Complain about a product or service

Solidium Credit Recovery Services

1920 Main Street Suite 450, Irvine, CA

National Consumer Council • "Trust funds" • Telemarketing calls --- • Court order closes NCCC

Iris of Douglas GA (5/18/04):
I received a phone solicitation re: my total credit card debt and the offer of debt repair service which I needed though I was not behind in any payments nor had been and had a very good credit rating. Each person I was in contact with was professional and knew my approximate debt. I was given a web site to check the legitimacy of the company and all appeared ethical but I went one step further and checked with the Better Business Bureau and they reported there were no problems reported. Solidium and London Financial Group did settle two accounts I owed as I received the forms to report to the IRS for 2003.

Outstanding debts are still unresolved as to how the creditors will be receiving payoffs. I am in debt much worse than I was before for my credit has been ruined by doing what the company representatives advised. They also charged me with fees to handle accounts and by settling the aforementioned accounts cost me approximately $1700 against my tax returns. I feel so stupid but I wanted to pay my debtors off without going into bankruptcy but that seems to be my only recourse now.

This is a correction letter to the one I filed 5/17/04 under my name but had omitted the company name and phone number as well as reporting that my credit was fine until I trusted Solidium to be as good as their word and reports.

Thelma of Burleson TX (5/19/04):
My case is the same as the other cases that are involved with NCC. They called me and offered help with my debt and I took the help. After a year they have only settled one debt of less than $2000 and I have had 4 arbritrations filed against me. When I would contact Solidium they would tell me that was OK, it would just give me more time to collect money in my trust account and then they would be able to settle with these companies.

I did not even know about NCC closing until one of my creditors called me last night and told me that they had been granted the right to contact me for payment. All of what the other complaints have said was very true. I have paid in approx. 6450.00 and they have only settle an account for 1800.00. The first three months (430.00) per month was my service fee for them handling my accounts and then I have a 45.00 fee each month for their services. We were suppose to be debt free in five years. This appeared to be a very legal company and I ask several questions before going with them and they answered the questions and acting very professional at that point.

Maria of Nanuet NY (5/18/04):
In the beginning of July of 2003, I was referred to Solidium by The National Consumer Council. I was having difficulty making payments to my creditors due to suffering several hardships that ocurred in my life. I was looking for a chance to continue paying my creditors instead of declaring bankruptcy. I was promised by Solidium that my debt would be reduced. I was advised to stop paying my creditors and instead open a trust account with London Financial and deposit $972 every month for a period of 72 months.

It is now 10 months later I have paid Solidium a total of $9,930. of which a 3% engagement fee ($3,743.04) to London Financial has been paid as well as $1.82 monthly establishment fee and a $90.00 monthly service fee. My total debt outstanding in the beginning of the program was $106,000. appx. So far wth the late fees, overlimit fees, higher interest rates imposed, attorneys fees, etc. my outstanding debts are approximately $120,000. and they are still growing. I was told that only one account has been partially settled. I have no idea what I have in my trust account at this date.

I am in serious trouble with my creditors. So far five of my creditors have filed motions for judgement against me. The balances in my accounts have grown to enormous amounts. I do not know if my creditors have been contacted with any offers and I am scared of what can happen next.

Vanessas of Aurora CO (4/9/04):
In August of 2003, I realized 4 credit cards had large balances and minimums were hefty, so I returned a phone message to the National Consumer Credit Counseling Service to see what they were offering. They took some intake information and referred me to Solidium, a debt management company. Keep in mind that I did not call this company because I was late or behind in payments - my credit was good, I just had a high debt to income ratio.

The people on the phone at Solidium have always been very professional, so I didn't think I was being scammed. The counseling process was done over the phone where I was asked very specific debt/income information. The guy I spoke to convinced me that I was in a terrible financial situation due to the bills, being a single parent, etc.. He told me about their services, which basically worked where a "trust" account was set up, but the first 3 payments I made (about $700) would go towards Solidium's fees. In addition, about $40 per month servicing fee would be assesed to my account. I thought this was hefty, but considering I was convinced I had to way to get out of the debt, I agreed to the program and signed a lengthy contract.

During the counseling session I was told information about the program and it was recorded. I was told that creditors would prefer to work with their debt management company for negotiations as opposed to seeking legal course of action for non-payment. I was told the creditors still had the option of suing me, but they would likely not do so. I felt releived that I was being pro-active and taking control of my debt which was all college tuition I put on credit cards (I needed to do anything to finish after going for 7 years). It is now 8 months later. NO negotiations have been finalized on my account (they say they will only start this process after funds build up in my trust), my balances on these accounts are growing my leaps and bounds, one has increased $4000 in 8 months!!!, my credit is HORRIBLE, AND I am being SUED by 3/4 creditors!

After all of this, my trust account after 8 months has a whopping $500 in it. WHAT A RIP OFF! I REGRET getting signed up with this company. They mislead consumers by convincing them they are in desperate situations, reassuring them that creditors will likely not sue them (when the opposite is the case). Oh yeah, this company also take a 25% fee of the amount they SAVED you through negotiations. I'm sure I signed this in the contract somewhere, but it wasn't obvious to me.

Let's do the math here. My original debt was $20,000. A $700 fee, plus a $40 servicing fee for 6 years is $2880 plus 25% of about 50% debt negotiation (they claim to negotiate debts at about this rate) is $5000. That is $8580! You mean I have to deal with bad credit for 7 years (versus just 3 more with bankruptcy) and only save a net $1420!

I'm not an idiot. But I feel like one for getting into this program. I have cancelled my contract with Solidium (I can't get any fees back) and now I have to negotiate with my creditors directly after they hate me to try to just get my balances back to what they were before I got into the program. This is a huge rip off and this company should not be allowed to get consumers like this. I am smart! I feel sorry for the people who can't figure this out and I am sorry it took me so long to!

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