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

Hi and welcome to the forums. I am not familiar with the FDRS However, I am sure someone will come along that has heard of it. In the meantime, browse around. You will find lots of useful information on this site!

After following up and researching about FDRS, turned up some very interesting results.

All me to to preface, that I believe people are allowed there own beliefs and personal opinions, but FDRS is a source of proclaimed patriotism but in reality a world hating conspiracy web site. There is plenty of front information of consolidating your debts, but if you go to their resources page, and start to read the articles, you will find a wealth of misguided and fearful articles spouting secret societies, new world order, and a chance to save 33% on debt collection.

Personally I don't think this is an agency you should rick your money with. There are many more companies out there that provide support in debt relief without spreading the word of fear and hatred.

I agree with Scott, forget about FDRS. Stick with someone who is a member of the Better Business Bureau. In fact, you can sign up here for assistance.

Wow, they almost sound like that one company that people have posted about here which sounds like a huge scam--is it called the Nouveau Society? Sounds very strange and not something to get involved with...

Thanks everyone for your input about this Fdrs group. My gut was going crazy with red flags, and not finding anything out there about them other than their own propaganda made me really nervous.

I really appreciate you guys!
Hawk

you guys... they provided me with assistance.... they helped me with my debt. thats all folks.

I spoke with them but it made me very skeptical. I asked to see what they do on paper but they wouldnt send me anything. It just seems too good to be true. They told me they could just wipe out my debt in 18 months with payments to them each month that totaled about $7000 for the elimination of about $22,000 of credit card debt. The payments to them were to pay the attorneys to dispute my accounts. I looked up the Better Buisness Bureau and the Arkansas branch has no complaints, but the there are a few complaints federal debt relief program (Hollywood, CA branch) has against it. It was rated by the BBB as an F grade. What I am afraid of is getting sued by the creditors and FDRS taking my money. There is nothing they offer to protect you in case what they say does not happen.

Hi

Though I do not know anything about Federal Debt Relief Services. But what I know is that most of these companies advertise as "we will eliminate your debts completely" or "we will work with your creditors and sort out a feasible monthly payment" but the truth is these stuffs are simply hoaxes to steal your hard earned money. So beware of them.

Take care :)

Nelly

you should have been more carefull racking up your charges, now you must do something, have fun

I actually worked with Fed Debt Rel System. After a few weeks,and a little due-diligence I got the #$@% outta there. Very anti-american views, and constantly spoke of the phrase 'R-word'(Revolution) in training and client contact. Several previous addresses in and out of state, even the fax cover page with a declaration stating non-acknowledgment current Constitutional amendments. After contacting several of the largest attorneys in the US on the company and industry as well, I was told that several companies of this type over the last 5-8 years have popped up. At first, the legal strategy worked, but shortly afterwards, the banks quickly realized what was going on, and realizing the potential consequences of what would happen if a significant number of unsecured credit borrowers caught on, they quickly corrected the problem by having all customers acknowledge in writing/with signatures, that their credit card debt was in fact owed by them to the banks and all proceding credit card applications/contracts have a general cavaet in place ackwoledging these unsecured form of debt as real debt that's owed. With these acknowledgments in place, the credit card companies are now in a position enforce the unsecured debt, regardless of where the money came from. Now keep in mind that this is information obtained from competitors of FDRS, but the general gist was reiterated by more than I debt attorney firm and it is quite reasonable. I would suggest you look over your initial application and/or contract, find the statements of you acknowledgment of debt and promise to pay principals and interests for yourself. Personally, I wouldn't touch em with a 10 foot pole. Good Luck

Spoke with them on the phone. These guys are young, unprofessional, expect you to pay for services before they give you anything in writing, and ask you for very sensitive & unnecessary information over the phone!! Thank GOD I didn't give them what they needed. They were trying to get my DL # & mother's maiden name--unbelievable!!! STAY AWAY

I'm 8 months into the program and confident with their method. I think it makes sense that a large percentage of people think it's a scam because it further supports the case of a far more grand and global scam of deception.

Ultimately I believe the challenge for most people is they want to consult OUTSIDE sources, get reassurance from people they think they can trust. There's never a guarentee for that I think. So the best I've found out I could do is completely overhaul their site and read all their pages.

And their resources page sealed the deal for me because while I don't agree with a certain degree of some of the alternative news linked, I can ALWAYS appreciate people doing deep research that the media obviously doesn't cover. To flatly say that they're "World Hating Conspiracy Theorists" is a unfortunate. Doing your own research is important, and I'd been doing research for over a year before even hearing about FDRS about possible hidden things in our reality, secret societies, etc. So for me, it felt and feels right. Attitude towards things is important, knowledge is important and how we treat each other is important. You can only show people the door, but they have to walk through it. No one asked me for my mothers' maiden name or drivers license number.

Thats great.

I'm looking to for information on FDRS.org. Wondering if there is anyone out there with personal experience with this organization - positive or negative.

Okay, we have been in this program for at least 6 months. They seem legitimate, but I still get calls from creditors etc...Is there anyone out there that has truley been through the program with success.

i need to hear from someone who has been through or going through there system. you can call me at 816 xxxx. please hurry as they are about to take a 2nd payment out of my account. thanks. phone number removed for your safety..Bossy4455

:shock: :shock: :shock: :shock: I would not touch them with someone else's money.That web site and forum screams conspiracy theories!!!!

Here is a link to the BBB report on this company. http://www.labbb.org/BBBWeb/Forms/Business/CompanyReportExtensionPage.aspx?CompanyID=100054546&sm=

For Anony Mouse;
I am curious if you have seen any of your debts eliminated yet? Please respond.

Thanks for giving us that link to the BBB, allvarsity.
Roshana

I've used them. This is what I posted in another forum: DON'T USE THEM!!!! Everything they claim is a lie! I started the program in February 2007. They didn't deliver anything they promised. When I started making inquiries on my accounts and to their dealings with my creditors, they simply stopped returning my calls. I got a Warrant in Debt and have to appear in court and they assured me that this would NEVER happen. I recently discussed their program with a lawyer and he confirmed that their program is all lies and that they are committing fraud. They've taken $2400 of my hard earned money - I'm making attempts to get it back, but I'm not optimistic about it. Some advice I'll give to anyone dealing with debt collectors: Do some research and handle it yourself! Thats what I did 3 days ago. I got out of the program, stopped all payments to FDRS (Federal debt relief System). Sent them correspondences demanding my money back, told them they were in breach of contract and citing where and how. Then I called all the debt collectors that held my accounts and negotiated the balances down for settlements of about half of what I owed. And I got EVERYTHING in writing. I feel MUCH better and safer that I'm handling this myself, because I know that I won't do anything to intentionally hurt myself, but someone else will in a heartbeat!

Ok, very simple equation...hollywood blvd and conspiracy theory. If anyone is familiar with the hollywood blvd area what is it famous for? Yes, the stars in the sidewalk the overpriced souvenirs, the hookers, crackheads, junkies and brand new Kodak theatre which I must say is quite an impressive plaza. Hollywood Blvd is know for the freaks and weirdos like the hookers and junkies and homeless that need to be seriously institutionalized. None of that really bothers me about the area as I have lived in the LA area but what really scares me is the one little utopia located on L. Ron Hubbard Blvd. Yes, scientology. They occupy a small little 4-6 block radius right on hollywood Blvd and have a street named after L. Ron Hubbard. These people scare me. They have their own buses, their own schools, they are a strict utopia of nothing but whack jobs!!!! Look at the BBB report, you will notice this company is located in hollywood on hollywood BL enter their address and put the word scientology in with address. Do not sign up with this company and do not think that just because To Cruise and whats her name and John Travolta are scientologists that its cool or anything because its not. Religious groups like this are into incest and all kinds of weird crap. Not people I would want handling my bills.

Hope I provided a bit of insight and comic relief. :D

I have been in the program for 3 months now. I am becoming afraid as they will not return calls or emails.

Afraid? FIle complaints with the AG in Cali write a letter to the terminator after you figure out what you would do with your accounts. Sifxpert offered free help to someone else who was taken by this company so I would contact him.

i wish someone would help me for me for free. You think if i enroll with federal debt relief for a few months, sifxpert would handle my accounts for free? Just kidding.

I just got off the phone with FDRS, and while I'm still doing research (hence finding this site), I feel like they're onto something. Essentially, they've realized that the vast majority of loans and credit obligations are fraudulently created (see their page on debt_termination for more details.) Their attorneys file challenges to this illegitimate contract and the debt gets written off in 12-18 months. They then help ensure that your credit score isn't negatively impacted. The phone rep told me that she enrolled her housemate in the program. If that's true, I imagine she fully believes in the FDRS "system". Still making my decision, but I just wanted to point out that it's a MUCH different approach than other "debt consolidation" services, and worth investigating. You WILL learn a lot about the secretive banking forces that aren't always aligned with our best interests. Good luck!

"Much different" doesnt even come close to just how different these idiots are. First of all, Banks are heavily heavily regulated and under a constant microscope. I would think by now, they have figured exactly to a science just what is involved and what is compliant, enforceable and indeed legal in order to issue a loan. Dont get me wrong, I know not all banks are fully compliant and I do completely support the validation process which is what NFDRS claims "their attorneys" argue on your behalf. First of all, there is a thing called "unauthorized practice of law" which is a very serious offense for attorneys who represent clients beyond their jurisdiction or where they are not licensed. So, giving the benefit of the doubt, lets say they have counsel in Ca. They can only represent Ca. clients. Do you live in Ca? Probably not. So, everyone else who signs up with FDRS is being sold on the fact that their "attorneys" are challenging the validity of the debt. A little inside information for the naive...this is a process that is not new by any means. Any debtor represented by an attorney will request from the plaintiff attorney proof of the alleged debt. This is called "validation of debt". An attorney will a) confirm that there is a debt but will use this tool in order to find a loop hole or non-compliance to get out of a debt. Therefore, NDRS is offering a program that enables people to commit fraud by way of a 3rd party but advocates not paying your bills which to me is the same as stealing no?

If a debt is not valid, by all means dispute it til its gone but if it is owed it is your responsibility to fulfill your obligation according to the contract you signed or by renegotiating a contract by means of debt settlement or reduction to interest or principal based on your extenuating circumstance.

There are a few (very few) innovative styles some uses to settle debt. FDRS advocates thievery, dishonesty and fraud. If you enroll with them, rest assured you will not benefit. Although "debt validation" is your legal tool as a debtor, there are many creditors who see this type of dispute as a refusal to pay resulting in an immediate lawsuit ending your bankruptcy alternative program.

Knowing this, reading how they are responsive still to sales calls, and not at all responsive to active clients inquiries tells me they are only out to take your money and accomplish nothing for you.

Good luck if you choose that route.

I have been enrolled in fdrs for 3 months. I feel confident with the program. I am looking for someone who has finished the program and can give me some feedback on the results. My counselor has recently left the company ( this past fri.) and was gathering me info. (testimonials)about the program.

I worked for the company a short time too like Maxx1969. Lots of things are secretive because the owner - a short, paranoid egomaniac thinks everybody is out to get him. I got calls from many people who were involved in the program, got sued, had their bank accounts seized & had wages garnished. When they tried to get help from the FDRS people, people never got return calls. So basically they got the duck & dodge. They ended up talking to me because they would just hit any numbers hoping to talk to a real live person. The company got their money and that's all they cared about. The company doesn't give a f*@k about what happens to the clients. After I saw that, I got out of there quick! All I can say is STAY AWAY...Far, far away!

I worked for the company a short time too like Maxx1969. Lots of things are secretive because the owner - a short, paranoid egomaniac thinks everybody is out to get him. I got calls from many people who were involved in the program, got sued, had their bank accounts seized & had wages garnished. When they tried to get help from the FDRS people, people never got return calls. So basically they got the duck & dodge. They ended up talking to me because they would just hit any numbers hoping to talk to a real live person. The company got their money and that's all they cared about. The company doesn't give a f*@k about what happens to the clients. After I saw that, I got out of there quick! All I can say is STAY AWAY...Far, far away!

Anony Mouse: If no one asked you for your mothers maiden name, then your not in that program. Because they DO ask for ALL your personal information, including your ssn, dob, drivers license number, mothers maiden name.

JayZ--My councelor left the company and I received 2 phone calls from the client care dept the next day helping me with my questions. Thay have been responsive to my case. There are many different cases and cicumstances for different people. How long did you work there??

great company i've completed the program six months ago and recieved a cash settlement as well.

I have been with the program for 13 months. Jury's still out. True, they are not good about answering calls or emails. They do not keep you informed about what is going on. Calls from creditors have practically stopped. Even when we did get calls,the collectors were not out of line. We did have to go to court and their attorneys were helpful but not there. We did as a result see some correspondence FDRS has had with our creditors. Good stuff. I still believe in what they stand for and I can see why they are secretive and careful. They have to be. Will keep posting as we get closer to our "magical" eighteenth month.

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.?

Piz-FDRS in itself was not involved. We were connected to their legal department who handled it with us. This is a 3rd party. Appropriate responses were sent to us to send to the creditors and courts. This cost us a bit because everytime we had to file something with the courts we had to pay court fees of over $300. I do believe this was unnecessary had we responded as we were instructed. I do have to say that you need to have good intelligence to get through the paperwork. If you get there READ every word - twice! I believe they would have assigned a lawyer if there was a real need. Court did not go totally well for us - we hesitated because of miscommunication with the legal department - didn't respond to the creditors in timely manner and so on. Looking back - their advice was awesome - we fu*** it up by questioning too much and by not trusting that they knew what they were doing. It was difficult for us because we were unable to talk to anyone from the legal department on the phone. It was stressful because FDRS was not answering our phone calls or e-mails either. They were good during our first six or seven months but not since. When I think about it - I wonder why we didn't quit. I think this organization runs the risk of losing many of its customers because of their lack communication. Ultimately, we have 2 judgements which we are assured will go away. We'll see. We're in it til the end. My advice - do as you're told without asking too many questions. Sorry -probably more than you want to know.

Mike - Do you have a picture of someone crossing their fingers - hoping for the best? Otherwise - the gradboy is fine. I will graduate from FDRS university soon! :wink:

Who Knows----Thanks!!! I appreciate the info.I wonder why it was it so difficult to talk to the legal dept.?? I have a feeling I'm going to court. The disputes letters were sent a little over 30 days ago and I'm waiting for some correspondence from the creditors. The creditors are either going to validate the debt or have a judgement against me. Did any of the creditors actually validate your debts--with a signed loan agreement between yourself and them?