ComplaintsforDebtBlue

• Initial Complaint

  05/20/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I started the program but the company only held my funds. I changed my mind due to a communication error. They didnt provide any services for me.

  

  Business response

  05/23/2024

  We apologize for any inconvenience this may have caused. A supervisor from the Client Success Team contacted you to review the escrow and legal fees applied to the deposit of $251.83. A refund check for the remaining balance was mailed on 5/17/2024.
  While we are sorry to have lost you as a client, we wish you continued success on your journey to financial freedom.  Should you have any additional questions or concerns,please do not hesitate to reach out to our Client Success Team at ************* or ******************************. 

• Initial Complaint

  05/16/2024

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  DebtBlue will send you an offer through the mail offering certain programs for debt relief. When you call the number provided, you will be informed of different offers that do no reflect the received mail. When you inquire for additional information, they will request and require your full bank account information before sending you their terms and conditions. Incredibly weird and scam laden experience.

  

  Business response

  05/17/2024

  Thank you for bringing your concerns to our attention. We apologize for any frustration or inconvenience this situation has caused. DebtBlue will review the calls, and the Director of New Accounts will contact you to discuss your complaint further.

• Initial Complaint

  04/28/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  September 1 2023 I let Debt Blue start taking out about $252.00 a month for credit card debt solution , it was about $9000 credit card debt that they were suppose to help me with . This company told me to stop paying on my cards to let them go into none payment status so that they could negotiate a better deal . Well i calculated about for 8 months would add up to $2,015.68 They had had my money sitting in a trust that i could see , but it only had $859.62 in it and they had only negotiated one account , and had only made one payment , of $252.00 so I called them to find out where was all my money , they said that they charged me $39.00 a month for fees plus $9.99 of more fees plus 25 % of each negotiation . I told them i did not sign up for that and that i was told that i would be paying about $30 a month for fees and attorney protection . I immediately canceled the services and ask for my money back . They also told me they negotiated my bill from my mission lane account from $3000 to 1700 , with 4 payments of $251 . Well all my credit was in good standing before i started this program and the mission lane card only had a ***** limit So I loss money from that also , i waited 2 weeks they didnt give me my money then the said it was only $500 in the trust account , pls help me get my money from Debt Blue they are a scam company . I had all my banking statements to prove all a payments

  

  Business response

  05/01/2024

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced.
  During the enrollment process full details of the program including the performance fees, escrow account fees and legal plan fees were explained by the agent. These details were also reviewed during the verifications call and are addressed in the enrollment agreement (Please see the attached documentation). The breakdown of how the fees were distributed can be found in the client portal and the Client Success Team is more than willing to review this with you for clarification.
  In regard to the settled account mentioned in the complaint,a credit report was pulled on April 23, 2023 during the enrollment call. The agent reviewed the credit report with you which stated the current balance as $3039 (Please see the attached documentation). The performance fee is based on the current balance at the time of enrollment, not the credit limit. If you feel this is an error, please share any documentation with the Client Success Team for review.
  While we are sorry to have lost you as a client, we wish you continued success on your journey to financial freedom. Information about a refund will be shared once the cancellation audit is complete. Should you have any additional questions or concerns, please do not hesitate to reach out to our Client Success Team at ************ or ******************************.  

  Customer response

  05/01/2024

  I am rejecting this response because:   They kept sending new paperwork to sign. I believe it was a scam. They only made 1 payment  I expect 75percent of my money back. They made all my credit cards double. They negotiated fees added up to more then my card limits. Their actions ruined my credit it was good before they got involved., and charged me 25 % of 1 negotiated bill  this company ruined my credit and took all my money 

  

  Business response

  05/06/2024

  DebtBlue takes your concerns seriously and would like to address them with you. Our Client Success Team have made attempts to reach out to you to review your accounts.
  
  As stated in the enrollment process, DebtBlues contracted fee is 25% of the enrolled debt. At the time of enrollment, based on your credit report, the 10 accounts enrolled were $9,422. Please refer to page 4 of your enrollment agreement. At the time of enrollment, DebtBlue estimated that its service fees over the life of your program would equal $2,355.50 (25% of $9,422).
  
  ************ was the only account that was settled on your behalf, and this account was settled at 59% of the original balance. Therefore, the service fees earned by DebtBlue for this settlement were $759.75. DebtBlues fee is considered earned in full when the settlement is received, you agree to it, and a payment is made toward that settlement with the creditor. The payments to your creditor were scheduled to be paid from your escrow account, but at cancellation, the settlement was voided. DebtBlue's fee and effect the program can have on your credit were explained by the agent and verifications during enrollment. 
  
  You will receive the excess funds from your escrow account once the cancellation process is complete. Our Client Success team is more than willing to review how the funds were allocated and, if provided, we can review any documentation regarding your enrolled accounts.

  Customer response

  05/07/2024

  I am rejecting this response because:   I was not aware of all those fees / i spoke with a representative and she told me that it would be about $30 a month for fees  i was unaware of the 25%  she did not tell me about  that ,i would have never agreed  also they charged $49 a month that wasnt in the agreement then all my cards doubled from the original prices , and the negotiation prices are all over the original prices , my credit cards were all in good standing you put me in more debt , and charged me about 50% of all the money in total to do it , scammers 

  

  Business response

  05/23/2024

  CONFIDENTIAL INFORMATION:

  We have attempted to reach out to **************** to address her concerns on April 29, 2024, May 3, 2024, and May 7, 2024, but have not been able to get in touch with her. We have shared the verification call which shows where **************** agreed to the fees related to the program, the special purpose escrow account and the legal program. We also provided a visual from Ms. ******* credit report to address the concern about the amount the Mission Lane account was enrolled into the program. We believe the $49 a month she refers to in the most recent response is the $9.85 special purpose escrow account monthly fee and the legal fee of $39.95 which were separately contracted with companies outside of DebtBlue. We have offered to review the distribution of fees with **************** and to review any documentation she may have that shows the amount on the account she enrolled differs from the credit report. In our second response we also addressed Ms. ******* concern about the negotiated settlement when we stated, ************ was the only account that was settled on your behalf, and this account was settled at 59% of the original balance. Which is the $1792.16 offer that **************** referred to in her original complaint. Based on the credit report, the settlement is not more than the original amount enrolled.

  

  Business response

  05/24/2024

  Our Client Success Team is attempting to get in touch with you to address your concerns but has not yet succeeded in making contact. We will continue our efforts to connect with **************** to reach a resolution.

• Initial Complaint

  04/18/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  This service was extremely predatory, after I informed the sales rep that I was not interested in their services the same person convinced me he could save me interest on a high interest loan I have for my business with a lower interest rate and monthly payment. He explained in detail that they would simply buy the loan and refinance it to me so I would save money.What he failed to tell me: I would stop paying on the loan. The existing loan company will put me in collections, after one to two years Debt Blue would purchase the loan. In the meantime, as a minority small business owner, my credit would be destroyed. I missed a loan payment as I was instructed to do as they would be "buying it", It was never disclosed this would take years. My credit dropped 110 points and this is do to predatory loan practices by this company. It is a complete scam and I was pressured into this program. Now I am waiting for a response from the company and they are ignoring me.

  

  Business response

  04/19/2024

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced. DebtBlue does not purchase loans, we are a debt resolution company that negotiates with creditors to settle the debt for less than what consumer owes due to the clients hardship. We value your feedback and take it seriously. Our team will thoroughly review the call to address your concerns.  Please expect a call from the Client Success Manager within one to two business days. Should you have any questions or concerns before then, please do not hesitate to reach out to our Client Success Team at ************ or *******************************

• Initial Complaint

  03/09/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  Very disappointed with Debt blue and how they don't reach out to creditors until 6 months after making payments to them every other week, and now my credit report shows DELINQUENCY. I trusted this company with handling my debts and my credit is ruin.

  

  Business response

  03/12/2024

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced.
  The deposits made every other week go to a dedicated savings account. Once funds are built and the creditors are willing to negotiate, DebtBlue works with the creditors to settle the accounts for less than what you owe. With that being said, you have made great progress in less than a year with two settled debts at an average of 47% of the original debt amount.
  Under Settlement of Clients Debt on page 9 of the enrollment agreements states DebtBlue begins contacting Clients creditors as soon as DebtBlue determines that a good faith offer to settle a given debt, whether on a lump-sum or installment basis, may be made, with such determinations dependent upon such factors as the creditors settlement policies, the rate of account accretion, the size of each debt and how close a debt may be to charge-off. Some creditors prefer that they not be contacted until sufficient funds are accumulated in ************************* Account to allow a negotiated resolution within their historic norms. The creditors will not settle accounts that are current. That is why during the enrollment call the verifications agent reviewed the decision to not pay your creditors directly and that DebtBlue does not make monthly payments to the creditors.DebtBlue is working with the creditors to get them paid in one lump sum or a payment arrangement.
  Under Effects of Participating in a Debt Negotiation Program on page 11 of the enrollment agreement states Failure to make required minimum payments to creditors may be breaking the terms of agreements with creditors, may lead creditors to increase finance charges and pursue litigation, may be reported to consumer reporting agencies, and may have an adverse effect on clients credit report and credit score
  DebtBlue would like to work with you to complete the settlements you have in place. Our Client Success team will reach out to discuss how you would like to handle the rest of your enrolled debt.

  Customer response

  03/13/2024

  I have reviewed the business response and accept this resolution. I would also like for my monthly draft to be lower.

• Initial Complaint

  03/04/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I decide to sign up with DEBTBLUE in Jan 2023 . Paying them$1211.69 to get my debt consolidated over a 48 month period . Today after 13 months of paying I called and went thru the current account settled which are 5 and what are their balances and what have been paid so far to the companies . Of the $15751.91 I have paid so far only $2411.03 have been paid out the creditors , some of the balances are unchanged and some with minimal changes . This is a crime .

  

  Business response

  03/07/2024

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced. In your complaint the claimant expressed dissatisfaction with how the funds have been dispersed and are requesting a refund. DebtBlues goal is to help clients get out of debt, but the process does take time which is why the claimants program length is 48 months. We would like the opportunity to review the allocated funds with the claimant to clarify any confusion. The settlement documents are in the claimants client portal and the fees that were explained in the verifications call, are also outlined in the client enrollment agreement for review. Our client success supervisors are attempting to reach out to you to resolve this matter.

• Initial Complaint

  02/19/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I have made multi calls to DebtBlu to get a pay off amount for my two settlements. Each time i call, i speak with someone new and it seems like the task is not moving at all.I really need a manager to call me back or email me the total payoff amount for my to settlements and we can move on. I had no idea it would be this hard to get two dollar amounts.

  

  Business response

  02/20/2024

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced.In your complaint you expressed dissatisfaction over the wait time for receiving an estimated pay off amount for your settlements and requested a call from the manager. In order to give an accurate pay off amount, DebtBlue must contact the creditor to confirm the verified balance of the account. This process can take time depending on the creditor and their response time. DebtBlues goal is to give you the information as soon as we receive it.
  Our Client Success Team reached out today by phone and email to discuss the pay off amount.Our Client Success Manager called to review the estimated pay off amounts for the two settlements and give more information about how the payoff will be affected by your recent deposit but was unable to reach you. We will have the manager call again tomorrow so that we can get this resolved as soon as possible. 

• Initial Complaint

  02/15/2024

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  I was poorly informed about the process of how DebtBlue charges its clients and when those charges occur. They have made claims to me that their goal is to help get me out of debt, but when it came down to a situation in which I could not make a payment for the month, they offered no resolution, except for cancellation of the program. For the debts I currently had in settlement, they refused to provide information to me in order to allow me to continue those settlements directly, which would have been more affordable and on a better timing schedule for me at this time.

  

  Business response

  02/16/2024

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced. In your complaint you expressed dissatisfaction over the Earned Performance Fee charged when a settlement is reached.  You are requesting a refund and details about the settled debt.
  
  Fee assessment by DebtBlue is defined in the Client Enrollment Agreement on page 11, which states: "DebtBlue will not charge any fee for settlements rendered until an enrolled debt is resolved, the Client approves the terms of the settlement offer, and payment has been made towards the negotiated balance." As such, once the initial payment to the claimant's creditor was made, and the earned performance fee was collected based on the terms of the signed Enrollment Agreement which is a defined percentage of the balance of the debt at the time of enrollment. The claimant confirmed understanding of the fees in the verifications call during enrollment.

  We regret that the claimant was unable to maintain deposits to their dedicated savings account to continue the settlement agreements however our client success team worked with the claimant on July 31, 2023, August 18,2023, and September 14, *********************************** order to avoid missing a payment that could void the settlements in progress. DebtBlue fulfilled its commitment to the claimant by successfully negotiating this debt and rightfully collected Earned Performance Fees at that time. Please refer to the documents section of the client portal to access the client enrollment agreement, and settlement letters.

  While we are sorry to have lost you as a client, we wish you continued success on your journey to financial freedom.  Should you have any additional questions or concerns, please do not hesitate to reach out to our Client Success Team at ************ or ******************************. 

  Customer response

  02/16/2024

  I am rejecting this response because:   It was stated to me that as a result of me leaving the program, the settlements that I had in place would be terminated ON BOTH ENDS. This means I was not in control of the settlements that I had already paid a fee for. This was NOT explained in the beginning process. I have paid for that service and those settlements should not have been terminated. I should have been provided the information to continue those settlements. This is an extremely deceptive practice that is not designed for helping people get out of debt, as your company claims.

  

  Business response

  02/19/2024

  We sincerely apologize for the frustration this process has caused. DebtBlues goal is to help clients successfully resolve their debt and provide a pathway to financial freedom. DebtBlue and the client must work together to make this happen.
  To address the concerns from your response, when it comes to the service the DebtBlue provides, on page 11 of the Client Enrollment Agreement: DebtBlues fee is considered earned in full when the settlement is reached, you agree to it, and a payment is made toward that settlement with the creditor.
  At that point, the continued success of the program is dependent upon the client to continue his or her regular deposits into the dedicated saving account so that on time settlement payments can be made to the creditor. This is explained on page 9 of the Client Enrollment Agreement:Client understands that for settlements that are already in place it is Clients responsibility to ensure that sufficient funds are in ************************* Account or else there may be a breach of the settlement agreement.
  In addition, the Disbursement of Funds section of the Client Enrollment Agreement states that: Each month the ************************* Account will debit the payment required under this contract for the agreed upon settlements with creditors, and DebtBlue fees. Client shall be solely responsible for all scheduled fees outlined by ************************* Account. If a client cancels his or her program, the dedicated savings account is closed which impacts the settlement agreement causing the settlement to be voided. Please refer to the contract signed with the dedicated savings account third party for details related to the termination of agreement.
  DebtBlues goal is to be transparent with their clients which is why the settlement letters that outline the scheduled settlement payments are uploaded to your client portal in the document library. If you would like help finding or accessing these, please feel free to reach out our Client Success Team at ************ or ******************************
  We take your complaint and concerns very seriously and have requested a review of your account. Our Client Success Manager will reach out with any adjustments to the fees associated with your account with in the next 24 to 72 hours.

  Customer response

  02/22/2024

  I am rejecting this response because:   Again; despite your stated goal to be transparent, this was NOT explained to me during enrollment into the program. Contract or not, I paid for a service that was ultimately not delivered. Furthermore, in order to justify collecting a large additional fee on new settlement accounts, you very quickly made small $10 payments initially to each of those newly settled accounts. I am also charged per payment made and this is an unethical practice; you are not abiding by your fiduciary responsibility to my account or by your claimed attempt to assist me in becoming debt free. I have submitted this complaint to the **** as well and unless I am fully refunded of any fees paid to Debt Blue, I will not be marking this as resolved.

  

  Business response

  04/25/2024

  Following our response on February 19, 2024,we contacted the client on February 23, 2024 to discuss the audit of the clients account and gave a partial refund. At this time, DebtBlue considers this complaint closed.

• Initial Complaint

  01/25/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I graduated from this program and paid all my debt back in 2021 and it is now January **** and they still cannot seem to figure out where my money went and it has been a depressing 3 years of back and forth phone calls of representatives making it seem like its not a big deal and brushing it off (obviously when its been 3 years). This is absolutely unacceptable. I have been serving in the military for 9 years and this company has been the worst nightmare compared to anything else I have been through. I am not able to apply for my benefits that I am eligible for, I can't apply for my Veterans Affairs loan for a house for my family, and I cant apply for a joint bank account with my spouse because I have this record in collections that debt blue is refusing to pay off. This business has been very detrimental to my mental health, and has affected so many aspect of my life in such a negative way. I am trying my best to not file for a lawsuit because I am already so stressed for being stuck with them and I have been currently seeking help from my base counselor and legal office just to figure out what we can do to evade additional problems on top of what they already caused for me. Putting a client through a hardship for 3 years is unacceptable and I am still being told over the phone to call back next week for the hundredth time for an update which will probably keep going. All I want is to have this paid off and I dont understand why its so hard for debt blue to just accomplish that. I have attached supporting documents regarding this.

  

  Business response

  01/27/2024

  Thank you for the opportunity to address your concerns. Our sincere apologies for any frustration and inconvenience that *** have arisen during the process. DebtBlue negotiated the debt, and payment was sent to your creditor. A settlement letter has been uploaded to your account and our Client Success Manager reached out Friday to give an update. We appreciate your patience and should you have any additional questions, please reach out to our Client Success Team at ************* or *******************************

• Initial Complaint

  11/30/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I have been with Debt Blue since 2021. I have taken back a few debts that were originally filed because of many other problems I would occur putting them in debt consolidation. I was served by one of my creditors with a debt that was under my debts with debt blue. I had to fax them the legal paperwork so they can send to the legal team . This was a debt that was already included in my original monthly note. I was told by the lawyer to add ****** More dollars or pay a lump sum of ***** which will really put me in a bad situation. The lawyer was very rude and had no sympathy did not try to help me resolve this I have never felt back into a corner. I have called debt blue several times even left several messages to get this resolved never received a call back. Why do I feel like Im working harder trying to resolve my own debt that they are getting monthly payments for. I just called the lawyer and explain no one would return my call to be told you are calling the wrong person. I am very frustrated with DEBT BLUE. Im suppose to feel relieved but Im more stressed then before acquiring them .

  

  Business response

  12/08/2023

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced. ***************************** is incorporated into the DebtBlue program and serves as legal representation for the client. When a client is served, DebtBlue and **** work together to settle the clients account as quickly as possible, which can include the need for a boost. Thank you for your feedback, we will reassess our communication with **** to best service and communicate effectively with our clients.

  Customer response

  12/08/2023

  I am rejecting this response because:   To the day I had to call Debt Blue never received a call and I refuse to be talk down to by an unsympathetic attorney 

  

  Business response

  12/13/2023

  DebtBlue reached out to the client directly to address their concerns. We are committed to keeping the client informed about the progress on their account and will provide updates. The attorney contacted the client to acknowledge their concerns and collaborate on a plan of action as they continue to work together. We are dedicated to improving communication with the attorney to ensure support for our clients. Thank you for the opportunity to earn your trust back.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩