Nationwide Asset Services

Debt settlement companies negotiate with creditors to accept reduced payments. Following the “Nationwide Plan,” the company claimed that a person with $20,000 in debt could pay as little as $14,400 over three years time to eliminate the debt.[https://web.archive.org/web/20081004145153/http://www.nationwideasset.com/the_nationwide_plan/index.html Nationwide Asset website]

In 2010, the Better Business Bureau reports that Nationwide Asset Services and American Debt Arbitration had an “F” rating, the lowest rating given, and that it had received dozens of complaints against the company in the previous 36 months.[http://www.bbb.org/central-northern-western-arizona/business-reviews/debt-settlement-companies/nationwide-asset-services-in-phoenix-az-2000576/ Central-Northern-Western Arizona Better Business Bureau, May 11, 2010][http://www.bbb.org/west-florida/business-reviews/debt-negotiation-settlement-companies/american-debt-arbitration-in-clearwater-fl-90007844 West Florida Better Business Bureau, May 11, 2010]

These companies had faced lawsuits in at least four states:

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.[http://www.illinoisattorneygeneral.gov/pressroom/2010_02/20100210.html Illinois Attorney General Press Release, Madigan Sues Four Debt Settlement Firms to Stop Abuse, Deceptive Practices, Feb 10 2010, accessed May 11, 2010]

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.[http://myfloridalegal.com/webfiles.nsf/WF/KGRG-7WYJCD/$file/ADAcomplaint.pdf State of Florida Attorney General, accessed May 11, 2009][http://www.myfloridalegal.com/newsrel.nsf/newsreleases/1F9C0F9B7626952A8525765400536D22 Attorney General McCollum Targets Debt Relief Industry, accessed May 11, 2010, press release]

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.[http://www.nydailynews.com/money/2009/05/20/2009-05-20_debt_companies_socked_with_suits.html New York Daily News, Debt Companies Socked with Suits, May 19, 2009][http://www.ag.ny.gov/media_center/2009/may/may7a_09.html New York State Attorney General Andrew Cuomo Announces Investigation into Debt Settlement Industry, May 7, 2009] According to Nationwide's attorney, the firm denied any wrongdoing.[https://www.nytimes.com/2009/05/20/business/20debt.html New York Times, Two Firms Accused of Fraud in Debt Settlement, May 20, 2009]

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.{{citation |url= http://www.dbo.ca.gov/ENF/pdf/2005/Nationwide.pdf |title= Desist and Refrain Order |author= State of California, Department of Corporations |date= December 5, 2005 |archiveurl= https://web.archive.org/web/20150910032305/http://www.dbo.ca.gov/ENF/pdf/2005/Nationwide.pdf |archivedate= 2015-09-10 |url-status= live }} Further filings were made in 2006 and 2007.{{citation |url= http://www.dbo.ca.gov/ENF/pdf/n/nw_statement.pdf |title= STATEMENT IN SUPPORT OF ORDER LEVYING ADMINISTRATIVE PENALTIES, CLAIM FOR ANCILLARY RELIEF AND RECOVERY OF COSTS PURSUANT TO FINANCIAL CODE SECTIONS 12105 AND 12106 |author= State of California, Department of Corporations |date= July 5, 2006 |archive-url= https://web.archive.org/web/20150910043802/http://www.dbo.ca.gov/ENF/pdf/n/nw_statement.pdf |archivedate= 2015-09-10 |url-status= live }}{{citation |url= http://www.dbo.ca.gov/ENF/list/n/nw.asp |title= Superior Court: County of Sacramento Case #: 06CS01309, OAH N2005120755 |author= Californial Department of Business Oversight |archiveurl= https://web.archive.org/web/20180801182059/http://www.dbo.ca.gov/ENF/list/n/nw.asp |archivedate= 2018-08-01 |url-status= live }}

{{reflist}}

• [http://www.nationwideasset.com/ Nationwide Asset Services website]
• [http://www.adafla.com/ American Debt Arbitration website]
• [http://www.adatoday.com/ American Debt Arbitration website]
• [http://www.universaldr.com/ Universal Debt Reduction website]
• [https://www.ftc.gov/sites/default/files/documents/public_comments/2009/10/543670-00216.pdf Why the Debt Settlement Business Model Fails], John C. Gray, Brooklyn Legal Services - uses Nationwide as an example

Category:Companies based in Sacramento, California

Category:Companies based in Phoenix, Arizona

Category:Financial services companies of the United States