FED Credit Debt Relief and New Life Solution SCAM

My first post in this new blog was supposed to be about FREE credit reports.  But I just saw the advertisement for http://www.fedcreditrelief.com/ right here in the Google ads.

2-15-10--FEDdebtRelief-google-ad So I got sidetracked and I checked out FEDcreditrelief.com.

Of course I immediately realized that it’s another SCAM, a total fraud.  But since I want to be able to DOCUMENT my allegations, I used their “qualifier” and answered the 3 questions:

What is your Approximate Credit Card Debt? — $100,000

How many dependents did you claim on your 2008 tax return? — 1

Are You Experiencing Financial Hardship? — yes

On the next page:


YES, I QUALIFY!!!  Isn’t that fantastic!

I immediately called the 1-800-526-5985.   “Jonathon” answered.  Who is this?  “Jonathon”.

I apologized for apparently having misdialed and he then told me that this was New Life Solutions.   Obviously, I dialed the wrong number as I was at website called FED Credit Relief.  He assured me that I dialed correctly and he transferred me to Stephanie.

I didn’t need my “SECURE web pin”.  Stephanie told me that they are New Life Solution and she again asked me what I owe and nothing else and she told me that my $100,000 in debts could be settled for $40,000 — PLUS their fee.  I forgot to ask how much their fee is.

NEXT, I did some RESEARCH.

The domain registration for http://anewlifesolution.com/

Sarpas, David David.Sarpas@anewlifesolution.com
New Life Solution
2101 e. Fourth Street #B260
Santa Ana, California 92705
United States

Created on: 21-May-09

Who is David Sarpas?

According to complaints on the web, he defrauded consumers by enrolling home owners in mortgage modification programs.  From the 11/17/09 California Department of Real Estate ORDER to Desist and Refrain at  http://www.dre.ca.gov/pdf_docs/loanmod_drs/H36357LA.pdf:


1. REFISOUP.COM, INC. is presently licensed and or has license rights under the Real Estate Law, Part 1 of Division 4 of the California Business and Professions Code (“Code”), as a real estate corporation.

2. UNITED STATES HOMEOWNERS RELIEF is not now, and has never been, licensed by the Department in any capacity.

3. GREENLEAF LEGAL SERVICES, LLC is not now, and has never been, licensed by the Department in any capacity.

4. PAUL BAIN is not now, and has never been, licensed by the Department inany capacity.

5. AMIN SARPAS is not now, and has never been, licensed by the Department in any capacity.

6. SIMON YARANDI is not now, and has never been, licensed by the Department in any capacity.

7. DAMON CARRIGER is not now, and has never been, licensed by the Department in any capacity.

8. SUE MEHTA is not now, and has never been, licensed by the Department in any capacity.

9. MAY CHOURY is not now, and has never been, licensed by the Department in any capacity.

10. CHRISTINE ORMOND is not now, and has never been, licensed by the Department in any capacity.

11. DAVID SARPASS is not now, and has never been, licensed by the Department in any capacity.

12. At the time set forth below each and every respondent solicited borrowers and negotiated to do one or more of the following acts for another or others, for or in expectation of compensation: engaged in the business of, acted in the capacity of, or advertised a loan modification service and advance fee brokerage under one or more business names including, but not limited to, “Greenleaf Legal Services, LLC”, “Greenleaf’ or “Greenleaf Modify” soliciting, offering to negotiate or perform loan modification services with respect to loans which were secured by liens on real property for compensation or in expectation of compensation and for fees collected in advance of the transaction.

… [emphasis added]

The order goes on to describe in detail how people got screwed by these thugs.

I don’t know why there’s a 2nd “s” for David Sarpass, but I don’t doubt that New Life Solutions is registered by the same David “Sarpass” and scamming people is HIS new life solution.  Incredibly, they didn’t even bother to change their address!

From the Order:

2101 E. Fourth St., Suite B260
Santa Ana, CA 92705

There you have it.

But I can’t really blame Mr. Sarpas(s) for defrauding people.  Why shouldn’t he?  


MANY victims complained to the California Attorney General about the Federal Debt Relief System (FDRS) scam and they REFUSED to shut them down!

Read the FDRS DAMAGE REPORTS. Sure, after two years and hundreds of hours of publishing the FDRS scam and being subjected to harassment and abuse by FDRS, I finally put them out of business.  But owner Mark Cella is laughing all the way to the  bank because the California attorney general REFUSES to press charges against these thugs and to put them in prison.

I recently remarked on our corrupt regulators who FAIL to do their job:

Google sues work-at-home scammers

It is utterly ridiculous that GOOGLE has to file lawsuits against people who should be in prison.

The California Department of Real Estate did NOT do whatever it takes to put the criminals in jail and to STOP them from defrauding the “disadvantaged” — the people who don’t have the knowledge and skills to realize that they’re being defrauded until AFTER they have completed the program or the company is out of business.

The California Department of Real Estate repeatedly IGNORED my complaints about false and illegal advertising of mortgages in 2004 and 2005.

They WANTED many millions of home owners to fall for these false advertisements and to get loans they could not afford.  Incredibly, that’s STILL their goal.  They STILL condone the advertising of 0% mortgages, false claims of government programs, etc.  I STILL see the LowerMyBills.com (credit bureau Experian owned) false and deceptive mortgage ads.

Back to FED Debt Relief and New Life Solutions.

Please don’t expect ME to waste my time on them and don’t ask me to work for you free of charge.

If you have an IQ above room temperature, stay away from ALL debt elimination / settlement / counseling, etc. companies.

For profit, non profit — it makes NO  difference.  I’ve NEVER seen one that was worth paying for.

Contrary to Jonathon’s and Stephanie’s sales pitch, there is NOTHING in the Stimulus Package that requires lenders to do ANYTHING for your credit card debt.  They do NOT have attorneys who will keep lenders from suing you as Jonathon claimed.

According to Jonathon, they have the lowest fee in the business (under 9%) and they are NOT bonded so that they can keep their fees so low.   I asked him to email the contract, but haven’t received it yet.  I suspect that ALL your payments go to their FEES until the entire fee is paid, as that is how these scammers tend to operate.   Obviously, nobody in their right mind would pay the fee after they realized they got scammed.

And what does FED Credit Debt Relief have to do with New Life Solutions?

I really don’t know.  The Fed Credit Debt Relief domain is a private registration in Vancouver, WA. It could be an “affiliate” who gets paid huge commissions to bring them businesses OR it could be David Sarpass’ domain.   It’s always a good idea to do the MARKETING under a different name to avoid liability for false claims.

So there you have it.  If you really WANT to settle your debts or collectors are harassing you, research your options.

EDUCATE yourself.

Currently you even get a FREE 6-months subscription to CreditFactors with a $50 donation to Liars and Cheats EXPOSED.

There’s no magic, just a LOT of information for those willing and able to read and learn.

Hopefully my next post will  be about credit reports as planned.

— UPDATE: At Complaintsboard is a LOT of info about their home loan modification scam:

US Homeowners Relief Complaints – Rip OFF

Also, I just received their contract and noticed a DIFFERENT address on the contract:

New Life Solutions (“AGENCY”), located at 635 East 1st St., Suite 247, Tustin, CA 92780, 888-271-7538

I’ll try to upload my payment plan and the contract.

15 Responses to “FED Credit Debt Relief and New Life Solution SCAM”

  1. Thank you for the great information!!!! I got a phone call yesterday from Luis Cervantes, enrollment and registration agent for A New Life Solutions; he made it sound so good until he said they would need my SS# and bank routing and account numbers. I asked to mail me the information and he preferred to send it via fax. Sure enough, I received it a few minutes later and still that feeling about giving out my SS# to stranger was with me so I decided to look it up and found your site. Once again, thank you so much, they almost got me, but with all the info that I just read might as well keep on paying my debt with no ones help.


  2. I’m SO glad to see that at least a few people do their research BEFORE spending thousands of dollars on frauds.

    It is a CRIME that California attorney general Jerry Brown allows scammers to operate with impunity.

    I recently heard that he is running for governor and maybe it’s a good time to point out to him that the SOUTHERN CALIFORNIA cesspool of scammers greatly contributed to the mortgage crisis and they CONTINUE to defraud many MILLIONS of people nationwide.

    Anyway, I’m glad you decided not to sign up.

    You could just stop paying your debts if you are (near) judgment-proof.

    Nobody needs to make monthly payments to these scammers to not pay their bills.

    You can simply set up your OWN savings account and MOST creditors will make you settlement offers after you stopped paying. I’ve seen offers for as low as 10% of the outstanding balance.

    However, the creditors will most likely harass you with daily collection calls and you should do whatever it takes to minimize the harassment — change the number, use a voice mail, etc.

    Signing up with one of these debt settlement companies will NOT stop the calls and will NOT prevent lawsuits.

    Only an ATTORNEY can stop the calls (they have to call HIM instead of you), but he also can not stop lawsuits. And if you can afford to pay an attorney for this type of service, you might as well pay the creditors.

    Unless you have a LEGITIMATE dispute, there’s little chance of successfully defending against the original CREDITOR. However, if an account has been sold to a debt buyer, your chances of getting their lawsuit dismissed are MUCH better.

    Consider your options, research your STATE law (garnishment, statute of limitation, etc.) and make an EDUCATED decision.

    Good luck!


  3. THANKYOU FOR BEING AT THIS SITE! you saved my pocket spot. I have been scammed by an outfit based in Florida who offer “debt relief, I had recieved an application form that also requested a copy of one of my checks (for their convenience). I had given the check number over the phone, big mistake! I had never sent the application with my agreement with signature. They went ahead and withdrew tota amount from my checking account. Good thing my bank was willing to work with me on this, so I received a credit back to my account and had filed a police report. All is god except I of course am still in debt. Thank you, Barbara

  4. Barbara, you’re very welcome and I’m very glad you got your money back.

    As I wrote above, you don’t have to PAY to STOP paying your creditors.

    And I also want to mention that if there should be a debt settlement company that actually works for the consumers and does NOT charge huge fees upfront for doing NOTHING but taking money out of the consumers account, I’d like to hear about it.

    Unfortunately, I have yet to find ANY debt settlement company with counselors who were COMPETENT and spent several hours to assess the consumer’s financial situation and credit BEFORE even considering settling debts.

    As I wrote above, consider YOUR options.


  5. Thanks for the info, Christine. The fed relief website has all sorts of official-looking stuff on it, but it really tells the reader nothing about the company or its licenses, if any. It looked like a scam, so I dug up around some more and found this site.

    Your homework saved me the trouble of checking further.

  6. FYI. The site is a portal for debt providers and is not owned by David. David was part of their affiliate network of Debt Settlement Advisors. The website is owned and operated by a large company in Los Angeles that works accordingly with State and Federal Regulations for Debt Arbitration.

  7. James apparently works for these scammers.

    A portal for “debt providers?” What have you been smoking, James?

    “The website is owned and operated by a large company in Los Angeles that works accordingly with State and Federal Regulations for Debt Arbitration.”

    What’s the name of the “large company” and what exactly are the “State and Federal Regulations for Debt Arbitration?”

    In fact, there are NO regulations for “debt arbitration” as it doesn’t exist. There is NO such thing as “debt arbitration”, just like there are no “debt providers.”

    I’d LOVE to put these scammers out of business like FDRS, but of course they have a PRIVATE (anonymous) domain registration because they know they’d get sued real quickly by the people they scam.

  8. I got a call from Paul Oester from New Life Solutions and he told me how he can help me with my debt. As an idiot, I gave this guy and company my banking info and decided to sign up. Well, they took out $315 from my account and then they told me I stopped payment and they never got paid. That was a LIE!!! They got my money and now will not return it. I call them over and over and get no one to answer. Yep…this is a SCAM !!!

  9. Contact your bank and report FRAUD. Additionally, you might want to submit a complaint with the California and your state’s attorney general.

    Please let us know whether your bank refunded.

    And as always, make sure you document ALL your business communications by fax / email or record the calls. Scammers will always be liars.

  10. they screwed me too!!!! myra at new life solutions said they never got paid from me…i had my bank send new life solutions my statement showing where they did an ACH debit and took out $315 from my checking account. Myra ignored me for weeks and now says that they never got the money and since I was stupid enough to sign their contract, I cannot do anything about this. THIS NEW LIFE SOLUTIONS IS A SCAM AND ARE THIEFS!!!!! PAUL OESTER CONVINCED ME TO DO BUSINESS WITH THEM AND ONCE I SIGNED OVER, HE AND MYRA BECAME RUDE TO ME. THEY STOLE MY MONEY AND DO NOT CARE THEY TOOK THAT MONEY OUT OF MY CHILDRENS MOUTH. I WILL NEVER EVER DO SOMETHING SO STUPID LIKE THIS GAIN. NEW LIFE SOLUTIONS IS NOT NOT NOT LISTED WITH THE BBB…THEY DO NOT EVEN REPLY TO THE COMPLAINTS THEY GET. DO NOT DO BUSINESS WITH THEM. PLEASE DO NOT!!!!!!!!!!

  11. Yes, I have been scammed by them…no one will return my calls..I have paid them all their money and now I am off to court tomorrow bc of a lawsuit from a creditor…Amazing!

  12. So I guess I have the brain of an ice cube…succumbed to NLF and all of their so called promises. I even did research and couldn’t find anything about them! Funny,now I can find all kinds of info! For 4 months we paid out $1400…we are now at the end of the program to find out we’ve been totally ripped off…Stay away from any of these ppl! Even the names are the same; Stephanie, Tiffany, Kevin Sharp, Brandon and my advisor who will hold my hand thru the entire process: STEVE DAVIS…WHICH IS PROLLY A SWITCH FROM DAVE SURPASS! hA HA…I guess the laugh is on me!

  13. Sorry to see that so many people get scammed.

    The ONLY upside is that you have a LEGITIMATE dispute when creditors and debt buyers come hounding or suing you. And I wish you took the time to file a public complaint with the Cal. AG. The REAL crime is that these thugs are allowed to defraud people with impunity and the REGULATORS deserve more jail time than these crooks.

    Also, if they are still in business you CAN sue them.

  14. I received a call from New Life Solutions Feb/29/2012 telling me how they can reduce my mortgage saving me up to 70%, and that 90% of their clients are with Wells Fargo Home Mortgage that have been helped, I was convinced that I was finally going to get help, they asked me to gave them my S.S.# and banking routing number, I did not have it on hand and told them that I will call them back but insisted that I will loose my chance to qualify if I hang up, instead they will call me back in 5 minutes as I gathered my personal information. They sent me a contract thru Fed Ex email and told me once you received it call them as soon as possible to start my contract. I went to fed ex once received the contract I saw my name signed and initials on the contract, I did not even sign the contract it was not my signature! I was going to be withdrawn on my account 7 monthly payments of $1750.00 & 2 payments of $1500.00 right away I called my bank and froze my account, I went to the website thru my mobile device and found out that people were getting scammed by them. I called them back and told them not to call ever again and to remove me from their list. They kept calling me at work and on my cell after the second day I decided to read the contract and read that I had 5 days to cancel, so called directly the company they use for withdrawing funds called MEDICORE i was still in their system my funds would of started to been withdrawn starting every ninth of the month. Medicore canceled my withdrawals luckily I had two days left otherwise if I just ignore the contract I would have been liable to pay, I was transferred to new life solutions to confirm my cancelation from there I was immidietly transferred to Brandon he tried to convince me that the scam I read on the website was false, I listen and kept saying no thanks so finally he gave up and said have a nice day and hung up. All this caused me arguments with my wife sleepless nights thinking what was going to happen to my finances. Please read the contracts to make sure you have the right to cancel within a grace period. My life is back to normal and I am relieved that all this came to pass, it could been worse

  15. It’s hard to believe they’re still in business!

    Thanks for posting, I hope that others also search on the web BEFORE they lose their money.

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