Reducing Debts at Credit Solutions of America
Credit Solutions America (CSA) is a company that is headquartered in Richardson, Texas but has many branches in many other states. The company has several customers who are enrolled in debt reduction programs. The company helps those customers who do not want to file for bankruptcy, but they would wish to settle their debts. Despite its years of success, the company was sued in eight states after it was found to be engaging in fraudulent activities. Although the methods employed by the company in their debt reduction program puts the customers in a stressful situation, they are left satisfied in the end. However, for every satisfied customer who posts a complaint on the website, there are ten to twenty who were upset in various aspects of CSA debt reduction program. Some customers were assured that their troubles would be taken care of by CSA, but they ended up being sued by their creditors. Some clients pointed out that CSA promises them that they will negotiate with the creditors but the company fails to negotiate with the creditors, and the customers end up being frequently harassed and threatened with lawsuits. Following their dissatisfaction, many customers lodged their complaints with Better Business Bureau and state officials. The customers were upset that their debts were increasing instead of reducing as promised by CSA. The attorney generals of eight states sued the company for fraud on behalf of the residents. The company was accused of deceptions by falsely promising debt reductions of up to 60%. The company was also accused of being involved in fraudulent activities by asking its customers to stop paying their debts when they knew it would lead to late fees, lower credit ratings, and other penalties that were not disclosed to customers. In all these allegations, the company put a strong defence pointing out that the customers were to blame for not following instructions such as not contacting their creditor directly. Credit experts were of the view that customers need to negotiate with their creditors instead of seeking help from CSA. The company has maintained that it upholds high ethical standards and is committed to its customers.
CSA was established to offer solutions to its customers. The solution, however, is not the best. Customers have to endure a lot of harassment and threats of lawsuits from their creditors. The customers also have to pay CSA a percentage of the money for work which they claim to do, but they might not do. Many customers’ credit rating eventually go down, their fees up, file for bankruptcy, and their assets sold to recover debts. Promising to deliver something which you end up failing to deliver is unethical. Selling a product to a customer without giving out full details is also unethical. CSA might not be necessary. Instead, the best solution is for the customers to negotiate directly with their creditors.
CSA was established to offer solutions to customers who were unable to pay back their debts. Although the company offers to help its customers to negotiate for softer terms of debt repayments, the customers had to make some sacrifices. The customer needs to stop debt repayment, and further contacts with their creditors as CSA takes over. However, some customers complain that the company did not deliver its promise or they were not informed of other details. The company ended up being sued but defended itself against any unethical practice. It has continued to claim that it upholds ethical practices.
