Federated Funding Partners provides debt consolidation services. The company promises a debt-free life within 12 months for a setup fee of $49 and a monthly service charge of $39.99. With a free consultation program, Federated Funding Partners assists customers with creating a repayment plan. They customize the plan based on the expenses and income of the customer. Even so, many customers are not satisfied with their repayment plans.
Some of them have complained about Federated Funding Partners’ expensive charges. Others are not happy with their available payment options. The customers who complain about Federated Funding Partners fees have large debts. They say that the charges pile up, making it impossible for them to keep up with the payments.
Customers who are unhappy with the payment options feel Federated Funding Partners lack flexible payment options. If they miss a payment, it means an increase in the interest rate and an extra fee for late payment.
While these complaints are based on customers’ personal experiences, it is important to note that Federated Funding Partners is a private debt consolidation company. Therefore, the high-interest rate and late fees are to be expected. Based on the reviews, we can say that Federated Funding Partners is yet another debt consolidation company a bait and switch scheme, but is it true?
Are they yet another lending company that does not meet their customers’ expectations? Are they running a scam to trap them into paying high-interest rates and hidden fees?
In this article, we will examine the work of Federated Funding Partners. We will present the advantages and disadvantages of taking out personal loans with the company. It will help you decide if their debt consolidation service is right for you or not. If you have already chosen them to pay off the debt, we’d suggest you read the article first.
It will help you compare their service with other debt consolidation companies. The comparison is the only way for you to see which company will benefit you with their repayment plans.
If Federated Funding Partners does not seem like a viable option after you have the information, do not give up on debt relief altogether. Remember, there are other companies with better repayment plans than this one!
What Is Federated Funding Partners?
Federated Funding Partners is a company with A+ ratings on the Better Business Bureau (BBB) website. It shows that customers trust the company, but what appears to be a positive rating may not be true. There are complaints against Federated Funding Partners, and you should know the risks before making any decision.
First thing to know about a debt consolidation company is who owns it and how the process works. Since they will be your financial partners until you’ve paid off the debt, you must pick a trustworthy company. This is where Federated Funding Partner fails. No one knows who owns the company!
The Cayman Islands is where the owners have registered the company, and the owner appears to be a trust. Digging further, we found that a law firm is the trustee of Federated Funding Partners. However, there is no information on the beneficiaries. The anonymity is what concerns us. It makes us wonder, who exactly are these generous people willing to give out personal loans to unsuspecting customers?
It is a debt consolidation company with access to tons of money, yet the owners wish to remain anonymous. Federated Funding Partners’ unwillingness to be transparent is the first strike. Customers who are unsatisfied with the service do not have anyone to blame, as the owners remain anonymous.
The second strike is the complaints against the company for using bait-and-switch tactics. Although no hard evidence supports the claim, customers have come forward to share their experiences with Federated Funding Partners. They shared that the company offers low-interest rates at first and raises them only after debt consolidation. The new interest rates are impossible to pay, leaving them in worse financial trouble with a bad credit score.
If you were considering Federated Funding Partners for debt relief, our suggestion would be to reconsider. There are risks involved that may hit you financially and psychologically. Before you decide to get in touch with them, make sure you acquire all the necessary information about the Federated Funding Partners debt consolidation program.
Pros and Cons of Federated Funding Partners
Federated Funding Partners seems to have a limited number of pros. They help people pay their debts within 12 months, yet the cons outweigh the pros. Despite their many advertisements, Federated Funding Partners is not providing optimal service to their customers. With expensive rates, the company has many cons that overshow the pros.
Expensive Funding Option:
Federated Funding Partners is not the cheapest way to get funding for your debt consolidation. They ask for setup fees and monthly service charges and are known to increase interest rates after a customer signs up to consolidate debt.
The company does not hide some of its rates, like the one-time setup and monthly service fees. There are charges that a customer only finds out after a particular situation occurs. For example, if a customer fails to make a monthly payment, Federated Funding Partners would charge them a late fee and increase the interest rates.
High Debt, High Interest Rate:
It does not initially advertise that the interest rate will be high. Federated Funding Partners attract customers into signing up for their service with “low-interest rates.” Customers learn about the increased interest rates after partnering up with the company.
Beware of Federated Funding Partners’ scheming ways before considering them for debt consolidation. You should know that there are other cheaper and better companies willing to help you pay the debt. If you still want to consider Federated Funding Partners, keeping them as your last option is better.
Explore other companies’ debt consolidation programs and compare them with Federated Funding Partners. If you are satisfied with some other debt consolidation company, you should go with that!
Federated Funding Partners: How Does It Work?
Federated Funding Partners works by breaking down your debt and turning it into easy monthly payments. They claim to cover your debt with a low-interest repayment plan, but that’s not always the case. If you have a small debt, you can cover it with a low-interest rate. In contrast, the customers with higher debt will be trapped with a high-interest rate.
If you do not want to be a victim of Federated Funding Partners and their bait-and-switch scheme, you should not consider them for debt consolidation.
Additionally, the company does not come forward with the entire truth about its debt consolidation process. The initial free consultation assures the customer that they are in safe hands. It does not disclose the fine details about hidden charges. This is where most customers become victims of bait-and-switch schemes.
You can save yourself from future financial problems by removing Federated Funding Partners from your potential debt consolidation programs list. The company cannot be trusted, despite the alluring advertisements. You are better off finding a cheaper and trustworthy option!
How Would Federated Funding Partners Negotiate Your Debt?
Federated Funding Partners’ entire debt consolidation program depends on them negotiating with your credit card firms to lower the interest rates. This is something you can do yourself! However, Federated Funding Partners lure customers into thinking they can do a better job lowering the interest rates for you and convince you to pay $39.99 per month plus a one-time payment of $49.
Even if we count these charges as an investment, there is no assurance that Federated Funding Partners can negotiate successfully with your credit card company! In case they cannot negotiate loan terms, you’ll be paying the charges month after month, adding more to your debt.
Another issue with Federated Funding Partners negotiating with credit card companies is the time it takes to consolidate debt. Generally, it would be a few days, but sometimes it takes up to 24 months! They will charge you the monthly fee during this time without guaranteeing a successful negotiation.
Creditors That Do Not Work with Federated Funding Partners
Given their rate of failure in negotiation with credit card companies, Federated Funding Partners does not have the privilege to work with these companies:
- American Express
- Bank of America
If you have a debt with one of these creditors, you should not get in touch with this company. Federated Funding Partners has not listed these companies as their partners on the website. It means that the company will not negotiate your loan terms with them.
There are other debt consolidation companies on good terms with your creditors. You can research their programs and find the one that suits your income and expenses.
How to Cancel Federated Funding Partners Account?
Those who feel trapped in the Federated Funding Partners program will be happy to know that the company offers a step-by-step guide to canceling your account. Here are the steps:
Step 1: Log In using your Federated Funding Partners account credentials.
Step 2: Click on “My Account” and choose “Cancel Account.”
Step 3: You will be asked for confirmation. Once you confirm your choice, your Federated Funding Partners debt consolidation account will be terminated.
It’s a simple 3-step process to cancel your account and get on with life without further damaging your credit. However, the cancellation does not end your association with the company. In case of outstanding payments, Federated Funding Partners will be in touch until the debt is paid.
If you run into a problem during your account cancellation process, you should direct your questions to Federated Funding Partners customer service. They are available via phone call and email.
Note: You will lose all your saved documents and data after you cancel your account. Remember to download anything that you may need in the future.
Who Is in Affiliation with Federated Funding Partners?
Crown Street Funding is affiliated with Federated Funding Partners. Surprisingly, both companies have the same owner listed, which means they are the same. We can consider them a single entity, working under a trust with a law firm as the trustee.
If you were in touch with Crown Street Funding, you’d know the kind of service they provide. It should serve as a reminder for you not to get involved with Federated Funding Partners. Since the two companies work under a similar leadership, you should assume that the latter will also offer unsatisfactory services.
While searching for companies to consolidate debt, remember the affiliation between Federated Funding Partners and Crown Street Funding. If you encounter one or the other, you can skip them and find a reputable company.
Federated Funding Partners: BBB Reviews
Federated Funding Partners doesn’t have a Better Business Bureau account. The company has a Truspilot account. There are negative reviews for this company from customers that have been scammed before. So, if you even find only positive reviews about Federated Funding Partners online, make sure to read these as well:
FETSY Aug 13, 2021
[star rating = “1”]
Heads up everyone– The other reviews giving 5 stars are fake. This company will lure you in with a promise of an extremely low interest rate (2.9 in my case) for a personal loan; when you call there is no loan and they try to get you to sign up for some BS debt forgiveness program where you stop making payments to your creditors and start paying them. What a deal!
So while you credit score takes a major dive of several hundred points, they supposedly try to negotiate a reduced total payment with your creditors. There is no guarantee the creditors will go along or “forgive” your debt, and even if they did, any forgiven debt automatically becomes income to you at tax time. DON’T DO IT.
Is Federated Funding Partners a Scam?
Federated Funding Partners claim to genuinely care about paying off your debt, but their actions do not support their words. Some issues are, high service rates, high-interest rates, inability to negotiate with credit card companies, and withholding information from customers, etc. These are just a few aspects of Federated Funding Partners that make us think they are not the best company to work with.
You will find many complaints about their customer service, service charges, and the use of bait-and-switch methods to lure customers. Unfortunately, they are unable to consolidate debts for their customers successfully!
If you were to get involved with them, there’s a high chance you’ll be losing money rather than repaying your debt. It will affect your credit score negatively and stay on your credit report for a few years. The credit bureaus will collect the data and prevent you from signing up for a better debt consolidation plan with another company.
As long as you are associated with federatedfundingpartners.com, they will impact your credit report and make it impossible for you to get new credit lines during that association. The company is also known for collecting extra payments after the debt has been paid.
We have put forth the truth about the debt consolidation program of Federated Funding Partners. You should conduct your research prior to taking out a loan with this company. They come across as a legit lending company with a high-end debt relief program, but they may not be worth your money.
If debt consolidation is your last resort to paying off your debts, we recommend looking for reputable companies with more positive customer reviews than negative ones. This will protect you from making a costly mistake like signing up with Federated Funding Partners!