It is companies like these in which I place some of the blame for our current economic crisis. They tell you they can save you 60% and pay off all of your balances quicker. Just stop paying your bills and send the money to them and you are good to go. Even if this scheme were to work out as they say it will am I the only one who thinks it is wrong?

You go out and buy all the luxury items you can not afford in the first place; then go to one of these companies so you do not have to pay for it. It is almost outright stealing in my opinion. Everyone takes this "evil" banks approach to commerce forgetting that they are not the bad guys, its companies like Credit Solutions.

However, I can not blame most of their clients. It sounds like a great deal to most. I can not expect everyone to understand how the whole finance world works. These people were lied to and justice needs to be served.  

AUSTIN – Texas Attorney General Greg Abbott today charged Credit Solutions of America, Inc. (CSA) with conducting an unlawful scheme that defrauded Texans with financial problems. According to the state’s enforcement action, CSA purported to offer a debt settlement service that would eliminate its customers’ unsecured debts – such as credit card accounts – in as little as three years.

Despite CSA’s promises, a state investigation revealed that the defendant failed to negotiate settlements with creditors for most accounts entered into its program. Further, when CSA did negotiate settlements with creditors, its clients did not always receive the 60 percent reduction they were promised. The state’s enforcement action seeks an injunction against CSA that will prevent the defendant from continuing to unlawfully promise services which it does not deliver.

According to the state’s enforcement action, CSA not only charged its customers for services that were not delivered, but because its debt settlement program requires customers to stop making payments to their creditors, many CSA customers could face unforeseen late fees, additional interest, increased collections attempts, and even lawsuits by their creditors.

The Office of the Attorney General has received 140 complaints against CSA in the past two years. Additionally, the Better Business Bureau, which gave CSA a “failing” rating, received over 1,600 complaints against the company in the past 36 months.

Debtors should carefully research a debt reduction firm before entering into a contract or signing any documents. Options available to struggling debtors include credit counseling, debt management, debt settlement or bankruptcy.

Texans who need additional information, believe they have been harmed by a debt-settlement company’s unlawful conduct or wish to file a complaint may contact the OAG at (800) 252-8011 or do so online at www.texasattorneygeneral.gov.

Read the full complaint filed in Travis County Texas.

Help the Texas attorney general stop Credit Solutions and other companies who profit from defrauding and lying to Americans.

If you currently reside in Texas and are a current or former client of Credit Solutions I urge you to contact the Attorney General of Texas to help this cause move forward. If you are not a Texan please contact your states Attorney General and let them know about your situation.

UPDATE:
Credit Solutions has released a statement:

"We absolutely look forward to coming to an acceptable resolution and working with Greg Abbott and his team," said Heather Carmichael, vice president of legislative affairs at Credit Solutions. "We're 110 percent committed to customer satisfaction."

The company also said it "works diligently to resolve all complaints with the Better Business Bureau, and to our knowledge any BBB complaints referred to by the attorney general of Texas have been appropriately addressed."

That's all nice an dandy but I will wait and see what really happens. If all of the complaints referred to the attorney general of Texas were properly addressed a lawsuit would not have been filed. In an earlier statement released Credit Solutions claimed not to be aware of the complaints filed with the attorney general. I doubt the attorney general would just let complaints flow in and never advise the company. Greg Abbott obvioulsly feels that they are doing nothing for the client, and are making no steps to start actually helping their clients.

If you want to learn more about Credit Solutions, also known as CSA or Credit Solutions of America you can visit them on their website. Their web address is www.creditsolutions.com. Anyone seeking a remedy to their debt needs to fully understand what they are getting themselves into. Do not just take the word of a salesperson trying to sell their program. Do your due dilligence and make sure you are 100% aware of the risks.