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CFPB: Company Should Pay $7M For Processing Illegal Fees For Debt-Relief Services

Charging up front for debt-relief services without any actual results for the customer is illegal. But despite that, says the Consumer Financial Protection Bureau, a payment processing company processed millions of dollars worth of illegal fees from consumers.

As a result, the CFPB says in its complaint today that it wants a federal district court to give the okay to force Global Client Solutions to stop processing those fees, and pay $6 million to consumers, along with a $1 million civil penalty.

The CFPB accuses Global Client Solutions of helping debt-settlement companies collect fees from consumers, before actually settling their debs with creditors. In some cases, the CFPB says, consumers paid hundreds and even thousands of illegal fees for services that didn’t ultimately pay off, or even worse, made things worse for them.

“Global Client Solutions made it possible for debt-settlement companies across the country to charge consumers illegal fees,” said CFPB Director Richard Cordray. “Consumers struggling to pay off a debt are among the most at risk and deserve better. We will continue to crack down on illegal debt-settlement firms and the companies that help these operations collect illegal fees from consumers.”

If the consent order goes into effect, Global Client Solutions would be banned from helping other companies collect such fees, and would be subject to monitoring by the CFPB, as well as submitting status reports on its compliance.

The defendants would also pay over $6 million in consumer relief in addition to paying a civil money penalty of $1 million.

CFPB Takes Action Against Global Client Solutions for Processing Illegal Debt-Settlement Fees [CFPB.gov]

http://consumerist.com/2014/08/25/cfpb-compan ... elief-services/

This company took $180 out of my account with my permission or authorization.  I have no bills in collections.  This company is a fraud!

Sorry they took the money WITHOUT my permission or authorization!!!  GCS is a fraud!

This company has taken money from me for three years and has not paid my credit cards one dime. I am being sued by Bank of America after Pay Global Client Solutions 655.00 per mo for 3 yrs. They have ruined my credit. I went into Credit Advocates Solution Law Firm. They are not lawyers. They are a rip off.

Withdrawn 12.00 USD on 8-29 and then 6.00 USD. They will not answer.

I saw this number display on my ACH bank account with a deposit of $0.02 and I was about to call the fraud department with my bank, but decided to do some research because the memo stated account verification. I knew I recently setup a debt consolidation account with National Debt Relief (NDR) and decided to do some research. After some searching using Google, come to find out that Global Client Services is a third party vendor that holds your funds on behalf of NDR, which you have FULL control of the funds until you say you want to pay your creditors. If you are working with NDR, see the following link: https://www.nationaldebtrelief.com/faqs/

I'm confused. You said you did research but didn't call your bank? Why wouldn't that have been the first step in your research?
And why would you come here, to a phone number look-up site, once you knew it was "valid"? At that point, you would have no reason to look up the number.
Your post seems very shill-like to me.

Yes, I believe I research that scam outfit as well.  Let me look.  No, but I will now, thanks for the heads up.

Interesting statement at the bottom of the first page.  Wonder why they put it in such small print?

*Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.

So, this means that if you have $10,000 in debt, the creditor will get $5,000, they will get $2,000, and you will only save $3,000.   Not a lot of savings, but something you could have negotiated yourself for free.  Not only that, but factor in the 1099-C that your creditor will send you and you will have to pay taxes on that $5,000.  Now the savings are even less.

P.S. There does not seem to be an outfit by the name of Global Client Services that is a third party vendor that holds funds.  So I guess your research was flawed as well?

This company just took $104. From my account I had no idea who they were and never spoke to anyone from this company before, I immediately called my bank to stop it  please do the same, then you can do your research, which I see I wasn't the only one.

This number is associated with an unauthorized debit from my checking account of over $500.  Would like to know what the deal is.

National Debt Relief gets 15%, once they settle a debt, which would be $1500, not $2000.  You pay DCS $9.95 a month for the checking, that part of which is not a good  deal.  Paying 55-65% of a debt faster, plus on lower interest is a very good deal though.

What Jessie answered is exactly correct and like me would respond on this site to reassure those who have or are going through NDR that this is the savings account that was set up to settle their specific debts. That is the reason a call to the bank would not be necessary, because really, who calls their bank about a number that pops up on their statement before looking into it!? Waste of time if you can figure it out on your own.

You have either misunderstood or have been misinformed. Do NOT stop paying your mortgage. They pay for credit card debt, NOT mortgages.

You can "figure it out on your own" by first calling your bank. Do you not know how much misinformation is on the Interne?! Your bank would have the correct information because they would have to know who they're giving your payments to.

Why are you replying to a post from 6 years ago? That person is never going to see your comments and they're 6 years too late anyway.
By the way, why are you even here? You apparently already know who this number belongs to since you're so defensive of it.

I received a phone call from the company, didn't let the call through but it worries me after reading the messages here.

They took $255.90 from my account without my knowledge. I reported it to my bank. Fraud deportment.