US Financial Solutions

This company currently uses direct mail solicitations concerning a government monitored hardship program, which appear to originate from a government entity. The solicitation generally has the appearance of a government notification form, and displays various account numbers, code numbers, or advisories concerning limited eligibility or response time.

A closer look at the solicitation should provide clues as to the legitimacy of the offer. The solicitation letter contradicts itself. It starts out talking about a “government monitored hardship program” and then ends with fine print that says, “This is NOT a government endorsed or sponsored program and USEFS is NOT affiliated with any governmental agency.” The only thing anyone who receives this mailer has been pre-qualified for is to be marketed to. The pitch made in it is the same as you will see in other recent debt relief mailers that have been sent out.

We believe this company’s advertising is deceptive or misleading. Although the solicitation does display a disclaimer, Federal laws make it illegal to falsely imply government affiliation to a non government entity. 18 U.S. Code sec. 912 states: Whoever falsely assumes or pretends to be an officer or employee acting under the authority of the United States or any department, agency or officer thereof, and acts as such, or in such pretended character demands or obtains any money, paper, document, or thing of value, shall be fined under this title or imprisoned not more than three years, or both.

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.