Debt Reduction Services has been operating for 20 years and helps customers in 47 states to reduce their debt by way of consolidation and debt management plans. There are a lot of attractive aspects to its service, including fair pricing and reasonable interest rates, but there are also complaints of the company employing pushy sales reps and aggressive telemarketers.
DRS charges a fair price for its service, $50/month, which is about average for the industry. If one of their certified counselors determine a consolidation program would be suitable, consumers are able to enroll their unsecured credit accounts for a one-time fee up to $50. The company is also transparent about its interest rates, which we appreciate, charging just 7.67%, which is better than many competitors.
If you’re not sure what to do about the debt that you have, Debt Reduction Services offers a free consultation to anyone, regardless of whether or not you actually enroll. We like to see this kind of offering from companies. Additionally on it’s list of resources, DRS provides an attorney listing under each state. This tool enables consumers to easily find an attorney if bankruptcy is determined to be the best option.
Money Back Guarantee
Debt Reduction Services gives clients peace of mind when it comes to satisfaction. A money-back guarantee is offered, and the company claims clients’ financial success is its ultimate goal If a client is unsatisfied with the results, the company will refund the enrollment fee. In some instances, it may also refund some of the monthly installments paid to the company.
- A+ rating with the BBB
- Certified credit counselors
- AICCCA accredited
- 20 years in business
- ISO certified
If there’s one thing to complain about with DRS it’s that while the company does many things well, there is nothing about it that is truly AMAZING. Their rates are better than average, their fees are better than average, they’ve been in business for a while, but they don’t have the best rates, the best fees, or the longest track record.
Debt Reduction Services is transparent about its interest rates, but some customers have reported seeing their fees increase after signing a contract. Overall, we’d like to see companies, including Debt Reduction Services, be more transparent about their fee-schedule, especially as this company is a non-profit firm.
Complaints about DRS seem to have less to do with the company’s product itself and more to do with pushy salespeople and aggressive ‘hard-sell’ tactics as they try and get people to sign up for their service.
- No NFCC accreditation
- Not available in MI, NH, or NV
Debt Reduction Services was clear when explaining their pricing structure, which is a marvel in the debt reduction world. Most companies require you to supply personal information to get a quote on credit card debt, because credit card companies have different rates that they are willing to negotiate to.
There are 2 fees – the enrollment fee, and monthly maintenance payments, which are in conjunction with your payments to your creditors. The enrollment fee is a one-time payment of $49. The monthly payment is either 15% of the monthly payment to the creditors or $10 per creditor, with a cap out of $69.
The enrollment fee to get started is $49.
The company provides free consultations over the phone. Their consultants are very well informed and polite, so you should feel very comfortable taking advantage of this option.
Time in Business
Debt Reduction Services was started on May 01, 1996, in Idaho. They have been in business for 19 years.
Debt Reduction Services has a sterling A+ rating with the Better Business Bureau. Like all businesses, they’ve had a few complaints but they’ve taken care of them and they are very responsive to needs expressed by customers. In one case, a customer complained that their emails had not been answered and one of the credit agencies failed to result in a resolution. Debt Reduction Services responded by saying that they had not received any emails, but would give another line of communication for the customer so that any issues could be resolved immediately. The company also reimbursed the customer for 3 late fees worth a total of $85, even though the company never differed from their contractual agreement.
Along with their free consultations, Debt Reduction Services has a blog called “Credit Counseling Talk”. It covers a wide range of topics, including debt collection and identity theft protection.
The most exciting part of their debt education offering are the free webinars and trainings. These are recorded for individuals to watch whenever suites their schedule best. They offer weekly 60 minute long trainings in their office for locals, or anyone that happens to be in town. They also offer seminars in outside offices and a free financial tips newsletter called eTips.
Overall their debt education is very good.
Debt Reduction Services will not refund any money that you have already invested into the program, although you are free to cancel your services at any time. Any money that you have given to creditors while part of the company’s debt consolidation program is safe and considered paid.
Data and Web Security
They put a lot of effort into insuring that your information is safe. From all that we’ve seen, you can feel confident that they will take care of any information you provide them with.
Unsecured vs. Secured Loans
They assist with unsecured loans only.
Mobile Friendly Site
Debt Reduction Services website is not mobile friendly, so your best option is to work off of a desktop or laptop. One positive is a button in the top right-hand corner of the site that lets you view everything in Spanish.
Debt Reduction Services wants to see you succeed, but understands that sometimes the customer wants to take a different route, so you can cancel your work with them at any time. Though, by doing so, you will forfeit any fees that you have already paid the company. Since Debt Reduction Services pays creditors monthly, you won’t have to worry about those payments being lost if you cease working towards consolidation.
Debt Reduction Services is a non-profit “management and credit counseling organization”. They specialize in debt consolidation and debt management, which means that they will work with creditors to achieve a single, low-interest monthly payment, with resolution usually in 5 years or less. One of their top features is a Client Center, where customers can view their progress and previous payments.
They also offer “Pre and Post Bankruptcy Filing Certificates” when bankruptcy is the appropriate option.
Minimum Debt Accepted
The company does not have a minimum debt threshold.
Yes, Debt Reduction Services has an online portal for their customers. After a customer has made their first payments, they are able to see an estimate of their balance. Besides the estimated running balance, the dashboard also shows how much of their payment went to each creditor and when those payments were made.
Debt Reduction Services’ credit counselors are certified through the Center for Financial Certifications, an independent credentialing body recognized by the debt management industry and individual state regulators and creditors.
Debt Reduction Services is certified compliant by BVQi NA,Inc. to the ISO 9001:2008 Quality Management System Standard in order to ensure the highest level of quality service to their clients.
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