Nationwide Asset Services
| Company type | Private |
|---|---|
| Industry | Debt settlement |
| Defunct | 2015 |
| Headquarters | Phoenix, Arizona and Sacramento, California , United States |
| Products | Debt settlement services |
Nationwide Asset Services was a privately held debt settlement firm based in the United States, with offices located in Phoenix, Arizona and Sacramento, California. It maintained connections with other companies providing comparable services, such as American Debt Arbitration, Universal Nationwide, and Universal Debt Reduction. The organization encountered legal challenges across several states, which resulted in operational limitations and ultimately led to its shutdown in 2015.
History
Debt settlement firms engage in negotiations with creditors to lower the amount owed by clients. Nationwide Asset promoted its “Nationwide Plan,” which suggested that a debt totaling $20,000 could potentially be resolved for as little as $14,400 within a three-year period.[1]
By 2010, the Better Business Bureau had assigned an “F” rating to both Nationwide Asset Services and American Debt Arbitration after receiving numerous complaints over a three-year span.[2][3]
Controversy
Legal actions were initiated against these companies in no fewer than four states:
Illinois
In February 2010, Illinois Attorney General Lisa Madigan filed a lawsuit against Nationwide Asset Services and American Debt Arbitration, accusing them of breaching the Illinois Consumer Fraud and Deceptive Business Practices Act. The complaint alleged that the companies misrepresented their services and failed to disclose the impact on consumers’ credit. The legal action sought a permanent injunction to halt their debt settlement operations within Illinois, restitution for affected customers, and civil penalties up to $50,000 per violation, including additional sanctions for willful fraud and offenses targeting senior citizens.[4]
Florida
In October 2009, Florida Attorney General Bill McCollum brought suit against Nationwide Asset Services and related entities, citing excessive fees, misleading advertising, and deceptive business practices. The complaint highlighted that the majority of sales originated from outbound telemarketing calls.
New York
In May 2009, New York Attorney General Andrew Cuomo initiated legal proceedings against Nationwide Asset Services on grounds of fraud, deceptive conduct, and false advertising. The suit alleged that customers were charged substantial upfront fees but continued to endure creditor collection efforts, which in some cases caused their debts to increase. Representatives from Nationwide stated they were cooperating fully with authorities and denied any misconduct.
California
In December 2005, California issued a “Desist and Refrain Order” targeting Nationwide Asset Services and its affiliates for operating without the necessary licenses. The order listed various affiliate names along with their addresses. Additional enforcement actions were filed in 2006 and 2007.
External links
- Official website of Nationwide Asset Services
- Website for American Debt Arbitration
- American Debt Arbitration official site
- Universal Debt Reduction official website
- Analysis on the Failings of the Debt Settlement Industry, John C. Gray, Brooklyn Legal Services – references Nationwide as a case study