Consumer complaint received 2025-09-21 00:00:00
Product: Debt or credit management — Debt settlement
Issue: Charged upfront or unexpected fees — 
Company: Citizens Debt relief LLC
State: NM

Complaint narrative:
Citizens Debt Relief ( CDR ) improperly withdrew {$8600.00} in fees from my XXXX Account while only {$26.00} in token payments were ever made to creditors. My signed Agreement with CDR ( Paragraph 9 ) states that fees are only earned when ( 1 ) a settlement is negotiated, ( 2 ) I approve it, and ( XXXX ) the first creditor payment is made. None of these conditions were met. 

On XX/XX/XXXX, CDR told me in writing that no funds had left my account and that service fees would not be collected until accounts entered settlement. However, every XXXX monthly ledger shows that Program Related Fees were deducted despite no settlements. For example, as of my XXXX ledger dated XX/XX/XXXX, {$8400.00} in fees had already been taken while only {$26.00} in token payments were ever sent to creditors. On XX/XX/XXXX, XXXX ( the payment processor ) confirmed to me in writing that all such fees had already been disbursed to CDR. This directly contradicts CDRs prior statement in XXXX. 

In XXXX, while logging into my XXXX XXXX account, I repeatedly saw direct settlement offers in the 5065 % range. I saved a screenshot of a 50 % direct settlement offer ( on one of my XXXX XXXX accounts ) and a later offer showing 15 % on another. This demonstrates that XXXX XXXX was actively making direct settlement offers, yet CDR never responded to my inquiry about them and continued collecting fees. 

Separately, my XX/XX/XXXX CDR statement falsely reported that XXXX XXXX was Settlement in Progress and claimed 50 % of my accounts were settled. In reality, I never approved any settlement with XXXX XXXX, and no payments were made. 

At another point, XXXX ( another account that was enrolled with CDR ) offered me a 75 % settlement. CDR advised me not to accept it, but I went forward and accepted it anyway. This demonstrates that CDRs guidance was not in my best interest. 

On XX/XX/XXXX, I forwarded CDR a collection letter from a law firm representing XXXX XXXX. CDR did not respond or assist me, leaving me to handle collection activity on my own while they continued withdrawing fees from my account. 

By the end of XXXX, the total fees withdrawn from my XXXX  account had increased to {$8600.00} ( as reflected in my XXXX  online portal and cited in my XX/XX/XXXX Error Resolution Request ). 

On XX/XX/XXXX and XX/XX/XXXX, I formally requested a refund of {$8600.00} in fees that were collected in violation of my Agreement. I also followed up later the same day after XXXX confirmed the fees had already been disbursed to CDR. CDR has not processed the refund or provided any response. Under Paragraph 12 of my Agreement, I was entitled to request a refund of all unexpended funds at termination. I submitted these written refund requests, but CDR failed to process them. XXXX later refunded only the small unspent balance of {$630.00}, but CDR has not returned the {$8600.00} in Program Provider Fees that were improperly collected. 

On XX/XX/XXXX, I submitted a formal Error Resolution Request under Regulation E for two errors : ( 1 ) the {$8600.00} in fees taken before any approved settlements, and ( 2 ) the false XX/XX/XXXX XXXX statement reporting 50 % of accounts settled and showing my XXXX  XXXX account ( {$29000.00} ) as Settlement in Progress, though I never approved any settlement as required by my Agreement. CDR did not resolve these errors, issue a provisional credit, or provide a written explanation by XX/XX/XXXX ( the 10-business-day deadline ). This is a violation of federal law. 

On multiple occasions, including XX/XX/XXXX and XX/XX/XXXX, CDR replied only with please call us emails instead of addressing my documented refund requests and Error Resolution Request in writing. This avoided creating a record and left my concerns unresolved. 

As a result, I was left with no funds available in my XXXX account to resolve my debts, missed the opportunity to accept direct creditor settlements, and was exposed to legal activity that could have been avoided, despite paying over {$8600.00} into the program. 

When I enrolled in XX/XX/XXXX, I was told that settlements were typically made within 46 months. In reality, I remained in the program for over 17 months before I ever saw a single proposed settlement ( a XXXX  XXXX offer in XX/XX/XXXX, which I never approved ). No valid settlements were ever completed. I was also told that XXXX, the person who signed me up, would remain my point of contact, but I never heard from him again despite attempts to reach him.

Company response to consumer: Closed with explanation