Debt Relief / Company / Debtblue

DebtBlue Reviews: Did You Get the Mailer?

Written by Ben Tejes
Updated Dec 15th, 2023
Did you get a DebtBlue mailer that stated you were pre-approved for an advantage loan, but eventually got denied? Have you read the recent lawsuit?

Or, have you received a mailer from the DebtBlue negotiations department that your response is required and that you have 10 days to contact their office? If you don't, does the letter state that you will face extra fees and penalties? 

But, what is a debt consolidation program? What is DebtBlue? How does DebtBlue get paid?

We will review all of that and more, so let's get started.

Is Debt Blue A Loan Company?

You may have received a letter from Debt Blue stating that you are pre-approved for an advantage loan, and it appears that DebBlue may be a debt relief company(source), but that it's owner Financial Freedom Group, LLC may also own Sky Bridge Financial that is a licensed state lender.

Your next question may be "what is Debt Blue?", so let's cover that next.

What is Debt Blue?

According to its BBB, DebtBlue provides debt relief services. DebtBlue is owned by Financial Freedom Group, LLC, who also owns Sky Bridge Financial (SBF).  DebtBlue is an authorized/ registered/ licensed broker of SBF.  SBF is a fully licensed state lender and works through a federal charter to provide loans throughout the US. 

If you are unfamiliar, Debt relief is the process in which a third party negotiates with your creditor on your behalf. The goal of a debt settlement firm is to find a lower payment that will fully satisfy the debt that you owe. So, a debt relief may try to settle a $10,000 credit card balance for $5,000. This can provide ample savings and a potential lower monthly payment.

I was the previous CEO of a debt relief company, and I believe debt relief can be a good option for some, but not for others.

Let's next cover DebtBlue's history next.

Debt Blue History

According to its North Dallas BBB page, DebtBlue started in 2004, so the company is nearly 20 years old. While DebtBlue started in 2004, it did not open a BBB file until August, 2019. The company is headquartered in Richardson, Texas, and you can reach the company between the hours of 8 am and 8 pm, Monday through Friday, and Saturday between 9 am and 2 pm.

Debt Blue Lawsuit

It appears that there has been a lawsuit files against Sky Bridge Financial and DebtBlue in the court of Ohio under Case 2:23-cv-02926-EAS-KAJ. The lawsuit involves allegations that there has been illegal use of and access to the private financial data in the consumer reports of financially distress consumers. 

The lawsuit alleges that the Plaintiff got a mailer stating pre-approval for a loan of 7.99% interest rate. When the plaintiff called into the DebtBlue representative allegedly stated that the individual would not qualify for a loan based on the credit score, but that he pitched the Plaintiff a debt settlement program.

How Much Does DebtBlue Cost?

According to DebtBlue’s FAQ’s, DebtBlue charges typically 25% of the debt that you enroll in the program. No fees are collected upfront, but that’s standard in the industry. 

Often, debt relief companies state that it charges between 15-25%, so 25% is potentially on the higher end of that spectrum. The companies that we have partnered with tend to charge between 15-20%, potentially with some exceptions. 

I liked how DebtBlue was also forthcoming about the Veritas Legal Plan which is another $39.95 per month. Just for reference, if you are in a 48 month program, that would be an additional $1917.60 in fees you are paying for legal protection. Generally, debt relief companies offer this in case of a debt collection lawsuit for one of your accounts.

Many debt relief companies should understand which creditors are more likely to sue as your accounts often go past due before the company settles, so it’s unclear why they would pitch this product if your creditor mix all had a low lawsuit likelihood of suing.

Debt Blue Reviews

When you look at DebtBlue reviews, you’ll notice some positive and also some negative reviews. Let’s dig into BBB and Google reviews first.

BBB Reviews

According to BBB, DebtBlue maintains a A+ rating with a 4.79 based on 896 customer reviews. At the time of this writing, DebtBlue is accredited in the Tempe, Arizona division with an A+ rating and is also BBB accredited in the North Dallas region. It appears that the Tempe Division and the North Dallas division have now merged. So, here's the BBB information for the North Dallas divsiion.

DebtBlue North Dallas 

Debt Blue also had 23 complaints in the last 12 months and 54 complaints in the last 3 years. It can be extremely useful to read complaints. One complaint mentioned that the individual called multiple times to cancel their membership, but was unable to get someone on the phone to call back to cancel.
Picture of BBB complaint where individual stated it's hard to cancel DebtBlue
A second complaint addressed the letter that they had received from DebtBlue stating that the individual had 10 days to call their office about an adjustment of credit accounts. 
Picture of BBB complaint that was not happy with DebtBlue's marketing techniques.

Let's next look at the Google reviews.

Google Reviews

On Google, DebtBlue maintains a 4.8 rating based on 1,738 reviews. Sometimes debt relief companies will ask for a review shortly after entering a program, so I like to see reviews where the individuals shows that they have been in the program long enough to experience the process.

On the positive side, June J stated in their review that they have had a good experience thus far. June mentioned that they reached the first settlement at about 90 days, which was faster than they expected.

DebtBlue Google 5 Star Review picture

On the other hand, Olivia stated that she had a negative experience. In her review, Olivia stated that the communication has been terrible. She stated that the creditor had threatened legal action and she had been served in a debt collection lawsuit. Many debt relief companies know who will sue, so it’s unclear why Debt Blue provides a lawsuit likelihood calculation to her before entering the program. Or potentially, they did, but this one ended up in a lawsuit.

DebtBlue Google 1 Star Review picture

Facebook Reviews

On Facebook, DebtBlue has a 4.6 rating based on 36 reviews. As seen below, Bridgette mentioned in her review that Debt Blue has lifted a burden off for her.

Debt Blue Facebook Reviews and Ratings

In Summary

DebtBlue is BBB accredited in the North Dallas region. Also, DebtBlue is an accredited member of the American Fair Credit Counsel and has a BSI ISO certification

Debt Blue may tend to charge on the higher end of the fee structure at roughly 25% of enrolled debt. DebtBlue has accreditations with AFCC and BSI, and while it may not yet be accredited in the North Dallas region, it is accredited in the Tempe region with an A+ rating.