Key Takeaways
- Oregon ordered New Era Debt Solutions to pay a $50,000 penalty for operating without proper state registration and collecting fees from consumers without a license
- The company was required to refund $22,265.21 to Oregon clients whose fees were collected while New Era was not legally authorized to operate in the state
- The company violated the Oregon Debt Management Service Provider Law, as confirmed by the Oregon Division of Financial Regulation
- Chicago consumers harmed by New Era Debt Solutions have legal rights under federal and Illinois consumer protection laws
- Justice Consumer Law offers a free consultation with a no-cost guarantee
New Era Debt Solutions has marketed itself as a trustworthy, people-friendly debt settlement company since 1999. Oregon’s Division of Financial Regulation found otherwise.
In April 2021, Oregon filed a claim against New Era Debt Solutions for operating without proper state registration and collecting fees from Oregon consumers without authorization. The state ordered the company to cease operations in Oregon, pay a $50,000 penalty, and refund $22,265.21 in fees to affected consumers.
New Era Debt Solutions was ordered by the state of Oregon to stop operating, pay regulatory penalties, and return money to consumers it had charged without being legally licensed to do so. Consumers in other states may still pursue individual claims for damages under federal and Illinois laws.
The State Action Against New Era Debt Solutions
- Case: Oregon Division of Financial Regulation v. New Era Debt Solutions Action Date: April 2021
- Violation: Oregon Debt Management Service Provider Law
- Penalty: $50,000 total ($40,000 suspended conditionally)
- Consumer Refunds Required: $22,265.21 returned to Oregon clients
- Current Status: New Era no longer operates in Oregon, Iowa, or Maine
How New Era Debt Solutions Affected Consumers:
1. Unlicensed State Operations
New Era Debt Solutions operated in Oregon without registering with the state as required by the Oregon Debt Management Service Provider Law. During this time, the company collected fees from Oregon consumers while not legally authorized to provide debt relief services in that state.
Oregon’s Division of Financial Regulation conducted an investigation, confirmed the violation, and ordered the company to immediately cease operations and return all fees collected from consumers.
2. Excessive Fee Collection
According to Fortune’s independently verified review, Oregon’s investigation found that New Era Debt Solutions violated state law by collecting excessive fees from customers. Consumers who paid those fees were entitled to refunds under the state order.
The company was required to refund $22,265.21 to affected Oregon clients within 18 months as a direct condition of the regulatory settlement.
3. Settlement Promises vs. Reality
According to a verified BBB complaint, one consumer reported that New Era promised around 40 percent repayment of enrolled debt. That same consumer ended up repaying approximately 70 percent, had wages garnished, paid one creditor back in full at 100 percent plus accrued interest, and attended multiple court visits without adequate preparation.
New Era’s own website acknowledges that 6 percent of clients face legal actions from creditors during enrollment, and 1 percent face significant consequences, including liens or wage garnishments.
4. Undisclosed Program Risks
New Era Debt Solutions requires consumers to stop all payments to creditors upon enrollment, which causes immediate and lasting credit damage. The company operates through an affiliate law firm called the Consumer First Legal Network in 27 states, a relationship that some consumers report was not clearly explained before they enrolled.
Forgiven debt above $600 is also reportable as taxable income via Form 1099-C, a consequence that some consumers report was not prominently discussed before signing up.
Consumer Complaints Against New Era Debt Solutions
At Justice Consumer Law, we see clients affected by New Era Debt Solutions’ practices:
Common Complaints:
- Promised 40 percent repayment but ended up paying 70 percent, including accrued interest and fees
- Wages garnished by creditors who filed suit during the active enrollment period
- Attended court proceedings without adequate preparation or legal support
- Credit scores were severely damaged after stopping all creditor payments upon enrollment
- Unexpected tax liability from Form 1099-C issued on settled debt amounts above $600
Red Flags Consumers Report About New Era Debt Solutions:
- Operated in Oregon without proper state registration, confirmed by state regulators
- Collected fees from consumers while not legally licensed to do so in that state
- No guarantee any creditor will agree to settle enrolled accounts at any amount
- The program operates through the affiliate law firm CFLN in 27 states, not directly by New Era
- Creditors may file lawsuits, place liens, or garnish wages during active enrollment
- Consumers who exit the program early may end up with higher balances than when they started
What You Can Do If New Era Debt Solutions Hurt You
Legal Claims and When
You may be entitled to compensation if New Era Debt Solutions:
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- Collected fees from you while not properly licensed to operate in your state
- Promised specific repayment percentages that were not achieved in your program
- Did not clearly disclose that creditors could sue, garnish wages, or place liens during enrollment
- Damaged your credit by advising you to stop all payments without fully explaining the consequences
- Failed to clearly explain the role of the affiliate law firm, CFLN, before you enrolled
Federal and State Consumer Protection Laws
Federal Consumer Protection Laws:
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- Consumers may have rights under federal consumer protection statutes when material information was not disclosed before enrollment
- These rights may include actual damages for all financial losses experienced during or after the program
- Attorney fees may be recoverable depending on the nature of your individual claim
Illinois Consumer Fraud Act:
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- Actual damages plus attorney fees paid by the responsible company
- Enhanced penalties for misleading practices targeting financially vulnerable consumers
Better Alternatives to New Era Debt Solutions
| Alternative | Cost | Credit Impact | Success Rate | Time to Complete |
| Nonprofit Credit Counseling | Free to $50 per month | Neutral to Positive | High | 3 to 5 years |
| Direct Creditor Negotiation | $0 | Varies | Moderate to High | 6 to 18 months |
| Chapter 7 Bankruptcy | $1,500 to $3,000 | Negative initially, recovers faster | Very High | 4 to 6 months |
| New Era Debt Solutions | 15 to 25% of debt | Very Negative | Not guaranteed | 24 to 48 months |
1. Nonprofit Credit Counseling
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- Free or low-cost services with no credit damage required
- Debt management plans that preserve your credit score
- Find help: U.S. Trustee Approved Counselors
2. Direct Creditor Negotiation
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- Contact creditors’ hardship departments yourself at no cost
- No fees paid to any third-party settlement company
- Creditors often prefer working directly with consumers over extended collections
3. Legal Consultation
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- Bankruptcy may cost far less than years of settlement fees and potential wage garnishment
- Provides immediate legal protection from all creditor collection and lawsuit activity
Why Justice Consumer Law for New Era Debt Solutions in Chicago?
Exclusive Consumer Protection Focus: We only handle cases against companies like New Era Debt Solutions that are accused of violating consumer rights, including operating without proper state authorization.
No Risk to You: Our no-cost guarantee means you pay nothing unless we recover money from New Era Debt Solutions or other companies that harmed you.
Experience with Debt Relief Cases: We understand the specific tactics companies like New Era Debt Solutions use, including unlicensed state operations, settlement percentage promises that are not achieved, and undisclosed affiliate arrangements.
Maximum Recovery: We fight to recover all damages you may be entitled to under federal and Illinois consumer protection laws.
Take Action Against New Era Debt Solutions
Oregon’s regulatory action confirms that New Era Debt Solutions can be held accountable when its practices fall short of legal requirements. If the company’s conduct harmed you, whether through unlicensed operations, unmet settlement promises, or undisclosed program risks, do not let them get away with it.
Contact Justice Consumer Law today:
- Free consultation to evaluate your New Era Debt Solutions case
- No attorney fees unless we recover money for you
- Experienced representation against debt relief companies that violate consumer rights
Remember: Evidence can disappear, and there are time limits on legal claims against companies like New Era Debt Solutions.
FAQs
Can I still take legal action against New Era Debt Solutions after the Oregon penalty?
Yes. State regulatory actions do not prevent individual consumer lawsuits. The Oregon findings help establish a pattern of conduct that attorneys can use to support your claim.
What if I signed New Era Debt Solutions’ contract with an arbitration clause?
Many arbitration clauses in debt relief contracts may be unenforceable under federal and state consumer protection laws. Have an attorney review your agreement immediately before assuming it blocks your claim.
How long do I have to take legal action against New Era Debt Solutions?
Illinois Consumer Fraud Act claims carry a three-year limit. Other federal claims vary. Contact an attorney immediately to protect your rights before any deadline passes.
What evidence do I need for a New Era Debt Solutions case?
Your enrollment contract, all written disclosures, payment records, credit reports showing program-period damage, any Form 1099-C issued, and documentation of any creditor lawsuits or wage garnishments during enrollment.
How does Justice Consumer Law’s no-cost guarantee work?
You pay no attorney fees unless we win. When we win, the responsible party pays our legal fees. Justice costs you nothing out of pocket.