United Debt Counselors, LLC CFPB Complaints

2000 Latest Complaints

Date Received	Timely Response	Product	Issue	State / Zip	Submitted Via	Tags
01/30/2020	Yes	Money transfer, virtual currency, or money service Debt settlement	Confusing or missing disclosures	AZ 85388	Web	Older American, Servicemember
i enrolled with united debt counsellors, llc ( udc ) to help me settle my credit card debts with five credit card companies on XX/XX/2019 promising to be upfront without hidden fees. i was told it would charge 18 % negotiation fee on the original balance of the credit card upon enrollment ; a monthly udc management fee of {$18.00} ; a monthly global client solutions ( gcs ) of {$9.00} ; and a non-refundable fee of {$290.00} ; that there will be no hidden fees. the disclosed service fee total was {$4900.00} ( i just calculated this disclosed fee and it is 19.12 % excluding monthly udc fee and gcs fee ). on that count alone, it was dishonest in declaring it will only charge 18 % and there are no other fees ( on the phone the monthly udc and gcs fees were not mentioned ). at first i was just dissatisfied with their services and wrote to them on XX/XX/2019 asking to terminate the contract and be refunded with all excess the {$7600.00} i have deposited from XX/XX/2019 till XX/XX/XXXX, XXXX. after deducting the 18 % negotiation fee for the only company negotiated after 10 months of enrollment, the {$290.00} non-refundable enrollment fee, the {$18.00} x10 months udc management fee ; the $ XXXXx10 months gcs fee ; the $ XXXXx1 month to start repaying the balance of the negotiated credit card ; the excess amount to be refunded to me totaled {$4100.00}. on XXXX i followed up the call and only got voice message and so i left voice message. i called several times still only able to leave a voice message. finally got connected to a " XXXX '' who told me none of the funds i already submitted will be refunded. i told XXXX it is not legal for them to retain what they have not earned. then last week i received a call from a " XXXX '' saying i can be refunded around {$2000.00}. i should have done this earlier, but when i added all the service fee that was part of the monthly deposits i am to deposit if i stayed with them for the 36-month term of the program, udc would have collected {$11000.00}, not {$4900.00}. as the total 18 % of the balance of all the credit card enrolled will only be {$4600.00}, udc hid {$7100.00} additional fees not discernable unless looked into very closely. it was presented as " so many months, of their service fee would be so much, and so many months, so much etc., but no sum total. i thought that that column that showed their " service fee '' was their 18 %. i was wrong. the total of that column for " service fees '' is 48 % including the " 18 % '' negotiation fee and if including udc and gcs monthly charges, that adds to 50 %. this is not right. this is the most devious of all the debt counseling services i ever experienced. please note in the attached image that the settlement estimated cost show a service total service fee of {$4900.00}. however, in the page that showed what udc will collect as service fee was broken down into 15 months with varying amounts for different number of months, it does not show the total and gives the impression that this is the 18 % estimated negotiation fee but would start to be collected way in advance of negotiating anything. in my case, the negotiation started XXXX XXXX. it already collected more than half of its total calculated negotiation fee.
02/08/2022	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam	CA 93436	Web	Older American, Servicemember
In or around XX/XX/XXXX, I saw an ad online for help with debt settlement and called XXXX for help. On XX/XX/XXXX, XXXX representative XXXX XXXX came to my house, which I share with my partner XXXX XXXX. XXXX and I had both fallen behind on credit cards. At this meeting, XXXX told us that XXXX could lower our debts by XXXX XXXX, that they are experts with handling creditors, and that they would be in constant communication with us to negotiate down our debt. Based on this, we both enrolled in the program and began making monthly payments. Months passed and it was unclear to us what, if anything, XXXX was doing for us. It was hard for us to connect with anyone when we called and our calls largely went unreturned. Meanwhile, throughout XXXX and XXXX, debt collection lawsuits and default judgments were piling up against us from creditors. Each time we got paperwork, we sent it to XXXX but received no substantive update or response. Agents merely told us they would take care of it. They never recommended getting an attorney or formally responding to the lawsuits. We grew increasingly frustrated with this lack of communication or action. Feeling duped, we canceled our contracts with XXXX in or around XX/XX/XXXX. We received a partial refund of our escrowed payments minus fees and other charges. We went to our local legal aid for help and the lawyer helped us get copies of our documents. The lawyer explained the documents show many problems : contract inconsistencies on charges, XXXX did nothing on XXXX account and very little on mine despite about XXXX XXXX and XXXX XXXX of our payments going toward XXXX fees. Also, our XXXX contracts state that they will only begin to reach out to a creditor when XXXX XXXX of our debt balance is in escrow. However, at the rate of monthly payments and the XXXX-month term of our program, it is not even possible for us to save enough money for some of our debts to meet this requirements. It is also our understanding that XXXX is not properly licensed in California to do this work. We were set up to fail by XXXX. We paid nearly {$20000.00} dollars to them, with nothing to show for it. Instead we are in a worse position with our debts than when we were enrolled. I am XXXX XXXX old and XXXX is XXXX XXXX old. We are low-income seniors on a fixed income and this has been extremely stressful and harmful to our health.
01/08/2020	Yes	Debt collection Credit card debt	False statements or representation Attempted to collect wrong amount	AZ 85711	Web	Older American
I'm a XXXX year old, retired, widow living on social security. In XX/XX/XXXX UDC, LLC sent me a " pink '' misleading threatening letter. Within said letter were references to UDC XXXX and United Debt Counselors. The letter referred to a credit card debt of {$37000.00}, with an estimated settlement amount of {$16000.00}, current credit card payments of {$1100.00} and new proposed program payment of {$560.00}. Stated I should contact their offices within 10 days of receipt of the letter regarding adjusts of my credit accounts and " failure to make your minimum monthly payments will likely result in interest accruing on your unsecured credit balances at an unreasonable rate. ( In addition, penalties may accrue in the event of unpaid obligations. '' The problem being I've never had credit cards with the financial institutions claimed. In XX/XX/XXXX, the Federal Trade Commission entered into a Stipulated Order for Permanent Injunction with United Debt Counselors wherein United Debt was ordered to pay {$9.00} XXXX. In that complaint United Debt misrepresented that consumers had credit card debt and charged advance fees for debt relief. Why is this company still in business?? I contacted the company and was told they were not " attempting to collect a debt, '' but were a debt relief company who were offering their services " to alleviate credit card debt. '' Which is a whole lot different that what their " pink '' letter purports. One would read the wording of the letter and assume that if we did not call them within 10 days I wold be subject to interest accruing at a unreasonable rate. The Federal Trade Commission or Consumer Financial Protection Agency should prevent companies like United Debt Counselors from pressuring consumers through the use of this type of intimidating, misleading letters which are only meant to coerce consumers to fall into their trap and scam.
05/10/2019	No	Money transfer, virtual currency, or money service Debt settlement	Confusing or misleading advertising or marketing	AL 363XX	Web	Servicemember
BLUF : This company is using intimidating verbiage to pressure consumers into working with their company. They also falsely claimed they are approved through the FTC, which stated they do not deal with these companies. Detailed information : Please see the attached letter that I have received. I called the company and they stated that they have approval through the FTC to receive my information from the credit bureaus to send letters to consumers and that their verbiage is also approved. They stated that their information includes any consumer with greater than {$4000.00} XXXX in unsecured credit debt. The company also stated that they negotiate with the credit card companies to pay off balances at up to 40 % off the balance. And they organize a savings account to save up and pay off this amount. The call was possibly recorded by the company, it took place on XXXX XX/XX/2019 around XXXX. I did not provide any information to this company. I did not attempt to work with them to settle any debt. I told them I do not have credit card debt with any of the listed banks, especially nothing over {$4000.00}. The employee offered for me to call back and possibly get someone with a working computer, and they could possibly remove me from their contact list. I did not call the company back. I found the CFPB after calling the FTC to inquire about their procedures. Company information : United Debt Counselors , LLC XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX XXXX
07/15/2017	Yes	Debt collection Credit card debt	False statements or representation Indicated you were committing crime by not paying debt	FL XXXXX	Web	Servicemember
when I contacted United Debt Services, they explained to me that the contract is for 24 months, and the first three payments will be for services. After that my payments was XXXX to pay down debts. At the end of the contract an agent called me and said that I dont have enough money to pay my last credit card. So she told me in a nasty tone that I had to make 10 more payments of XXXX if I wanted to pay off my debt. I aceptted these terms. Five months after that I requested the summary of payments. And I told them that XXXX had offered 50 % off. They said they would call me later. And they said that had an offer to pay my credit card. I told them that I wanted to pay off at the moment because I had a hard time to get a job at a financial institution. But when I noticed that i paid over I called United Debt Services and I said I wo n't pay anymore because I considered that I paid already all and more. Now United Debt Services closed my account and sent to me a check for XXXX. My last credit card XXXX was supposed to pay XXXX according to them. Only I needed XXXX to clear the debt. I appreciate if you can help me they appear to be trying to get more money from me.This is not what I contracted with them. They said that I need to read the contract.
04/11/2017	Yes	Other financial service Debt settlement	Fraud or scam	NY 117XX	Web
Back in XXXX of XXXX I had credit card debt. I regretfully signed up with United Debt Counselors to try to help me. They took close to {$5600.00} from me and did nothing. When I withdrew from this program I they refused to give me all of my money back Just gave me {$960.00} When I called the credit card company they advised me to wait until The accounts " charged off '' and I would work a payment plan with them. I spoke to them on XX/XX/XXXX. When I called them on XX/XX/XXXX, the day they suggested and they told me it was already sent to a third party. When I called the third party they said it was transferred to an attorney. When I called the attorney they would not speak to me. They need to speak to United Debt Counselors. I am no longer with the fraudulent company. But they refused. All I wanted to do was do the right thing and I have been given the run around and getting deeper and deeper in debt. Please help me.
05/14/2019	Yes	Debt collection Credit card debt	Attempts to collect debt not owed Debt is not yours	TX 79902	Web
Today I got another threatening letter from UDC, LLC XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX ( XXXX-XXXX-XXXX-XXXX ) telling me I owe money. I don't owe them any money because its 's a scam. I received a second letter the same day I received the threataning letter from UDC, LLC XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX ( XXXX-XXXX-XXXX-XXXX ) and they want to give me a loan for almost the exact amount of money I owe the other company. Please, stop UDC, LLC from sending threatening letters to people that don't owe them money. Also, shut down XXXX to keep them from pretending to save people from fake debt by giving them real debt. A scam like this can easily ruin the life of someone that can least afford it.
11/28/2019	Yes	Credit reporting, credit repair services, or other personal consumer reports Credit repair services	Confusing or misleading advertising or marketing	NY 10014	Web
I receive at least 1 letter a week from companies like XXXX that offer some kind of credit repair service. I'm writing to complain because the language they use is very misleading and is intended to trick people into thinking they have to settle an outstanding debt immediately. Language like : -Please contact our office at XXXX within 10 days of receiving this notice. -Failure to Call -Will likely result in interest accruing on your unsecured credit balances This kind of misleading notices only end up scaring, confusing and putting more stress on people who are already struggling to pay their bills.
02/04/2020	Yes	Debt collection Credit card debt	False statements or representation Impersonated attorney, law enforcement, or government official	TX 782XX	Web
UDC, LLC, in XXXX, Texas, sends letters trying to trick people into calling by giving indications that debt is past due when they are really just trying to refinance it. They send a letter on pink paper - historically the color of past due notices - using a style and language that makes people think their debt is past due. For example, the letter begins, " Please contact our offices at XXXX within 10 days of receiving this letter regarding the adjustments of your credit accounts. '' Also see other language in the letter ( attached ). These tactics should be considered a violation of UDAAP.
10/27/2019	No	Debt collection Credit card debt	False statements or representation Attempted to collect wrong amount	NY 10012	Web
I am contacting you on the subject of a letter I received from UDCAmericas. The reference is XXXX. This letter states that it is a final attempt to contact me regarding the adjustment of my credit account. The leader is designed in such a way that it leads me to believe that a failure to call them will result in financial issues. I have no issues on my credit card accounts, no debt due. This is just a tactic used to extort money from some people. I wish that that they remove me from their database and stop using such aggressive and forbidden marketing tactics
01/26/2020	Yes	Debt collection Credit card debt	Attempts to collect debt not owed Debt is not yours	NY 11211	Web
I have received threatening letters for credit card debt totaling {$37000.00} which is a false accusation. I don't have any credit card debt. The website they post, www.udcamerica.com does not open and seems to be a false site. I have received 3 letters sent to my previous address dated XX/XX/XXXX, XXXX and XX/XX/2020. I would like to report this fake company making these false accusations and requesting payment to steal money from the general public.
06/21/2019	Yes	Debt collection Credit card debt	False statements or representation Indicated you were committing crime by not paying debt	CA 92660	Web
XXXX sent me a misleading solicitation letter. It was designed to give me the impression that I would be subject to interest accruing on my credit card debt at an unreasonable rate, and, in addition, penalties. The letter insinuated that this was due to Failure to Call
02/15/2023	Yes	Credit reporting, credit repair services, or other personal consumer reports Credit repair services	Unexpected or other fees	TX 77520	Web	Older American
Every time I was close to paying the debt off, the company would add another 6 months to pay it off.This happen 3 times.
07/08/2022	Yes	Debt collection Other debt	False statements or representation Attempted to collect wrong amount	NY 14838	Referral

05/05/2022	Yes	Money transfer, virtual currency, or money service Debt settlement	Confusing or misleading advertising or marketing	CA 94518	Web	Older American

03/10/2021	Yes	Credit reporting, credit repair services, or other personal consumer reports Credit repair services	Fraud or scam	CA 95820	Phone	Older American

06/03/2020	Yes	Credit reporting, credit repair services, or other personal consumer reports Credit repair services	Confusing or misleading advertising or marketing	VA 22304	Postal mail

04/30/2020	Yes	Debt collection I do not know	Written notification about debt Didn't receive enough information to verify debt	NY 115XX	Web

09/28/2019	Yes	Debt collection I do not know	Communication tactics You told them to stop contacting you, but they keep trying	VA 22193	Referral

06/10/2019	Yes	Money transfer, virtual currency, or money service Debt settlement	Problem with customer service	GA 30309	Fax

04/24/2019	Yes	Checking or savings account Checking account	Managing an account Deposits and withdrawals		Phone	Older American

04/22/2019	Yes	Debt collection Credit card debt	Took or threatened to take negative or legal action Seized or attempted to seize your property	NY 11419	Referral

03/26/2019	Yes	Credit card or prepaid card General-purpose credit card or charge card	Other features, terms, or problems Other problem	CA 94301	Referral

03/19/2019	Yes	Debt collection Credit card debt	Written notification about debt Didn't receive enough information to verify debt	NY 11704	Referral

03/06/2019	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam	VA 22660	Referral

03/06/2019	Yes	Debt collection Other debt	Communication tactics You told them to stop contacting you, but they keep trying	CA 91304	Referral

02/12/2019	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam		Phone

02/05/2019	Yes	Debt collection I do not know	Attempts to collect debt not owed Debt was paid	TX 75051	Web

01/09/2019	Yes	Debt collection Other debt	Communication tactics Frequent or repeated calls	MI 48066	Web

11/28/2018	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam	FL 33024	Web

10/18/2018	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam	FL 33024	Web

04/24/2018	Yes	Debt collection Other debt	False statements or representation Attempted to collect wrong amount		Referral

09/26/2017	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam	LA 70605	Postal mail

08/16/2017	Yes	Money transfer, virtual currency, or money service Debt settlement	Fraud or scam	NY 11210	Referral

03/21/2017	Yes	Other financial service Debt settlement	Advertising and marketing	MI 48864	Web

03/09/2017	Yes	Other financial service Debt settlement	Fraud or scam	NY 14618	Web

02/01/2017	Yes	Debt collection Credit card	Disclosure verification of debt Not given enough info to verify debt	AZ 85902	Phone