Consumer complaint received 2025-06-11 00:00:00
Product: Debt or credit management — Debt settlement
Issue: Charged upfront or unexpected fees — 
Company: NATIONAL DEBT RELIEF LLC
State: SC

Complaint narrative:
Overview & Timeline of Events : On XX/XX/XXXX, I enrolled in a debt relief program through National Debt Relief ( NDR ) to resolve my unsecured credit card debt, which totaled {$28000.00} at the time. I was told that with monthly deposits of {$460.00}, I could be debt-free in approximately 48 months, and that NDR would negotiate my debts with creditors for a significantly reduced amount. The projected program cost was {$22000.00}, including fees, and I was led to believe I would save a considerable amount over time. 

I was also assured that fees would only be collected after a debt was successfully settled as shown in NDRs Program Overview and Potential Savings document, which Ive attached. 



My Actual Experience : From XX/XX/XXXX to early XXXX, I made consistent biweekly deposits totaling {$10000.00}, as confirmed in my XXXX account screenshot. However, upon reviewing my transaction history ( attached ), I discovered : Settlement fees charged by NDR : {$9600.00} Legal fees to XXXX XXXX XXXX : {$410.00} Monthly service fees : {$220.00} Creditor payments made : {$8200.00} Processing/transaction fees : {$100.00} Account balance at closure : {$0.00} Many early payments went almost entirely to fees. In several months, little or none of my money went to creditors despite regular contributions. 



Settlement Outcomes : NDR resolved six creditor accounts, and Ive included settlement letters/screenshots as evidence. Most savings were negligible when factoring in NDRs fees. For example : XXXXXXXX XXXX  Balance : {$5900.00} Settled : {$4300.00} Total with fees : {$5800.00} Actual savings : ~ {$85.00} This pattern was repeated across multiple accounts. In some cases, settlements exceeded 7080 % of the original balance before fees were added leaving me worse off than I would have been managing my debt directly. 



Snowball Comparison : Before enrolling in NDR, I had created a debt snowball payoff plan in XX/XX/XXXX. At that time, my total debt was {$27000.00}, and my minimum monthly payments were approximately {$610.00}. 

According to my projections ( attached screenshot ), I would have been debt-free in 63 months and paid approximately {$8600.00} in interest over that time totaling around {$36000.00} out-of-pocket across five years.

Instead, I paid {$10000.00} into NDR over 18 months, and still left the program owing {$19000.00} in unresolved debt. 



NDRs Recommendation to Use XXXX XXXX  : After expressing concern to NDR in early XXXX about the slow pace of settlements ( some debts had still not been addressed after 1214 months ), I was recommended to XXXX XXXX where I was approved for a personal loan to consolidate what remained. 

I want to clearly state that the loan itself was not issued by NDR, but it was directly recommended by NDR representatives as my best option when their program failed to meet expectations. XXXX XXXX loan was for {$19000.00} at a 25.155 % APR, which Ive included in a separate CFPB complaint. 

This transition was a direct result of NDRs program underdelivering and left me in a worse financial position than when I started.

Company response to consumer: Closed with explanation