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National debt relief program - Is it a scam in USA?

Submitted by mistyblue901 on Mon, 03/02/2009 - 12:19
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I am currently in Chapter 13 and I am having a difficult time paying on the monthly plan, a payment plan that I could not afford in the beginning but trusted my Attorney who informed me that I can modify it. Unfortunately the Judge rejected it and now I am expected to pay that amount. How did it end up being so high, mean test, I was informed. Well, I am at the risk of it being dismiss because I am only sending in the money I can afford. I received a letter in the mail from National Debt Relief (Settlement Company) claiming they can reduced my payment down to what I can afford. They claim they are a governmental agency and advise me to stop sending money to the Trustee and enroll into their program. Have anyone heard of National Debt Relief Plan?


To the people with rational input to this mailer, thanks for the heads up. Why did this have to turn into a gov't hatefest when the question was if this company is legit or not? Does anyone have something useful to say other than the played out catch phrases like "wheres our bailout?" Have any of you heard of bankruptcy? Your credit gets ruined for 8 years but you have your bailout. For everyone trying to put all the blame on govt. please educate yourself. The last 2 recessions were produced from bubble economies. In the 90's the .com bust came from everyone over valuing tech companies. Now this recession came from over valuing real estate. Both times our whole economy hinged on perceived value that was not really there. The bust in the 90's was on a democrats watch. This one started on a republicans. The gov't can't fix this quickly, just like your not gonna get rich off AOL stock or have your house appreciate $100,000 in 1 year. When we have less gov't control corporations exploit people with mortgage scams, when there is too much it puts a choke on our economy. Where is the middle ground? The polarizing of American politics is scary because everyone is taking one side or the other. Most of the time for no other reason than these contrived catch phrases.


Submitted by on Mon, 02/08/2010 - 10:13

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Its 2010 and they are still sending out letters. I made my call but did not get alot of information. Sounds like it still a scam. I too got the impression that this was a government generated plan for help. Guess I was wrong.


Submitted by on Tue, 02/09/2010 - 10:57

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Since all the commentors are anonymous, who can tell if the ones writing in favour of the debt relief agnencies are individuals affliated with these companies themselves trying to lure readers to them? A person advocating a specific debt relief program should come in the open & let us all go to that company to seek a reliable, fair, and free-of-scam service.
But what I also don't understand is that creditors, especially credit card companies make it harder for people undergoing financial hardships to manage their debt. Once you are late in payment even by a day or may be an hour in my case you are listed as defaulting & your interrest rate shoots up thum making one less capable of payingo off your debt.
Regards


Submitted by on Tue, 02/09/2010 - 11:29

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I have talked with an agency called Credit Answers, based in Texas. Do you know anything about them? Are there any debt relief companies you can recommend? We have about $50,000 in credit card debt that is becoming impossible to maintain payments. What about bankruptcy (I think chpt 7 where you make lower payments or something like that???).
Thank you!!!


Submitted by on Tue, 02/09/2010 - 12:16

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I have found today a News agency who has recently done an investigation against this company,




They sell this offer under the National Debt Relief Group and are also a member of the
TASC - THE ASSOCIATION OF SETTLEMENT COMPANIES.

OKLAHOMA CITY -- Consumer credit counselors are trying to warn metro residents about a debt letter arriving in the mail.
The letter says it's from the National Debt Relief Program. Some say it looks like it's from the government, but it's really from a company trying to make money off people in debt.
Jennifer Wallis works at Consumer Credit Counseling Service of Central Oklahoma, and she's always on the lookout for consumer scams.
"That's the problem I have, is tricking people into a program that's going to damage their credit," Wallis said.

That's exactly what Jennifer said a letter her client received is trying to do. It claims that "under the National Debt Relief Program" people can reduce "monthly debt payments by up to 50 percent." It goes on to say "Oklahoma records" show the person receiving the letter qualifies.
"I think the letter is misleading because it looks like something that would be from a government agency," Wallis said.
But the letter is not from the government, in the fine print at the bottom, the letter reads the message is from "GHS Solutions," a debt settlement company. The company has 44 complaints filed against it with the Better Business Bureau.
"They've gotten more than their fair share of complaints for not doing exactly what they're supposed to be doing," said Bob Manista with the Oklahoma City Better Business Bureau.
Jennifer Wallis said debt settlement companies can destroy your credit, land you in the middle of a lawsuit or cause tax problems. She's frustrated with how GHS Solutions solicits clients, and warns consumers to do your homework before signing up.
"People are struggling in debt. They're struggling to keep their jobs. They're struggling to pay their bills and kicking someone when they're down is absolutely despicable to me," Wallis said.

The Better Business Bureau also said if there are government programs available, you don't need to pay a company to find out about them.

This company is making many people suffer more then actually helping them. Someone needs to stop this so called government program from doing all of this.


Submitted by on Wed, 02/10/2010 - 05:56

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I am currently using Harbour Credit Counseling Services. They charge $35.00 a month and have negotiated with my creditors to pay back with greatly reduced interest rates. I do have one Citibank account that I continue to pay a $58.00 once agreed upon payment amount. However, now I am being contacted by an outside collection firm and offered to pay half the debt but they only give me 10 days of less to come up with half of the balance (about 2,200) I haven't been able to take advantage of this for lack of funds...obviously. Harbour Credit has continued to forward them a monthly payment of $58.00. I'm confused because I haven't voided our agreement amount but it seems that Citit has decided to just ignore our previous agreed upon payment structure. Any insights?


Submitted by on Mon, 02/22/2010 - 23:15

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is it possible to find a reputable company to help me reduce my debt with credit card company's with out having to file bankruptcy please respond to my e-mail


Submitted by on Tue, 02/23/2010 - 07:26

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NDRG has finally gone too far with there attack on people's livelihood, They are totally scam artist's and I for one am very upset at the fact that they are advertising that they helped people settle $1.6 Million Dollars for a mere $528'000 Dollars, That equals to 33% of the amount owed. Does that mean that this month NDRG made $428'000 Dollars? because they charge each and every single customer 60 cents of every dollar owed.

Are they planning on giving back the difference's or keeping it for themselves?

Most likely they did not close anything anyway as they have only been in business since October 2009 and it takes 36 months to finish up the program for there esteemed clients. Please advise if these scam artists keep this money for themselves or are actually planning on helping people because for now they are spending every penny on FAKE advertising and media hype. This is very very scary and someone needs to do something about it before it is too late.

PRWEB.COM needs to do a check of sorts with the news releases they launch to google.com and other places. As innocent people's livelihoods are at stake.

If they did settle even 20 customers accounts please come forward and please give at least a review and provide a better understanding of how exactly this company is in business???

http://www.prweb.com/releases/2010/02/prweb3628084.htm

Here is a link to there unbelievable 33% settled debt. Maybe they should start charging there customers 40% of the amount owed which equals to .40 cents per dollar amount instead of taking .60 cents per dollar.


Submitted by on Tue, 02/23/2010 - 15:38

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Sorry that some people got scammed. I was not. My $80,000 in debt was settled in 3 years for around 30k. I had to stop the calls by sending a letter to the cc companys to tell them to only send me communication in the mail and not over the phone. It took a month and the calls stopped. My first card settled in 10 months for 35% of the balance and the rest only took 2 more years. Yes i paid a 10% fee and $85 per month, but i started with a low credit score and now i am back to a 650 and it keeps getting better....not sure about the other companies, but it worked for me.


Submitted by on Wed, 02/24/2010 - 07:25

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Big JIM? This is a forum for NDRG (National Debt Relief Group) They have only been in business for less the one half year. Even on there BBB.ORG report it says that they have been in business for less then a year. I do not know how you were in the program for 3 years.


Submitted by on Thu, 02/25/2010 - 17:24

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I go through a company called Consumer Credit Counseling Services of Rochester. I've already paid off almost $5000 in debt out of my $15000. They send you monthly statements as to how much is paid to each creditor, they create a budget for you, they tell you how much left you have and how much you've paid. I started this program while I was living in South Korea, so I'm sure anyone in the world can use them (I live in Rochester, so that's how I knew about them). There is, of course, a monthly fee paid to them... but over the course of my debt management program, I'm only paying them about $500 total... and that's well worth it to me compared to the thousands of dollars in late fees I would have faced without their help.


Submitted by on Mon, 03/08/2010 - 10:49

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why do you have have false information here and no one cares for the facts. National Debt Relief is not based in Brooklyn, and is a completely different company, there is NDR and NDRG, different companies. I looked into it and wanted to know the facts. Please advise - Thank you .


Submitted by on Sat, 03/13/2010 - 21:42

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My husband lost his job because of the cash for clunkers deal. He was a used carhauler. Now he is working for a trucking coming making half of what he was making. We went without his paycheck from November through January. God kept us afloat and we never did without, however, we are still trying to catch up and keep getting notices that our CC rate are going up to 30+%. How in the world will we ever pay off our credit cards.


Submitted by on Fri, 04/02/2010 - 16:48

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Quote:

Originally Posted by Anonymous
John, I dont know where you got this thing from regus, it has nothing to do with nationalrelief.com. the address for the company is on the site, its New York, not washington.

The address that John quoted is located on the the unsolicited mail they (NDRSP); John is merely pointing out the CORRECT address.


Submitted by on Wed, 04/07/2010 - 12:56

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If you have received solicitations from a so-called "government-sponsored" national debt relief program, I would suggest it is a 100% scam because no government program to date provides any type of debt relief per se. The closest you're gonna find is an IRS "Offer in Compromise" a proposal that you make to the IRS to settle outstanding IRS tax debt based on a financial hardship.

Althought, no government program provides any type of debt settlement provision, what you may be referring to is the National Debt Relief Stimulus Plan. More on the national debt relief program is available at http://debtfreeleague.com/national-debt-relief-stimulus-plan.html. The company that provides the service is called Debt Free League out of San Diego, California.


Submitted by Vic C on Thu, 04/15/2010 - 14:20

Vic C

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I received an official looking document that appeared to come from a government agency; it was from National Debt Relief Plan. A check was attached made out to me indicating that I was eligible for relief. This is a great site because during these financially difficult times people are looking for help out of their financial bind. Thanks for the warning about this predatory tactic.


Submitted by on Fri, 04/16/2010 - 17:15

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Quote:

Originally Posted by Anonymous
It seem the president(notice no capital) is getting RID of the MIDDLE CLASS. Only people gaining are he ones that work and live off the system or should I say the one we had!


I agree! The middle class will soon be a thing of the past (unless we can outlast the obama administration)!! Come on 1/20/2012!!!!


Submitted by on Tue, 04/27/2010 - 06:08

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Quote:

Originally Posted by Anonymous
I have talked with an agency called Credit Answers, based in Texas. Do you know anything about them? Are there any debt relief companies you can recommend? We have about $50,000 in credit card debt that is becoming impossible to maintain payments. What about bankruptcy (I think chpt 7 where you make lower payments or something like that???).
Thank you!!!

There is only one debt consolidation organization that is really legitimate. Consumer Credit Counseling was the first that I know of, many years ago, to offer the ability to lower your monthly payments and still pay your debts off early by negotiating reduced or eliminated interest rates with your creditors. My husband and I needed such help back in the 90's and signed up with CCC. For a very reasonable price of something like $29/mo. (certainly more today!), they lowered our payments to a very manageable level, while paying our debts on time so our credit wasn't adversely affected. We were able to complete the program early and came out of it debt-free and with our good credit preserved. I truly wouldn't consider calling anyone else. All the other outfits in the field are for-profit, and that changes everything about their focus and commitment to their clients. Seriously, call Consumer Credit Counseling today. The one we worked with was in Arlington, TX, and they were great.


Submitted by on Tue, 05/04/2010 - 19:48

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Quote:

Originally Posted by Anonymous
I have talked with an agency called Credit Answers, based in Texas. Do you know anything about them? Are there any debt relief companies you can recommend? We have about $50,000 in credit card debt that is becoming impossible to maintain payments. What about bankruptcy (I think chpt 7 where you make lower payments or something like that???).
Thank you!!!

What you need to do is talk with a few not just one but attorneys that specialize in Bankruptcy and see what they say. They do not always reccommend you go that route and some of them will have numbers of other legitimate companies that can help people. As far as the Chapter 7 if I remember correctly wipes out all debt and then Chapter 13 is the one that restructures your debt. Check around and see what help is out there for you.


Submitted by on Thu, 05/20/2010 - 12:22

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Quote:

Originally Posted by Anonymous
Regarding Post #7 above. You say that the collections agencies charge less interest than the credit card companies involved. I had always heard that once an account goes to collections, your credit rating pumults, and there is no need to even settle with the collection agency, as they have bought the account from the creditor, pennies on the dollar, hoping to intimidate you to pay your debt in full, thus making a profit. Guess my question is.....does the collection agency turn in favorable reports to the credit bureaus on your behalf, if you settle with them, and does making the payments help your score ?


YES! The collection agency is able to wipe the collection item from your credit report as if it never existed???

The secret is you have to tell them you NEVER received any communication about the collection whether you did or not (a small lie... they know and don???t mind you saying it)

This method worked for me on small amounts ($240 for medical bills), but I had to prove that I paid/settled the amount. Originally, it showed on my report as a settled collection item which didn't help my score. I did everything in my power with the credit bureau to remove it with no luck. ONLY the collection agency was able to completely remove it as if it never happened. The collection agent accidently gave me the idea. Yes... I was very nice to her...

Lesson learned... be very nice with your collection agent. Your weakness is your strength when you talk to them. The person (not the company) talking to you is human and usually they want to help you. Make them an offer of what you can do, and ask them to provide you a letter that says they will remove the collection item from your record if you fulfill your end of the deal.

The worst that could happen is they say NO, but they will never do that...

They bought your debt for 5-10 cents on the dollar, give them 20 or 30 cents and they will kiss you for it. I know this from experience as I studied buying bad debt as investment in details, but decided it's not for me and there are better investment vehicles out there.


Submitted by on Fri, 06/04/2010 - 08:53

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It can be..
I heard about it..But still not looked deeply. I think it is SCAM. Chapter 13 it means it is too long to read...I have to check this one.

(Link Removed by Shazzers as solicitations are against TOS rules)

Link removed. Please read TERMS OF SERVICE for a more detailed description regarding advertising. Shazzers
[URL="http://debts-ireland.com/"][/URL]


Submitted by dominickcusack on Fri, 06/11/2010 - 21:12

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Well, it's a scam, sort of.
I talked with them a couple of times, asking a lot of questions.
The bottom line is that they'll work our a payment arrangement with you whereby you pay NDR monthly while paying your creditors nothing, over the course of 3 years (their most popular program). Supposedly your own debt will get degraded by as much as 45 to 65 percent, something that sounds pretty good to us honest people.

Problem is that NDR will not provide you with a written agreement between you, NDR, *AND* your creditors which really means that you're HOPING those 3 years will not turn traumatic for you, with bankruptcy, lawsuits against you, potential judgments, etc. The risk is 100% yours alone and you'll have nothing in writing to back up up should you end up being sued by creditors during that 3 year period.

In my opinion, signing up with NDR would be completely idiotic. Primarily because you're just as much at risk of losing everything as before since there's no guarantee of any type, and secondly because the efforts between you and NDR regarding your creditors are in reality based on nothing more than hope. The lady on the telephone was quite obviously with NDR fo some time, new how to answer everything, and knew how to shy away from the tough questions while still having an answer available for questions that she didn't (wasn't supposed to?) answer in detail. Besides, you'll never even know for sure if the agreement between you and NDR was successful until the 3 years is up. Do you really think your creditors will wait for 3 years and do nothing .... ???


Submitted by on Wed, 06/16/2010 - 16:45

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I just read the posts and wanted to add: I got in the mail a letter from "National Debt Relief Stimulus Plan" in a very professional-looking envelope addressed from Pennsylvania Avenue. Thinking this was the real deal I called the contact number only to reach the voicemail of someone named "Brandon." That really made me rethink my attempts at debt relief!


Submitted by on Wed, 07/14/2010 - 11:17

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What happened to the idea of being responsible for your action? Everyone is looking for a quick fix and not taking responsibility. Sickening! I have a ton of debt! I'm not proud of it, but I've rearranged my finances and I'm making my payments. I'm not looking for someone else to foot the bill. Come on people!


Submitted by on Thu, 07/29/2010 - 21:07

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Seriously and Unbelievable.
I don't really think that is the message on this board. If you think for a second that the Banks and Credit Card companies aren't taking advantage of the consumers then you need to think again. I have seen these companies double and triple interest rates as well as raise the minimum payment to the size of a mortgage payment - for ABSOLUTELY NO REASON! In this situation the credit card company caused the financial hardship. I think it is pretty sad that one has to use a debt relief company or a debt management company because the bank or credit card company would not work with them. There are many responsible people that have unexpected things that come up - medical situations, job loss etc. Sometimes it is poor choices and falling into their trap - however, it still does not give banks and credit card companies the right to take advantage of the consumer the way they do.


Submitted by on Mon, 08/02/2010 - 16:57

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Is "National Debt Relief Agency" accountable to the Federal Government for their offers and are they a Scam? Is the "Credit Card Accountability, Responsiblity and Disclousre Act of 2009", a program to eliminate the Interest Rate and make monthly payments on the Principal Amount of Credit Cards?


Submitted by on Tue, 08/24/2010 - 11:46

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Quote:

Originally Posted by Anonymous
I just wanted to say that I received a letter regarding national debt relief program as well. I am already with a company - CareOne Credit Counseling AKA CareOne Services. They have an A rating with the BBB and they do distribute payments monthly to your creditors. I know this because there are times that I have had to change the dates and I have had creditors call to confirm that I'm making a payment...other than those instances - creditors don't call me. They submit offers on your behalf and I did have a few creditors want more...but I'm still paying less overall through them than I was on my own and again, no calls from creditors anymore. You do pay a monthly fee to the company...in my experience, their customer service is impeccable.


I have the same experience as mentioned above with Consolidated Credit Agency.


Submitted by on Thu, 08/26/2010 - 19:04

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Quote:

Originally Posted by Anonymous
Well, it's a scam, sort of.
I talked with them a couple of times, asking a lot of questions.
The bottom line is that they'll work our a payment arrangement with you whereby you pay NDR monthly while paying your creditors nothing, over the course of 3 years (their most popular program). Supposedly your own debt will get degraded by as much as 45 to 65 percent, something that sounds pretty good to us honest people.
Problem is that NDR will not provide you with a written agreement between you, NDR, *AND* your creditors which really means that you're HOPING those 3 years will not turn traumatic for you, with bankruptcy, lawsuits against you, potential judgments, etc. The risk is 100% yours alone and you'll have nothing in writing to back up up should you end up being sued by creditors during that 3 year period.
In my opinion, signing up with NDR would be completely idiotic. Primarily because you're just as much at risk of losing everything as before since there's no guarantee of any type, and secondly because the efforts between you and NDR regarding your creditors are in reality based on nothing more than hope. The lady on the telephone was quite obviously with NDR fo some time, new how to answer everything, and knew how to shy away from the tough questions while still having an answer available for questions that she didn't (wasn't supposed to?) answer in detail. Besides, you'll never even know for sure if the agreement between you and NDR was successful until the 3 years is up. Do you really think your creditors will wait for 3 years and do nothing .... ???


Bravo! Someone FINALLY had read a Client Agreement! Just because you are working with the debt-settlement company, you are not protected from the ugly lawsuits! Your only hope if you file an answer with court clerk ASAP and save as much $$ for the settlement if you can...


Submitted by precise212 on Thu, 08/26/2010 - 21:31

precise212

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Quote:

Originally Posted by Anonymous
Remember, if you settle for over $600 in most states, you will be taxed on whatever portion you have been forgiven as if it were net income - you get a 1099 form. And the credit bureau report will show "Settled for Less Than Full Amount," and will remain that way and continue to affect your credit score until you pay the remainder. And they say it 'falls off' in 7 years, but when I applied for a home loan, they asked me about a credit card that was "Canceled by Issuer" (bad) over12 years prior (which I explained was because I only used it twice but liked my other card better so it closed due to no activity) - So just a caution, they can SEE a lot further back, it just no longer affects your credit score.


By LAW (Fair Credit Reporting Act) it should be removed after 7 years, but agencies favor their customers (the creditors), you must check your credit record periodically and pressure them to remove out of date and incorrect information. While they're supposed to do it automatically (and some will), the squeaky wheel gets the grease.


Submitted by on Tue, 09/07/2010 - 13:51

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Quote:

Originally Posted by Anonymous
I agree! The middle class will soon be a thing of the past (unless we can outlast the obama administration)!! Come on 1/20/2012!!!!


I believe you are shy by one year... we VOTE in 2012 for the next President, that takes place the next January, so 2013.


Submitted by on Tue, 09/07/2010 - 14:16

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Thanks for the heads up on the 1101 Pennsylvania Ave NW 6th floor. I just received one of these notices in the mail today. Like the old saying goes if it looks to good to be true it probably is. Glad I had the common sense to research on the computer before calling. The goverment can bail out business but with all the credit card changes it has made my payments go up and now I am struggling. It also reduce my credit score by lowering my limit even tho I had always paid on time and more than minimum. Now with all the changes it has increase my interest rate, lower my limits, shot my credit score all to heck and raised my payments. Where is out relief? I was doing fine until the goverment got involved.


Submitted by on Tue, 09/07/2010 - 14:45

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Quote:

Originally Posted by mistyblue901
I am currently in Chapter 13 and I am having a difficult time paying on the monthly plan, a payment plan that I could not afford in the beginning but trusted my Attorney who informed me that I can modify it. Unfortunately the Judge rejected it and now I am expected to pay that amount. How did it end up being so high, mean test, I was informed. Well, I am at the risk of it being dismiss because I am only sending in the money I can afford. I received a letter in the mail from National Debt Relief (Settlement Company) claiming they can reduced my payment down to what I can afford. They claim they are a governmental agency and advise me to stop sending money to the Trustee and enroll into their program. Have anyone heard of National Debt Relief Plan?


National Debt Relief Program is trying to make it sound like they are a government-backed program and they are not!!! Don't be fooled. Try this company I trust and use...Total Debt Solutions...email this guy Jed Steward [jsteward@totaldebtservices.com] and ask him about the details of really truly getting your stuff paid off. By the way, sue your attorney for malpractice! You got robbed being told to go Chapter 13 if you couldn't afford to make the payment! The whole point is to restructure so you CAN make the payments. Good luck! Mary Avila


Submitted by on Thu, 09/16/2010 - 11:25

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National Debt Relief Stimulus Plan is a scam !!!!
Thank Goodness I became aware of it after being in the so called "plan" before they
got any more of my money.
Any time I had any questions it was very difficult to reach someone with answers.
{So many phone numbers,just to make the situation more confusing.}
I was told not to speak to any Credit Card Reps ....so phone calls from them went
on day and night...my credit score took a big hit.
National Debt got my money for at least 3 months....got their monthly fee,and was
told that they would not contact creditors for several more months !
All the paper work they send and E Mail messages are part of the scam to make
it look good.
It became so confusing and unnerving that I knew I had to pull out of this "Scam."
I lost money,but at least I woke up before I lost any more.
It was a hard lesson learned.
I hope no one else becomes involved in this situation


Submitted by on Sun, 05/08/2011 - 05:53

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