Capital Debt Settlement, based in Fresno, CA, seems to be an enigma debt consolidation company. On the one hand, they seem to have some people who love them. On the other, they’ve been accused of some bad practices, mainly when people have decided they wanted to opt out of participation.

First, the details. The company has been around since 2003, but wasn’t incorporated until 2006. The core of their business is debt settlement, which is what most of these companies actually do rather than true debt consolidation. In March 2009, they hooked up with a law firm, Allegro Law, to handle what they call “debt management”, which in essence means this company will work with Capital Debt Settlement and their clients by trying to get lower interest rates on their credit cards, something most of these companies won’t do, but also something most people can do on their own by just calling the credit card companies themselves.

Capital Debt Settlement has many certifications also. They’re a member of The Association of Settlement Companies (TASC). They’re also a member of the United States Chamber of Commerce and D&B, who says they’re the world’s leading source of commercial information and insight on businesses. They’re also a member of the International Association of Professional Debt Arbitrators, in April moving up to “Silver” status through its certification programs.

They charge the industry standard of 15% to set up your account, and have a $30 monthly fee. For once, you don’t get the scare tactic against other types of debt consolidation and protection on its main page, but they do have a page with the same standard slams on other types of debt consolidation. However, they haven’t had any complaints against them as reported by the Better Business Bureau.

So what’s the controversy? It seems that, though there haven’t been any complaints against them through the BBB, there are plenty of complaints online about them. Each complaint is about the same thing, which is people who decided they didn’t want to follow through with the program and wanted out. It seems that Capital Debt Settlement still goes into their bank account and takes some sum of money, which most people have reported as $75. Capital Debt Settlement representatives say it’s a cancellation fee, but those complaining have said it’s not in the contract. Without seeing a contract we can’t confirm that, but those who swear by the company say there is a clause in the contract stating this as a fact.

Either way, it seems that Capital Debt Settlement might be a company to talk to if you need some help in getting your bills together and getting some relief from your debt.

They’ve been in business since 2005, which makes them slightly older than some other debt relief companies. They charge the standard 15% set up fee, with no monthly or settlement fees. They’re up front in telling you that they won’t be contacting your creditors monthly, and that they won’t be able to stop creditor calls, which is what many people complain about with other companies. They also let you know up front that if you cancel, there will be no refunding of fees.

Franklin Debt Relief did something different in 2007 than we’ve seen from any other company of its type. It actually sent out a press release against credit card companies, outing their practices and saying they pushed consumers deeper into debt. It seems to have been prophetic, based on what’s happening today with credit cards raising their rates at a moment’s notice because of the bad economy. One of the quotes that their spokesman at the time made was:

“It is only when a person is in financial trouble that they become aware of the charges that they have to pay. At that point they are too far involved and it becomes impossible for them to avoid these additional charges. At Franklin Debt Relief we believe that these terms should have to be made more prominent to consumers and also that legislation should be put in place to cap these charges.”

Franklin Debt Relief seems to be a company that’s doing the right thing by its customers, mainly by letting them know up front what they may be in for. It’s a step in the right direction.

There are a lot of sham debt consolidation companies out there. It shouldn’t be as hard as it is to discern the good ones from the bad. Unfortunately, it seems to be, as many people not only lose money, but end up with bad credit at the same time.

American Debt Resolutions is one of those companies. Based in Texas, they’re one of only four debt consolidation companies in the state registered with The Association of Settlement Companies (TASC). Companies that are registered with TASC have to pass certain standards to be allowed in as members, and are almost the certification arm of debt collection organizations. However, there are some companies that end up with negative ratings that belong to TASC, so it’s not a slam dunk.

Although Better Business Bureau rankings can sometimes be subjective and not the overall standard for how competent businesses are, it’s nice to note that the BBB has never had a negative complaint against them. We couldn’t find anywhere on line where there have been complaints about them either, which is a great sign.

One thing that helps you to realize this is a legitimate company is that they encourage you to visit them in their offices, and to call them whenever you have questions about your account. They’re even known to pick up the phone, which sounds strange to say, but with many debt consolidation companies, once you’re on a plan with them they’re sometimes hard to reach.

There are some other upsides with American Debt Resolutions as well. They charge less than average for set up fees, which is a percentage of what companies charge you based on your outstanding debt. Their fee is only 13.5%, whereas the average is 15%. Also, there’s no monthly fee, whereas other companies will have fees that can range between $25 and $100 a month. So, they not only work with you in resolving your debt, but they save you some money also.

Although American Debt Resolutions touts the same party line as many other debt consolidation companies when it comes to building themselves up while tearing down other methods, one thing we noticed is that they also put out articles on the internet that describe other methods of debt protection, including Consumer Credit Counseling, and those articles are non-biased and accurate representations of exactly what the other methods might do for you. That was a nice change of pace, even if the articles still have a slight slant that builds them up in a less direct way.

American Debt Resolutions, which has been around since 2006, seems to be a reputable company. They’re at least worth a look if you’re having credit problems in Texas.

Trident Debt Solutions

Trident Debt Solutions is a debt settlement company based in Colorado, but services clients in every state in the continental U.S. except for Alaska.  They’re also one of the few debt consolidation companies owned by a lawyer.  They’re also members of the Boulder Chamber of Commerce and the Better Business Bureau, from whom they’ve received an A rating, which is their highest.

Trident Debt Solutions has been around a very long time compared to most companies in the debt consolidation business, since 1990.  It’s amazing then that this company has no negative reports found across the internet, which probably helps to explain Trident’s BBB rating.  They state on their website that if they can’t save consumers at least 30% that they won’t charge for their services at all; that’s an interesting guarantee that no other debt consolidation company offers.

This company is also unique in that they have articles on their site, articles in article directories, and videos on YouTube that talk about the different aspects of debt management.  There are a lot of reviews on them and everything has been positive.  Their website has a FAQ (frequently asked questions) where one can find as much information as they need on different financial questions and solutions.  They’re not afraid to share information that may lead customers in a different direction.  That shows they’re a quality company.

They offer a free debt estimate, and if you decide to work with them, their fee structure is different than any other agency.  They charge $100 per creditor instead of the flat percentage fee up front, and then 25% of whatever they end up saving their clients, unless they don’t reach that magic 30% figure, which almost every debt consolidation company will attain.  They also offer an in-person visit if you decide to try to visit them, charging $50 for the pleasure, and if you’d like to talk to them live via Skype, the web conference is $125.  That seems sort of excessive since Skype is free, and they only offer a ½ hour consultation.

However, they only take people with really high debt.  Most debt consolidation companies say the prospective client must have debt of at least $10,000; Trident Debt Solutions will only take you on if your debt is more than $40,000.  They’re also hoping that potential clients will have a lump sum of at least half of what they owe so they can begin working for you.  They’re rather not have to wait for months while your credit gets trashed, but they will work with someone if they can pay enough to help them get you out of debt within 18 months or less.

Trident Debt Solutions seems like a reputable company that does things their own way, and it’s obviously worked for nearly 20 years.  Since they work with anyone anywhere, they’re worth at least a telephone call to learn more.