actually provide me information or phone number for help.

But Chase did provide me with a phone number to reputable company called NOVADEBT.com and I spoke to a very genuine person. I am actually still in good standing with all my creditors, but I wanted to find help before I default myself. I beleive novadebt.com would be a good area to start for help. Hope this will help someone out there.

Things said regarding our service... There's a lot that's been said about our firm. From a negative standpoint it seems like there are consumers that take issue with poor customer service - a lack of responsiveness, etc. Additionally, there are consumers that have voiced concerns about the service itself generally people are asking do we actually settle accounts?
Its important that consumers have an open forum to voice any concerns that they have regarding our performance. It should also be clear that we welcome all comments posted on any forum. Each time a consumer voices their opinion regarding our service it gives us an opportunity to improve. We have taken action based on the things that have been written - we have always had a policy regarding follow up with our clients, specifically each of our clients is to receive a return phone call by the close of business of that business day. Additionally, we build in follow up communications with our clients into our every day process. Even if our clients aren't calling us, we are calling them.
Do we settle accounts? This question is fundamental clearly the entire purpose of our business is to find ways to eliminate debt for our clients. All consumers should know that debt settlement is an effective solution to resolving debt. Literally millions of Americans have taken advantage of the services afforded by different firms offering this service. Credit card companies openly acknowledge that they accept reduced payoffs, these are facts. Our industry is continuing to grow as consumers are making informed decisions regarding their finances. Using our service is a choice, each consumer is free to research independently and come to their own conclusion regarding the best method to resolve their finances.
In closing each and every consumer should know that our success is dependent on our ability to do a good job. This concept isn't advertised heavily or talked about, but it is absolutely true. The effort and focus of each and every member of staff is tuned to finding ways to make the experience of each of our clients as successful as possible. In the end the mission of our business is to achieve the best possible results for each and every one of our clients.
Respectfully submitted,
Gabriel Tavarez
General Manager

I would rather say that Preferred financial services are not a scam, it's just that people who usually work in this company are very rude and unethical. As mentioned above about the feedback of few customers, I would say that a few people that I know gave positive feedback on how the people from preferred financial services deal with the consumer. It's not because these consumers owe something from the credit card company that doesn't mean that they have the right to send nasty emails, threathen the consumer or just by being rude and unprofessional. They might be offering us a great deal of option on how we could pay our debts but don't they also know the word "Customer service"?

I would rather say that Preferred financial services are not a scam, it's just that people who usually work in this company are very rude and unethical. As mentioned above about the feedback of few customers, I would say that a few people that I know gave positive feedback on how the people from preferred financial services deal with the consumer. It's not because these consumers owe something from the credit card company that doesn't mean that prerred financial servies has the right to send nasty emails, threathen the consumer or just by being rude and unprofessional. They might be offering us a great deal of option on how we could pay our debts but don't they also know the word "Customer service"?

I have had nothing but good results with PFS, courteous and helpful, they were very knowledgable about how this process works. If you understand how it works people won't be so scared to join. I have already saved over 10k! almost finished and completed happy with the path I took.

DO TRUST PREFERRED FINANCIAL SERVICES they are the only legit company out there that will actaully do the work that will save you thousands!

Preferred Financial has been nothing but great to me. They really helped me give structure to what I was doing. I had to sit and do the math it just doesn't make sense to keep paying min payments and getting NOWHERE it was driving me crazy spending all that money monthly. I would recommed their service to anyone they always return my phone calls and get back to me if i have a question no matter how slight im very happy with them

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there is a regulatory agency called USOBA go to them for a list of good companies..they do 3rd party audits of debt settlement co. i think its usoba.org?

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Preferred financial got me out of debt and cleaned up my credit in thep process, its really a fool proof stuctured plan. As long as you can make your monthly payment you will be fine. I just followed the simple instruction give to me by my knowledgable Advisor ( they are all certified with the divison of Financial Lit. so you know that your talking to someone who knows how to effectively help you) and it looks like I'll be out of debt faster than we orginally thought. This program works and PFS is great to me, you just have to be committed.

I am on a fixed income and Preffered Financial was able to give me a realistic plan to get me out of debt. I'm pretty much done with all the accounts and they are in the process of updating my creidit. I don't knwo what I wouldn've done without them. The also were able to stop creditor calls that I was getting and that was a big relief. There is help out there and Prefferred Financial is a fantastic company.

Best regards,

Rach..

I have been using a debt settlement company. Preferred Financial, They have been unbeilvable source of help with my finances. I was sooooooooo overwhelmed! Plus I was a little parnoid I???ve found some negative things about debt Settlement. I liked that they updated my credit so that now I can reestablish without a problem and I have no debt.,,, i paid back much less than what I owed.