Industry Financial Services | Products Debt settlement | |
Founded 2001 in Phoenix, Arizona and Sacramento, California Headquarters Phoenix, Arizona and Sacramento, California Website | ||
Nationwide Asset Services is a privately owned debt settlement company based both Phoenix, Arizona and Sacramento, California. Nationwide Asset Services is also affiliated with several other firms that provide nearly identical services and their own separate websites including American Debt Arbitration and Universal Debt Relief.
Contents
Background
Debt settlement companies negotiate with creditors to accept reduced payments. Following the “Nationwide Plan,” the company claims that a person with $20,000 in debt can pay as little as $14,400 over three years time to completely eliminate the debt.
The Better Business Bureau reports that Nationwide Asset Services has an “F” rating, the lowest rating given, and that it has received dozens of complaints against the company in the past 36 months.
The Better Business Bureau reports that American Debt Arbitration also has an “F” rating, the lowest rating given, and that it has received dozens of complaints against the company in the past 36 months.
Controversy
Currently, these companies face lawsuits in at least four states:
Illinois
In February 2010, Illinois Attorney General Lisa Madigan filed suit against Nationwide Asset Services and American Debt Arbitration. The suit alleges that the defendants have violated the Illinois Consumer Fraud and Deceptive Business Practices Act by misrepresenting the services they can provide to consumers and the impact that those services will have on consumers’ credit. The complaint asked the court to enter a permanent injunction barring the defendants from engaging in debt settlement in Illinois and order the defendants to pay restitution for aggrieved consumers, civil penalties of $50,000 for violating the Consumer Fraud Act, an additional $50,000 penalty for each violation committed with the intent to defraud, as well as a $10,000 penalty per violation committed against a person 65 years or older.
Florida
In October 2009, The Florida Attorney General Bill McCollum filed a lawsuit against Nationwide Asset Services and its many affiliates. The suit alleges several charges including charging consumer excessive fees, false and misleading advertising, and deceptive and unfair trade practices. The attorney general said that most of the firm’s sales were made by outbound telemarketing sales calls.
New York
In May 2009, New York Attorney General Andrew Cuomo sued Nationwide Asset Services for fraud, deceptive practices and false advertising. The suit alleges that customers paid high fees in advance but were still harassed by creditors, often ending up with more debt than they had before. Nationwide Asset officials said they've been cooperating with the attorney general's probe. According to Nationwide's attorney, the firm denied any wrongdoing.
California
In December 2005, the State of California issued a “Desist and Refrain Order” against Nationwide Asset Services and all of its affiliates, requiring them to cease doing business in that state without the proper licenses. The order also mentioned that Nationwide Asset Services has affiliates operating under four different names, and listing six different addresses.