Debt or credit management -- Didn't provide services promised -- Complaint #17871046

Complaint Overview

Complaint ID: 17871046

Company: Clarity Debt Resolution, INC

Product: Debt or credit management

Sub-Product: Debt settlement

Issue: Didn't provide services promised

State: Arizona

ZIP Code: 85286

Date Received: 2025-11-29T12:00:00-05:00

Date Sent to Company: 2025-12-09T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

I enrolled in a debt-resolution program with Clarity Debt Resolution on XX/XX/XXXX to resolve XXXX credit card debts totaling {$22000.00}, including a XXXX XXXX account of {$3300.00}. The company represented that they would negotiate with creditors, begin settlement efforts within 90180 days, monitor my accounts, protect me from legal escalation, and complete my entire program within 24 months. They successfully settled my XXXX and XXXX accounts, showing I was compliant and consistent with payments, but completely failed to settle my XXXX XXXX account. Instead, the account escalated to collections, then litigation, then a {$6300.00} judgment, and eventually wage garnishment, which I only discovered when it was deducted from my paycheck. At no time did the company proactively warn me, guide me, or intervene to prevent legal harm. Their failure in handling the XXXX XXXX account resulted in over {$3000.00} in unnecessary interest and court fees, XXXX garnishments, and severe financial harm. I repeatedly reached out and provided them with escalating notices, but they dismissed my concerns, gave false assurances, and failed to act. I am requesting investigation and compensation for damages 1. Failure to Begin Settlement Within the Contractual XXXX Window My agreement explicitly states : Company will make settlement offers approximately XXXX days after enrollment. Despite this promise, the company made no settlement efforts with XXXX XXXX after XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. This violated their timeline and industry-standard practices. 2. Exhibit C ( Financial Analysis ) Promised a XXXX Completion Timeline Exhibit C, page XXXX of my contract, states : Estimated Program Length : XXXX Months Monthly Deposit : {$780.00} All debts should be resolved within XXXX months I paid consistently and followed the program. XXXX XXXX was never settled instead I was sued. This violated their promised timeline and the suitability assessment they used to enroll me. 3. XXXX XXXX Was the Smallest Debt and the Only One They Failed to Settle I enrolled XXXX debts : XXXX XXXX XXXX Settled Capital XXXX ( {$3300.00} ) Never settled This proves : I was compliant, my payments funded settlement efforts, the failure was isolated to their handling of XXXX XXXXXXXX. XXXX XXXX is known for suing quickly. Any reputable company would have either : warned me, escalated negotiations, acted urgently, removed it as unsuitable for settlement. They did none of these. 4. Suitability Misrepresentation The contract states the program was determined suitable for me. But XXXX XXXX is widely known for : refusing third-party settlement early, suing within XXXX months of delinquency, working poorly with settlement companies. It was negligent to approve XXXX XXXX into their program without disclosing these risks. 5. I Was Never Warned of Litigation I Found Out From My Mail The company failed to notify or prepare me when XXXX XXXX escalated. I learned of : collections letters, attorney involvement, the lawsuit, the judgment, garnishment, only after receiving physical mail, despite repeatedly alerting the company. 6. I Discovered My Wage Garnishment ONLY When My Paycheck Was Deducted The company did NOT notify me that : a lawsuit had been filed, judgment had been entered, wage garnishment had begun. I only discovered this when my employer deducted garnishment funds. This is catastrophic negligence. 7. Repeated Documented Attempts to Get Help Ignored by the Company I repeatedly reached out over XXXX XXXX alerting them at every stage of escalation. Their responses were dismissive, inaccurate, or misleading. XX/XX/XXXX Early Warning Ignored I emailed the company saying I was receiving late payment alerts from XXXX XXXXXXXX and asked if I needed to act. They responded : This is normal. You can unsubscribe. Youre on track. This was false reassurance during a critical early stage. XX/XX/XXXX Attorney Letter Arrived I sent them a debt collection letter from XXXX XXXX XXXX ( Capital Ones litigation counsel ). They told me : Nothing you need to do. We are speaking to that creditor. This was misleading litigation was already escalating. XX/XX/XXXX I Received a Lawsuit Notice I emailed them a court document posted on my door stating that XXXX XXXX had filed a lawsuit. Their reply was : Generic we received your documents Request for a brief discussion No update, negotiation, warning, or plan XX/XX/XXXX Ongoing Legal Notices I emailed again stating : I keep receiving legal documents. Its been over a year. Why is this escalating if you are in touch with XXXX XXXX? They again sent only a generic acknowledgement with no action or explanation. XX/XX/XXXX Wage Garnishment Began My employer notified me that {$270.00} had been garnished from my paycheck. I emailed the company immediately with the garnishment paperwork. They NEVER warned me beforehand. They NEVER informed me of judgment. They NEVER intervened. I had to discover the garnishment myself. 8. Financial Harm Caused by Their Negligence Because of their failure to take action : - My {$3300.00} XXXX XXXX debt ballooned to a {$6300.00} judgment - I was subjected to wage garnishment - I owe {$4500.00} on a second active garnishment- I incurred over {$3000.00} in preventable interest, fees, and court costs - I suffered financial, emotional, and credit harm This would NOT have happened if the company had : - Negotiated within XXXX days - Communicated with the creditor - Warned me of escalation - Responded to my emails appropriately - Managed the debt as contractually required - Removed Capital XXXX as unsuitable

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