BBB Warning Businesses About Specific Collection Agency

http://www.insidearm.com/news/00013658-bbb-warning-businesses-about-specific-col/

The Better Business Bureau (BBB) today issued an alert for small business owners to beware a debt collection agency operating out of California that makes a ton of promises and requires upfront payment, but doesn’t provide any services.

Issued by the BBB’s St. Louis office, the warning is for companies all over the U.S. The alert was triggered by a high volume of complaints from small businesses about the same collection agency, Financial Adjustment Solutions of Woodland Hills, Calif.

Michelle Corey, St. Louis BBB president and CEO, said the case is unusual in that the complaints are coming from small businesses who hired the debt collector. Typically, the BBB receives complaints from consumers claiming they were harassed by collectors.

“This company is taking money saying they will collect on bills, but then offering no evidence that they are doing anything,” she said. “No business can afford to pay for empty promises.”

An example the group gave was the experience of a funeral home owner in Southern Illinois. He agreed to allow Financial Adjustment Solutions to collect customer debt after several unsolicited and high-pressure phone calls. Representatives of the collection agency assured him that they had found bank assets and life insurance proceeds that they could freeze in order to collect the debt. However, they demanded that the funeral home to pay upfront for legal fees.

Since the payments were made in February, the company has provided no evidence that they have made any effort to collect the debt, the funeral home owner said.

The BBB gave several other examples of companies with shared experiences, with the would-be clients noting that the matter has left them “sick to their stomach” and feeling “suckered.”

The group noted that the allegations are similar to those lodged against Rumson, Bolling & Associates and its executive team. The FTC got involved in that case and earlier this year reached the last in a series of settlements with the firm and its principals.