Armada Debt Solutions is a debt consolidation and credit repair service headquartered in Irvine, California. They have implemented a consolidation plan via settlement to help consumers saddled with unsecured debt find the financial relief they need.
Armada Debt Solutions provides consumers with a debt settlement program designed to release consumers of the liability held with creditors. Strictly adhering to state regulation and operate in full compliance with the FTC, ADS provides their settlement services without any upfront fees.
A free consultation is encouraged to anyone experiencing unsecured financial hardship. A representative will begin the course of the programs with a complete financial analysis to evaluate the current financial situation of each consumer. Program dynamics are geared toward lowering finance charges, consolidate bills to a single payment, and settling debts by up to 50 percent of what is currently owed.
A minimum of $3,000 in unsecured debt must be enrolled into their program, which is lower than the industry standard at $7,500. Clients are required to have a bank account set up with a third-party FDIC insured bank called Global Client Solutions in which funds will be drafted by GCS from a personal bank account into the secured trust account. Keep in mind, fees are associated with holding an account at this third-party bank, and any fees charged will not be refunded. Because this company operates on a performance-based fee model clients will pay ADS nothing unless a creditor debt has been successfully negotiated and settled to the satisfaction of their client’s.
One aspect setting this company apart is their low service charge for settled accounts ringing in at 10 percent of the amount of debt enrolled. For example, $3,000 in unsecured debt enrolled would have a $300 fee applied. Many of the industry leaders charge up to 25 percent of the total amount of debt enrolled. A $29 monthly service fee will be applied, but again, only withdrawn once an account has been settled. If they don’t settle debts, they don’t get paid.
Once qualification is determined, each client will be assigned a personalized account manager to handle their case who will be their main point of contact from start to finish. This method enables a strong professional relationship to be built, without the hassle of being bounced around from rep to rep stating the same details time and again.
Benefits to consumers are highlighted on the site, such as reducing interest rates to as low as 3%, and they emphasize that Armada has been in business long enough to be working with thousands of creditors. ADS claims to have built relationships with some of the nation’s leading competitors such as Wells Fargo, Capital One, Novus, Visa, MasterCard, Sears, MBNA, and Chase, making it possible for them.
In addition to these services, ADS aims to educate clients by providing certified credit counselors to help get clients prepared to navigate through their finances independently after the program term.
Highlights to Armada Debt Solutions include:
- Free consultation
- $3,000 minimum debt
- Low 10% fee
- Credit counseling
We have a few concerns with the company as far as transparency is concerned. Their website lacks important information such as the basis of their programs and what to expect. Information is very limited, although consumer reviews have suggested they are open and up-front concerning all company aspects, including fees, during enrollment.
Another concern of ours is that it seems they provide settlement services, rather than a consolidation plan with credit counseling. Each page on the company website outlines how they can get debts settled, rather than providing a plan for consumers to repay 100 percent of their debt.
Several debt consolidation companies aim at getting consumers financially fit through credit counseling sessions and this company lacks this feature, because again, they appear to be a debt settlement company.
Although it’s not mandatory for these types of companies to provide financial education, it’s certainly an aspect consumers appreciate. We would like to see more educational materials, resources, and tools for consumers to take advantage of.
Price varies, but in the example of a debt load of $4,733, payments to Armada would be $28 for maintenance, plus $10 for every $100 of debt sent to the creditor. This would result in a minimum payment of $150 per month over a 24 month period. However, that is upon the assumption that a lower principal has been negotiated. The company claims debt reductions of up to 50%. There are no prepayment penalties. It may take up to 60 days after program enrollment for the first payment to be made. Setup fees are charged once at the beginning of the program and are based on the amount of debt. Armada will quote the fee for clients based on the debt amount. A banking form is included in the client packet. Armada contracts with Global Client Solutions to draft the monthly payments.
Each situation is different, contact the company for the most accurate information for your situation.
A free consultation is available through the online inquiry form or by telephone.
Time in Business
6 years. They’ve been in business since 2009.
The business is A rated.
There is a payment packet sent to customers, but no other texts or tools are offered by Armada. There are minimal educational resources on the website as well.
If clients decide not to work with Armada after starting the program, all funds are returned. However, any negotiated reductions may revert back to the original debt owed to creditors. An FDIC insured savings account is opened in the customer’s name. If one pulls out of the program, everything except the setup fee is refunded in full.
Unsecured vs. Secured Loans
Unsecured loans are the only types of debt Armada handles, primarily for credit card debt. Other types of unsecured loans re-negotiated are department store cards, personal loans (CitiFinancial, Beneficial, etc), collection bills, or medical bills. They cannot help with tax debt, student loans or child support.
Yes, they do have a mobile friendly website.
Cancellation is allowed any time. The setup fee may not be refunded.
5405 Alton Parkway, Suite 388
Irvine, CA 92604
Monday-Friday 8am-6pm PST
The primary focus is consolidation of credit card and other unsecured debt. What is unusual about Armada is that the consolidation is achieved without using loans. Instead they use negotiation tactics to lower the principal amounts. They also offer credit repair services.
Minimum Debt Accepted
Generally, the minimum is $2,500.
Armada Debt Solutions offers an online portal for their customers through their website, but it is only available to customers on certain types of debt settlement plans.
Armada Debt Solutions is ISO certified.
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