8/24/2010 1:41 PM (PST)

Hi Marie,

I was unable to locate a report on the company, which means they aren't a BBB Accredited Business and we haven't received complaint. They may also be a new company. In general, our experience with debt negotiating companies is that they attract customers with large credit card debt by claiming to be able to settle those debts for a fraction of their face value. They often claim that their services are more effective than those provided by credit counseling services and that they are a superior alternative to bankruptcy.

These companies usually instruct their clients to stop paying their creditors. Some companies direct clients to make their payments to the debt negotiation company instead. They promise that when sufficient cash has been accumulated to offer a settlement to a creditor, they will do so. They go on to say that their program may take two or three years to complete. Most companies collect their fees upfront and generally the fees are based on some percentage of the promised savings.

Other companies simply collect their fee and advise debtors to save their money to pay their creditors themselves. California law limits the amount of fees debt negotiators can charge, but by not collecting the money and distributing it to your creditors, companies can remove themselves from the limiting statutes and charge whatever they wish. What they are supposed to do for you while you’re saving up your money is to contact your creditors and inform them that they’re working with you, negotiate the amount to settle your debt, and ask them stop contacting you.

Complaints on these companies allege that creditors continue to harass clients, fees and interest continue to accumulate, and that the companies do not contact the creditors. Usually, creditors turn the claims over to collection agencies, file suit and pursue collection of the money owed to them. Debts are seldom settled, customer's credit is ruined, and many people are sued forcing them to seek bankruptcy protection. Typically, it is difficult to obtain refunds from the companies.

8/24/2010 7:09 PM (PST)

Thank you for the info

3/15/2011 2:13 AM (PST)

If it is the same Legacy Debt Solutions that almost worked over a client of mine I certainly would recommend you stay far away from them. My client had no business in any debt settlement company, but their sales people only saw dollar signs and pitched her on a program that would have literally bankrupted her within a year. You can read about her experience with them here I would not use them based solely on their sales tactics. I don't know if they are even still in business or if the new FTC law drove them out, but they really tried to work over a client of mine last year until I found out about it and got her out of the program. You can read about her experience here http://damonday.com/1017/legacy-debt-solutions-vs-credit-solutions/

4/19/2014 10:55 AM (PST)

I am sorry to hear that some people have not had success with this company as I did and only have good things to say. And yes, they are still in business. They never lied to me about the fact that "yes" creditors were going to harrass me, of course they are going to. They never promised that creditors wouldn't try anything to collect the money, which they also did. I was over $75,000 in debt and had no way of getting out of it with only being able to make minimum payments. Did it mess up my credit, of course it did. I did not go into it thinking that wouldn't happen. What I did go into it knowing is all the facts and I got those facts from Legacy Debt Solutions. Perhaps the progam of 3 years can be overwhelming for some but I am happy to say as of this month I am done. Something that would have never happened in my lifetime otherwise without winning the lottery. My debts were indeed settled but NO not without ruining my credit. Was there a way to accomplish that in 3 years without doing so, again, NO. My agent emailed me constantly and kept in touch, if I had a problem he was always available by phone. On months I didn't have the funds to be withdrawn he worked with me and we skipped a month. When I had a creditor attack my checking account he was on the ball and took care of me. I didn't go into it blindfolded thinking it was going to be easy or that issues weren't going to arise. The first year was the toughest with the bothersome phone calls from creditors. I'm sorry, but it is going to happen. But again, I was told upfront and knew what I getting into. I don't think you are going to deal with any company and not have those joys. It is part of the process. Did it reduce how much was coming out of my pocket every month to make minimum payments, Yep, it sure did by about $900 a month. Did my actual amount of debt owed get reduced, Yep, it sure did by about 50%. Again, perhaps this solution is not for every person out there, but it saved me and so did this company. In the three years I have worked on rebuilding my credit and am happy to say that I was able to aquire a loan last year thru a BANK for a 4 wheeler and he was happy to see I made the strides to improve my situation as he told me, it was not going to happen any other way.