Fidelity Debt Solutions Complaints
Fidelity Debt Solutions – www.FidelityDebtSolutions.com (no hyperlink for you Fidelity!) – is a debt consolidation company based in California. They’ve been in business since 2004, although they claim they’ve been in business longer than that. It’s possible they’re counting the years they were a mortgage company before going into the debt consolidation business.
From the first page of their website, you’re left with the impression that there’s something inherently not right. They’re working hard to denigrate other types of debt consolidation efforts, and most of what they’re saying is incorrect.
To begin with, creditors don’t care about working with outside collection agencies. First round collection agencies only get paid if they can get money from people, so creditors don’t lose anything in the process. Once an account gets past a certain age and it’s been charged off, the creditors have basically collected some part of the money from insurance companies, and sell your debt to the next round of collection agencies for a fraction of its worth.
Second, most consolidation loans are not as high as 24%; if that were the case, banks wouldn’t be giving out loans in the first place because people probably wouldn’t be qualifying for them. Also, if one does qualify, debt consolidation loans, if they’re high enough, will cover some of the items Fidelity Debt Solutions says they don’t cover.
On the page where they talk about debt consolidation, they give a definition that supposedly comes from the FTC, Federal Trade Commission. However, that definition is nowhere on the FTC website. What they do say is this:
“You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Remember that these loans require you to put up your home as collateral. If you can’t make the payments — or if your payments are late — you could lose your home. What’s more, the costs of consolidation loans can add up. In addition to interest on the loans, you may have to pay “points,” with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.”
That’s as far as one should have to go to wonder if they’re dealing with a disreputable company. The next step is to do an investigation online to see if there are any complaints. For Fidelity Debt Solutions, there are a lot. We can start with the Better Business Bureau, which gives them a “D” rating; very bad. Next we can see many negative reports from consumers, all saying that the company took their money, and didn’t call any agencies while they continued receiving collection calls. Some people did get sued for high debts by creditors, which the site says will not happen, and when some people talked to these agencies, they were told that Fidelity Debt Solutions hadn’t talked to them, which they won’t do until your credit rating has been trashed.
In other words, Fidelity Debt Solutions is a debt consolidation agency that you should stay away from. They are typical of many debt consolidation agencies who are only out to take advantage of consumers, and there’s plenty of evidence against them. Don’t get taken.
See more:
ComplaintsBoard.com – http://www.complaintsboard.com/complaints/fidelity-debt-solutions-c96065.html
DebtSettlementReviews.com – http://debtsettlementreviews.com/fidelity-debt-solutions
ChoiceRevu.com – http://debtconsolidationservices.choicerevu.com/fidelity-debt-solutions/
RipOffReport.com – http://www.ripoffreport.com/reports/0/348/RipOff0348606.htm
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