Consumer complaint received 2025-08-05 00:00:00
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Collected or attempted to collect exempt funds
Company: ClearOne Advantage, LLC
State: CA

Complaint narrative:
Formal Consumer Financial Protection Bureau ( CFPB ) Complaint To Whom It May Concern, I am submitting this formal complaint on behalf of my mother, XXXX XXXX XXXX, a XXXX senior citizen living on fixed Social Security income. This complaint concerns ClearOne Advantage and their potentially fraudulent, abusive, and deceptive practices involving so-called debt consolidation services. 

XXXX. Excessive and Unjustified Charges ClearOne Advantage charged exorbitant feesranging from {$420.00} to $ XXXX individual debt settlements. These fees often exceeded 3050 % of the negotiated settlement amounts, which is a violation of 16 CFR 310.4 ( a ) ( 5 ), the FTC 's Debt Relief Rule. It is illegal to collect fees before a written settlement agreement is reached and at least one payment is made to the creditor. 

XXXX. Deceptive Practices and Misrepresentation In the XXXX XXXX account example, ClearOne claimed a settlement that saved money. Yet credit reports show the account remains as a charge-off with unresolved balances, damaging her credit profile. Under Section 5 of the FTC Act, companies are prohibited from misleading consumers about the outcome of their services. 

XXXX. Financial Abuse of an XXXX XXXX XXXX XXXX, aged XXXX, had over {$290.00} {$460.00} withdrawn monthly by ClearOne even during periods without active debt settlements. This could be considered financial abuse under XXXX  XXXX and Institutions Code 15610.30 and the Elder Financial Abuse Act, which prohibit the wrongful taking of assets from an elder. 

XXXX. Negative Credit Reporting Despite Payments Despite enrolling in ClearOnes program, multiple accounts including XXXX XXXX, XXXX  XXXX, and XXXX remain marked as charge-offs on her credit reports. This contradicts the companys promise to help 'repair credit ' and has directly harmed her ability to access housing, credit, and financial dignity. 

XXXX. Violations of the Fair Debt Collection Practices Act ( FDCPA ) Duplicate debt listings ( e.g., XXXX  XXXX ), miscommunications with creditors, and automatic withdrawals without documented consent may all constitute violations of 15 U.S. Code 1692e, which prohibits deceptive and misleading collection practices. 

XXXX. Financial Harm and Disproportionate Burden XXXX XXXX 's total debt was approximately {$17000.00}, while her annual Social Security income is only ~ {$11000.00}. This means she was burdened with debt over 150 % of her yearly income. Her credit score has dropped to XXXX XXXX, and many accounts remain in collections despite claimed settlements. 

Conclusion and Requested Action Given the clear legal and ethical violations, we respectfully ask the CFPB to : - Investigate ClearOne Advantage for elder financial abuse, deceptive practices, and fee violations. 
- Order immediate refund of all unjustified fees paid ( estimated over {$4000.00} ). 
- Require removal of misleading or unresolved debt marks from credit reports. 
- Notify California regulators, including the Department of Financial Protection and Innovation ( DFPI ). 
- Ensure permanent cessation of all future deductions from her account.

Company response to consumer: Closed with explanation