Consumer complaint received 2024-06-29
Product: Debt or credit management — Debt settlement
Issue: Confusing or misleading advertising or marketing — 
Company: Clarity Debt Resolution, Inc (DC)

I entered into a debt management agreement with a company under the name of XXXX XXXX. Upon initial review, XXXX seemed to be a legitimate debt management company and promised to help settle debt and only collect on debts that were settled. However, the account was then transferred to Clarity and an account created under XXXX to house my payments for settlement discussions. 

I was explicitly instructed to stop making all payments to my credit cards. Further, the contract states that settlement negotiations are to begin once one of the accounts reaches 25 % coverage in the account. In total, 5 accounts were placed with Silverlake/Clarity/Forth for settlement. There is now enough money in the account to begin negotiations on XXXX of the XXXX accounts and there has been no remediation or settlement confirmation. 

I am facing a security clearance investigation and felt that it was suspicious that I have not heard anything from this company regarding any settlements since my first payment on XX/XX/year>. I began doing research to explain why I have debts now delinquent over 120 days and that I was attempting to remediate the problem by going with XXXX XXXX Upon further review, once the account was handed over to Clarity, the litany of reviews on the Better Business Bureau clearly demonstrates this is a predatory company by claiming it is operating under Federal laws while also collecting 25 % fees on settlements that it has not yet attained per the agreement. To note, Clarity is under XXXX years old and has amassed multiple complaints. 

According to your website XXXX XXXX XXXX XXXXXXXX ) this string of companies clearly falls under ever single description of the companies to avoid that you list. Your website states, avoid companies that - 1 ) Charge any fees before it settles your debt ( which is not described clearly by XXXX ) ; 2 ) Represents that it can settle all of your debt for a promised percentage reduction ( paperwork signed states 50 % assumption and misrepresents to client the total amount that will actually be charged ) ; 3 ) Touts a " a new government program '' to bail out personal credit card debt ( quoted from XXXX email XXXX " The FTC instituted guidelines for companies who are endorsed by the American Fair Credit Council to follow, which we adhere to thoroughly. '' Along with other claims in the email to confuse the reader into thinking that they are presenting the customer Federally regulated debt relief ) ; 4 ) Guarantees it can make your debt go away ( promised and pushed over phone ) ; 5 ) Tells you to stop communicating with your creditors ( of which it did, and I unfortunately believed this was the resolution to help me ) ; 6 ) Tells you it can stop all debt collection calls and lawsuits ( states that to expect these, but then has taken no steps in 6 months to avoid lawsuits or assist in settlement ) ; 7 ) Guarantees that your unsecured debts can be paid off for pennies on the dollar ( clearly states an assumption of 50 % debt reduction in the contract signed, while collecting a 25 % settlement fee ). 

XXXX has fit into every one of these categories listed on your own website and something must be done to protect the consumer. Along with the multitude of Better Business Bureau complaints filed against XXXX and XXXX, with all responses somehow positive by the company that they adhered to their promises. 

So far, I have made payments XX/XX/year> through XX/XX/year> totaling {$4100.00}. In my account I only have {$3100.00} after the collection of fees for settlements that have not yet occurred. Clarity has collected a total of {$900.00} in fees, in violation of their agreement that they would be collecting from settlement fees. XXXX has collected {$76.00} in custodial fees. 

Upon realizing the predatory nature of the company, I have immediately reached out to creditors and have contacted my bank to block all future transactions from these companies. Additionally, I am seeking help through a DOJ approved non-profit credit counselor to aid in consolidating payments legally while also gaining help with budgeting.

However, I must now face the consequences of these horrible companies and a dismally low credit score while trying to obtain a security clearance. These companies must be exposed and stopped for their predatory and misleading practices.

If you require any documentation or quotes please contact me for further information. Thank you for your time.