American Debt Arbitration (ADA) is a corporation based in Clearwater, Florida that specializes in debt negotiation. They work with affiliated entities to provide these services to clients who find themselves buckling under a burden of debt too large to manage on their own.

Here are some quick facts about American Debt Arbitration:

Company Founded:- Incorporated September 2003/Business Start Date March 2004

Years In Business:- 5

Number of Employees:- unknown

BBB Rating:- F

BBB Complaints:- 56 complaints in 36 month reporting period.

Fee Information:- All fees are included in monthly payment

Escrow Available?:- Yes

Source of Funds:- Client savings (payments)

Fee Structure:- Fees equal 29% of the amount you save/$49 monthly administrative fee

Avg. % Settled:- 25%-40%

Refund Policy:- unknown

Minimum Debt Required:- unknown

About the Company:

This company has been in business for just over five years and is currently able to do business in 25 states within the continental US. To see if you live in a state where ADA conducts business check out their FAQ section for more information. ADA has a rating of F on the Better Business Bureau and has received 56 complaints in the last thirty-six month reporting period. The BBB lists the following reasons for the negative rating this company has received: number of complaints filed, number of complaints filed that were not resolved, one or more serious complaints and the nature of the business in which this company operates. Based on the information located on the company website and other sources on the Internet, it appears this company represents your typical debt settlement company which provides debt negotiation services to clients enrolled in their program.

The Program:

ADA offers the standard debt settlement program. They aim to save you up to 40% of your current debt total in an average of 30-36 months. As with any debt settlement program, the amount of money saved or length of time in the program varies for each individual. The program costs are based on the amount of money they actually save you based on your original balance owed. They charge a “low” monthly administrative fee of $49 which appears to be in place throughout the duration of the program. The fees are included in your monthly payment (standard practice in the industry) and include enrollment fees, bank fees, and settlement fees which will equal 29% of the amount you save.

Website Experience :

The company website is pretty basic compared to many other sites that I have come across while doing reviews. It is set up in a manner that is easy to use for even the computer “challenged” however I find the information provided to be a bit lacking. While they address how they will reduce your debt, they do not provide any of the information I commonly look for to gauge how forthcoming a company is to potential clients. There is no mention of possible tax consequences or lawsuits (both of which are possible even if they are not likely) and they do not stress this process should be considered only by individuals facing a severe financial hardship. I won’t go as far as to say they “glorify” the process, however for a person unfamiliar with the process, reading the information provided would make it seem debt settlement is just another option for those seeking relief from debt….which in not the case. I feel the website while it provides most of the information a client may be looking for, it does not address the negative aspects of this prospect. To me this is a big red flag that they (ADA) are not really interested in giving potential clients the “big picture” which is necessary to make an informed decision whether debt settlement is the right choice for their financial situation. Please keep in mind I am neither for nor against debt settlement as a process, however I feel most of these companies are coming under fire due to the fact that while many do not out right mislead consumers, many do not make the effort to fully disclose all the information that should be clearly outlined.

For more information on this company found on the web, click here. Please remember when reading reviews for companies that the opinion expressed here is just that, my opinion. I do not have any dealings with this company and cannot say with certainty whether or not they are a good company to work with. As always, we encourage any readers with personal experience to share it in the comments section to help myself and others gain a better perspective of this company and their operations.