ComplaintsforDebtBlue

• 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.

• Initial Complaint

  11/28/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Debt blue has lied to me every step of the way. It is a total rip off!1) I was told debt blue would make monthly payments to my creditors. Not true 2) I was told by debt blue my accounts would not show delinquent on my credit report. Not true 3) I am paying for an attorney that now says they don't represent me. I asked for my money to be refunded, but told they would not refund the money I now want a total refund of all monies paid to them. They royalty screwed me over.

  

  Business response

  12/05/2023

  Thank you for the opportunity to address your concerns, we apologize for any frustration or inconvenience you have?experienced. 
  Since DebtBlue has been servicing the claimant's file, there have been four calls handled by our Client Success team in which the full details of the program were re-explained including the repercussions of accounts transitioning to a delinquent status along with the utilization of the escrow account for settling obligations related to the settled account. We took great care to ensure through written and oral disclosures at the time of enrollment and reminded the client of this during one of the Client Success calls. If the client is in need of more clarification, please call our Client Success team. It is our goal to remedy any confusion as quickly as possible. 
  As mentioned in the Client Success call on 11/13/2023, the client pays a monthly service for attorney representation in the event a summons is issued.  Additionally, a How to Deal with Creditors and Debt Collectors toolkit was emailed to the client at the beginning of their program. The client requested a cancellation of the program and was notified a check would be sent. The client declined and decided to stay with the program. The manager of Client Success will reach out for clarification in this matter to make sure the client still wants to remain in our program. 
  It is our objective to ensure that all clients we service are provided with accurate account information.  We will make additional attempts until we are able to successfully reach our client to discuss their account in full detail, answer any questions they may have, and ensure they have a full understanding of the benefits of the program. We look forward to the opportunity to discuss this matter fully and will earnestly re-state our commitment to servicing and negotiating their remaining unsecured debt over the prescribed length of their program.  
  We look forward to speaking with you soon! 

  Customer response

  12/05/2023

  I am rejecting this response because:   

  Debt blue is very dishonest. I did want to cancel my account, but do not want a check. I paid the fees with a credit card. I do not trust debt blue to write a check that will clear the bank. With all the dishonesty how can I trust them?

  They also said they would refund the attorney fees, since they are not representing me. No refund has been received.

  I will continue to make the payments and hope debt blue doesn't steal my money. I am not happy with the service I am being provided though.

   

  

  Business response

  12/07/2023

  Attached is a transcript of the verifications call that took place with *********************** after speaking with the sales agent. The verifications agent is speaker 1 and *********************** is speaker 2. The first highlighted section on page 3 indicates where the agent explains that we will do not directly make monthly payments the creditors. The second highlighted section shares a description of the services provided by the legal group.

  

  Business response

  12/07/2023

  Thank you for the opportunity to address your concerns, we apologize for any frustration or inconvenience you have experienced. DebtBlue would like to discuss this matter directly to resolve the concerns you have indicated here and provide an alternative option for a refund if you desire to cancel. Please expect to be contacted within 24 hours to discuss this matter in further detail.

  Customer response

  12/07/2023

  I am rejecting this response because:   

  I look forward to the call to resolve this matter.

  Customer response

  12/12/2023

  I am rejecting this response because:   

  I spoke to a rep on Thursday Dec 7. She said she'd contact me no later than Monday December 11. Today is the 12 of December. I have not had any other contact with Debt blue. Debt blue is doing nothing but playing games

  

  Business response

  01/17/2024

  We apologize that the response time took longer than usual. Our Client Success Manager was in the process of obtaining approval to adhere to the updated eligibility requirement, which had recently transitioned from 7 months to 12 months.  Sky **************** was also requested to reach out on December 18, 2023 to explain how the fast-track program works and review the eligibility requirements. The client committed to a program duration of 36 months, reflecting the necessary timeframe for negotiating and effectively resolving the enrolled accounts. Having enrolled in the program five months ago, we are currently in negotiations for two of the clients accounts, with potential settlements in sight. Additionally, we have initiated communication with creditors for two more accounts out of the clients total of six. This is a great start in five months. We are excited that you have opted to stay in the program.  Should you have any additional questions please reach out to our Client Success Team at ************* or *******************************

• Initial Complaint

  10/20/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I had $15000 outstanding on my credit cards. Even though my debt was high, I was making payments every month. I started to look into debt conciliation. That's what I thought debt blue was. I was told that they were. Come to find out, they do not get you loans. They act as a middle man with your creators, to get debt paid. Very deceptive practices. I wish I never called them

  

  Business response

  10/20/2023

  Thank you for the opportunity to address your concerns, we apologize for any frustration or inconvenience you have experienced.

  Since DebtBlue has been servicing the claimant's file, there have been a few calls handled by our Client Success team in which the full details of the program have been re-explained for clarity. We take great care to ensure through written and oral disclosures at the time of enrollment that clients are enrolling in a debt resolution program and apologize that confusion remains. It is our goal to remedy that as quickly as possible.

  It is our objective to ensure that all clients we service are provided with accurate account information and will make attempts until we are able to successfully reach our client to discuss their account in full detail, answer any questions they may have, and ensure they have a full understanding of the benefits of the program. We look forward to the opportunity to discuss this matter fully, and will earnestly re-state our commitment to servicing and negotiating their remaining unsecured debt over the prescribed length of their program. We look forward to speaking with you soon!

  
  

  Customer response

  10/20/2023

  I have reviewed the business response and accept this resolution. 

• Initial Complaint

  09/04/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I shopped many Debt Consolidation companies and I went with Debt Blue in Feb. 2023 because one of their advantages was a 'bridge' loan from Skybridge Lending (they partner together for this) that happens at month 7, if you have perfect payment history with Debt Blue, so that the consumer can take a loan out for the remaining settlement amount balance so that you can rebuild your credit because it plummets with the debt consolidation process. I was provided a chart from Debt Blue on how your credit goes down for the first 6 months and starts to go back up around month 7 because of this loan that they offer through the partnership. So I am now approaching 7 months of perfect pay history, so I called Skybridge to find out the details of the loan, and Skybridge told me that they changed their lending limits sometime in April 2023 (after I was enrolled with Debt Blue) and that they lowered the limits and now I don't qualify. I called Debt Blue 3 different times, asking for them to intervene with Skybridge about getting a loan for me, and although they admit that they did sell the loan feature to me, they 'can't help that Skybridge changed their limits and didn't tell them." That's not my problem. If they have a partnership and they offer a Skybridge loan as part of their product, they have to honor it. But they are doing nothing about it and I am left with horrible credit and no way out for years. THIS IS ILLEGAL AND IS FALSE ADVERTISING. They admit that they are 'sorry' but they can't do anything. This is unacceptable and is literally ruining my life. I can't get a car loan and my car and house insurance premiums skyrocketed and will not come down because I can't get the loan that I was promised as part of their product.

  

  Business response

  09/12/2023

  DebtBlue very much appreciates that our client has made themselves available to address their concerns with our Management Team, and to discuss various opportunities for account resolution in the future. We look forward to our client's continued progress in our program and remain committed to resolving their debt as quickly as possible!

• Initial Complaint

  08/14/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Good morning, Im contacting about Debt Blue. My aunt has been with them since November 2021. She has been consistently making payments ever since then until we gave them a sum they told us would be enough for the rest of the account in the amount of **** back in July. Since then they have been letting the money sit there and small fees being taken out here and there. Ive called multiple times regarding the issue and they have put in requests but they never even follow up when they say they will. I asked to speak to a supervisor and theres always no supervisors available to help. Please can you do anything to help us please ? We will also be contacting the bank to stop future payments.

  

  Business response

  08/14/2023

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced.
  Based on our records, our Quality Control team is working with your aunt's Veritas Attorney and collections attorneys ********************************* to discuss, verify, and resolve the final payoff of the Discover account. We regret that this process is taking additional time than normal, however we are working diligently with both parties to obtain the information required to finalize this settlement arrangement. Our notes indicate that you spoke with a Client Success representative today, however if you are in need of additional contact by a supervisor we are happy to accommodate that request!

  We hope to finalize this matter expeditiously, and guarantee that we will contact you once this transaction has been finalized. As always, please don't hesitate to contact our ************************* at ************!

• Initial Complaint

  07/12/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  7/29/2022. I paid ********* $499.00 for six months and they did nothing for me.

  

  Business response

  07/12/2023

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced.
  In review of your account, we show the successful negotiation and resolution of a debt on 9/20/2022 which resulted in a 50% reduction of the debt; a savings of $680.76. On 11/10/2022, the client approved a settlement offer on a second account which was a 48% reduction of debt scheduled to be paid to the creditor over a term of 18 months. Payments were made toward this settlement agreement between November 2022 and March 2023, however, settlement installments could not continue after April 2023 as a result of the client unauthorizing scheduled program deposits with their bank. As a result of lack of funds, this settlement subsequently failed in April 2023. Consistent savings deposits are required for settlements to continue, for new settlements to be negotiated, and for successful completion of the debt resolution program. Additionally resulting from the successful negotiation and funding of these two settlements, per the *** Telemarketing Sales Rule, DebtBlue has fully earned the performance fees related to both arrangements. Despite the current non-drafting issues, we are confident that successful completion of the debt resolution program IS possible.

  To that end, DebtBlue would very much like to discuss this matter directly to resolve the significant concerns you have indicated here. Please expect to be contacted within 24 hours to discuss this matter in further detail.

   

• Initial Complaint

  06/23/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  Received a letter from DebtBlue, AT MY JOB! I have never contacted this company, my credit is frozen to make sure no one can open anything. When I called them to find out how they got my information, especially my job information, they wouldn't discuss anything without giving them my phone number. Refused to give them that info and they hung up on me. I called back and told them I wanted removed from their system but wouldn't do anything, again without giving personal information.

  

  Business response

  06/23/2023

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced.
  Regrettably, we were not successful in accurately identifying a file which matched any of the personal information accompanying this complaint, however we want to take all necessary steps to ensure that you are not contacted against your wishes in the future. We do have a few options to ensure you are removed from any of our future marketing campaigns:

  1) Opt-Out instructions are located on the bottom of the document you received with a weblink you may utilize to prevent contact in the future.

  2) You may provide a copy of the documentation you received to: ****************************** and place "ATTN: COMPLIANCE DEPARTMENT" in the subject line. That correspondence will be forwarded to the proper department who will immediately take the necessary steps to prevent contact in the future.

  3) You may contact the phone number on the documentation you received and request to not be contacted in the future. The best way for us to identify your file will be a reference number which is listed on the document, and this will prevent you from providing any personally identifying information.

  We sincerely apologize that you received this document at your place of employment; it is never the intention of DebtBlue to contact a consumer by mail anywhere other than their residence, and we hope to remedy this matter as quickly as possible. 

   

  

  Business response

  06/26/2023

  DebtBlue would like to amend its previous response; we can confirm that the claimant has been identified in our system and has been removed from all future marketing campaigns. 

  Customer response

  07/06/2023

  I have reviewed the business response and accept this resolution. 

• Initial Complaint

  05/31/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I entered into a contract with DebtBlue in June of 2022 to negotiate a settlement with my one credit card company that had a balance of $12,263. I have made 10 consecutive payments of $298.60, totaling out to $2,986. On 4/28/2023 I authorized DebtBlue to draft a lump sum payment of $8,900, which now brings my total out of pocket to $11,886. On 5/4/2023, DebtBlue notified me that a settlement offer had been made for $11,088. They are still wanting to draft my bank account for $298.60 and my current account balance in my DebtBlue portal is $7,780.81. I was told by a representative YESTERDAY that DebtBlue takes a 25% fee out for their efforts during negotiations. I was not told that during my enrollment into this plan and I have asked for the recording of my onboarding phone conversation. EVEN, if they did take 25%, is it 25% of the settlement amount or 25% of what Ive already paid in?!?! Someone help. This is just madness.

  

  Business response

  06/09/2023

  Thank you for the opportunity to address your concerns, we apologize for the frustration and inconvenience you have experienced. DebtBlue has provided a copy of the client enrollment agreement to our client to provide additional insight to how fees are assessed, and a supervisor has reached out by phone and email to discuss their individual file in further depth and will continue to contact the claimant daily until contact is made to resolve this concern. 
  
  

*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. ↩