FDRS didn’t respond to the demand letter requesting that they either assign attorneys to defend my client against creditors as promised or to eliminate the debts as it promised.  My client is now asking the creditors’ attorneys for assistance to get FDRS to deliver on its promises to eliminate the debts by PAYING the debts.

At the time of enrollment, the total debt was only about $35,000.  But due to interest, fees and legal expenses it increased to about $50,000.

FDRS and its Kathy Quintos provided the most outrageous documents for filing with the courts and arbitration and the creditors’ attorneys had to respond and racked up quite a few hours in attorney time.

Ms. Quintos can look forward to jail time — unauthorized practice of law is a serious issue in California.

A large pdf by the LA County district attorney with LOTS of very interesting info:

UNAUTHORIZED PRACTICE OF LAW – MANUAL FOR PROSECUTORS

FDRS received the demand letter, but its response was limited to noting the account as cancelled.  So we just contacted all the creditors or their attorneys (active litigation and arbitration) and I’ll update with their responses.  Hopefully they’ll sue FDRS,  Debt Crisis Solutions and all the other scammers out of business.

If the creditors don’t take action, my client will have to try to find an attorney to have FDRS added to the litigation as liable 3rd party.  

The $6,700 my client paid to FDRS would probably have been sufficient to SETTLE all debts.

Chase has offered other clients to settle for about 10% of the outstanding balance right after the accounts were charged off.

The complaint about the unlicensed practice of law as well as an open letter to the Cal. AG are next.   It’s incredible that they have done NOTHING!

We know they can do better, see Brown Sues 21 Individuals and 14 Companies Who Ripped Off Homeowners Desperate for Mortgage Relief

… Brown has been leading the fight against fraudulent loan modification companies. He has sought court orders to shut down several companies including First Gov and Foreclosure Freedom and has brought criminal charges and obtained lengthy prison sentences for deceptive loan modification consultants. …

They CAN take action if they want to.  The ongoing AG “investigation” of FDRS looks more like they are on the FDRS payroll than an investigation.

Here is the demand to FDRS:

Whom It May Concern:

Since 6/16/08 we have been enrolled in the FDRS program to eliminate $34,089.45 of credit  card debt.  The FDRS fee for eliminating this debt is $8,882.70.  To date, we have paid $6,755.95 to FDRS and FDRS failed to keep its promises.

From the FDRS Membership Timeline:

3. Attorney Enrollment

The client is contracted with our head law firm, after their 2^nd payment has been made.

14. Local Attorney Assignment

Our head law firm assigns the client’s case to an attorney local to the client.

As you know, creditors took legal action against us and despite your promises to assign attorneys, we are STILL representing ourselves.  While Kathy Quintos with FDRS provided legal documents to file with the court, our counterclaims were dismissed and now we are facing the HFC motion for summary judgment.

On the internet we found many complaints about FDRS, other FDRS clients losing in court and ending up with judgments against them.  Apparently the California Attorney General is investigating FDRS.

Unlike many of the other former FDRS clients, we are NOT looking for a refund of fees paid to FDRS.

Our damages greatly exceed the payments to FDRS due to the creditors’ litigation against us after we followed the FDRS instructions to stop payments on the accounts.

We hereby demand that FDRS honors its promise to assign attorneys to represent us:

• Lawsuit/arbitration by HFC in Arizona
• Arbitration by Chase in Georgia

To date we paid $6,755.95 to FDRS and we received nothing of value.  It is time that FDRS assigns the promised attorneys to eliminate our debts.

In the alternative, we are willing to accept $50,000 to settle the debts (offer expires 7/1/09).

According to the HFC filings, the amount we owe has greatly increased due to interest and fees and additionally, we are liable for their legal fees and possibly sanctions for filing the frivolous and bizarre documents provided by the FDRS “legal expert” Kathy Quintos.

FDRS did NOT eliminate our debts and it instead caused our debts to INCREASE dramatically and we suffered so much stress and mental anguish due to the litigation.

Should we not resolve this matter by Wednesday, 7/1/09, we may take the following actions:

1.      We may submit our complaints about FDRS to the California and Arizona AGs, to the FTC and to other regulatory agencies.

2.      We may submit our complaint about the FDRS and specifically Kathy Quintos unlicensed practice of law to the appropriate agencies for prosecution.  According to the Bar Association websites she is not a licensed attorney in California or Arizona.

3.      We may ask the creditors and/or their attorneys for assistance with pursuing FDRS and we may request that FDRS and the responsible individuals be joined in the litigation as indispensable and liable parties.

As you know, we were CURRENT with all our accounts until we enrolled in the FDRS debt elimination program.

4.      We may retain an attorney to pursue FDRS.

5.      We may publish our FDRS experiences and our complaints on the internet to alert other unsuspecting consumers to the FDRS scam.

Due to the litigation deadlines, time is of essence.

Sincerely,

…