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CCDN Debt Elimination scam

What can you tell me about these companies that offer a so called "debt elimination" program? Are they legit?

I found a site that states if you give them $3000.00, your statement payment + $43.00 they will make the payment on your account with their check stating they are the new owners of this account and if cashed the bill is paid in full and that the credit card company now has a contract. Once the check is cashed you are free from it and they take it over??? Could this be true??? The name of the company is: Credit Collections Defense Network. Have you heard of them??

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Bill's Answer
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Bills.com | Find Learn Save

Editor's Note: Since this answer was written, legal action has been taken against Credit Collections Defense Network and various related persons and entities.

 The program described by Credit Card Defense Network is a variation on an old idea in the world of debt relief called "debt elimination." The idea of having your unsecured debts simply disappear may sound too good to be true-  and it is too good to be true. Despite the legalese and financial lingo used by debt elimination companies, the fact of the matter is that they are a scam which preys on vulnerable consumers who are struggling to find a solution to their financial problems. I strongly advise you against enlisting the help of any company that claims it can simply "take over" or "eliminate" your debt. You would almost certainly end up in a much worse financial situation than the one you are already facing.

The basic idea behind "debt elimination" programs is that unsecured debt, such as credit cards, is somehow illegal. Various debt elimination providers offer slightly different legal justifications for their schemes. Some say that the debt is illegal because the Federal Reserve did not authorize banks to "create" money, which they claim that banks are doing by giving you a credit line. Others say that the credit card contract is void because many consumers are sent the terms of the credit agreement after they accept the card. Some programs also claim to  "take over" your debt, having consumers sign a document assigning the debt to the debt elimination company. These arguments, and the various others I have heard from "debt elimination firms," are bogus and designed to deceive working people out of their hard-earned money. No matter how many specious legal documents a debt elimination company may have you sign, you will still be responsible for paying your debts. If you would like to see the Federal Reserve Board’s position on “debt elimination” and its legality, you can visit www.federalreserve.gov.

Thankfully for consumers, there are other options available, such as credit counseling, debt consolidation, and debt settlement. Filing for bankruptcy protection is an option as well, for those whose debt load and income make other options impossible to afford. Please read more about the various options available to assist consumers in resolving their debts.

I wish you the best of luck in finding a workable solution to your debt problems.

I hope that the information I have provided helps you Find. Learn & Save.

Best,

Bill

bills.com

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5 Comments

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  • BA
    Apr, 2009
    Bill
    Audrey, Bills.com is an 'information only' website and we do not provide any services that we would debit your bank account. You must have signed up with one of our partners. Please contact the company for any questions that you have.
    0 Votes

  • AK
    Apr, 2009
    Audrey
    Received a email from you people stating you deducted $224.41.11. would like to know who two and what has happen to the rest of the money you have received from me! Thank you Audrey Kelton
    0 Votes

  • 35x35
    Apr, 2009
    Phil
    Credit card debt is a problem that many people prey on the unsuspecting victims who are looking for a way out. There are ways out of this.
    0 Votes

  • TR
    Mar, 2009
    Tiffany
    The one company I found that helped me with my debt is Credit Card Debt Reducers. They took late and overlimit fees off my card.
    0 Votes

  • GW
    Mar, 2009
    George
    It is a shame that so many people are taking advantage of people this way. There are many solutions that actually assist people in getting rid of debt legally and without gimmicks. It is all about proper planning and focus and the goals can be accomplished, debt elimination is obtainable and should be everyones goal right now. It will allow you to survive slow times and possible be able to grow enough savings to retire happily . If you are unable to get control of your debt I strongly you urge you to find some help , but do be careful there are more scams out there then solutions.
    0 Votes

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