ClearOne Advantage Debt Settlement Review: Fees, Credit Impact, and Complaints

A ClearOne Advantage debt settlement review comes down to three things: the company has operated since 2008 and complies with federal fee rules, its settlement charges of 18% to 29% of enrolled debt sit slightly above the industry’s typical 15% to 25% range, and the program carries the standard debt-settlement risks of credit damage, possible lawsuits, and taxable forgiven balances. For consumers with at least $10,000 in unsecured debt who cannot keep up with minimum payments, it is a legitimate option. It is not a cheap or risk-free one.

What You Pay

ClearOne charges a settlement fee between 18% and 29% of the total debt enrolled in the program, not just the portion that gets settled. NerdWallet has noted this range runs higher than the industry average of 15% to 25%.¹ The company does not publish specific percentages on its website and directs prospective clients to call for a personalized quote.²

There is no enrollment fee. The dedicated savings account you fund during the program carries a $17 monthly maintenance fee. Because you stop paying creditors once enrolled, interest and late fees continue to accrue on each debt until it is settled; those charges are owed to the creditors, not ClearOne, but they raise the real cost of the process.¹

Fees are collected per debt and only after you approve the settlement in writing and at least one payment goes to the creditor. That timing is required by the Federal Trade Commission’s Telemarketing Sales Rule, which bans advance fees in debt relief.³

Who Can Enroll

You need at least $10,000 in qualifying unsecured debt to join the program, and each individual account must carry a balance of at least $450.¹² Eligible debts include credit cards, personal loans, medical bills, and some private student loans.

ClearOne does not handle mortgages or auto loans, federal student loans, or IRS and tax debt. Services are unavailable in Illinois and Oregon; the company operates in the other 48 states.¹

How the Program Works

After a free consultation, a ClearOne specialist builds a monthly payment plan that the company says is typically up to 40% lower than what you had been paying across your existing debts.⁴ You then stop paying creditors directly and begin depositing money into an FDIC-insured savings account that you own and control.

As the balance grows, ClearOne’s negotiators approach creditors with lump-sum offers. The leverage comes from the missed payments: a creditor facing the prospect of collecting nothing may accept less than the full balance.¹ Every offer must be reviewed and approved by you before any money leaves the account.⁴

ClearOne reports an average program length of 24 to 51 months, depending on total enrolled debt and how consistently you fund the account. The company advertises average savings of about 45% of the enrolled balance before fees, and estimates net savings of roughly 30% after fees are subtracted.⁵¹

What It Does to Your Credit and Finances

The program’s single biggest cost is credit damage. Because enrollees stop paying their creditors, accounts fall into delinquency. Those delinquencies and the eventual “settled for less than full balance” notations stay on a credit report for seven years.¹

Other risks follow from the same dynamic:

Creditors and debt collectors can sue for the full balance while payments are paused. ClearOne itself warns that enrollment “may result in the consumer being subject to collections or being sued.”⁶
Balances grow during negotiation because interest and late fees keep accruing. If the program is not completed, you can end up owing more than when you started.⁶
Forgiven debt over $600 may be treated as taxable income. Creditors can issue a Form 1099-C for the cancelled amount, and you would owe income tax on it unless you qualify for an insolvency exemption.¹
Nothing is guaranteed. Some creditors refuse to negotiate, and any debt that is not settled leaves you responsible for the original balance.⁶

What Customers Say

ClearOne’s public ratings skew positive. As of mid-2026, the company holds a 4.8 out of 5 average on Trustpilot across more than 10,600 reviews, with recurring praise for knowledgeable specialists, a smooth enrollment, and programs that finish ahead of schedule.²⁷

Complaints follow a few patterns. Some clients report difficulty reaching a live representative after enrollment. Others say they were confused about when and how fees applied, which tracks with the company’s choice not to publish specific percentages online. Credit damage, though disclosed up front, still catches some enrollees off guard once delinquencies hit their reports. A smaller group reports settlement savings well below the advertised average, with some citing reductions of only 10% to 15%.²

Regulatory Standing and Lawsuits

The FTC’s Telemarketing Sales Rule, amended in 2010 to address abuses by for-profit debt relief companies, bars collecting any fee until a debt has been renegotiated, the consumer has agreed to the settlement in writing, and at least one payment has gone to the creditor under the new terms. The rule also requires upfront disclosure of total fees, estimated timelines, the minimum savings threshold before an offer is made, and the risks of credit damage, lawsuits, and accrued interest.³ ClearOne’s per-debt, post-settlement fee structure aligns with those rules, and no FTC enforcement actions against the company appear in available records as of mid-2026.²

The company does face a pending consumer lawsuit. In April 2026, a proposed class action was filed in the U.S. District Court for the District of Maryland. Bland v. ClearOne Advantage LLC (Case No. 1:26-cv-01375) alleges that the company violated the Telephone Consumer Protection Act by contacting people on the National Do Not Call Registry and misrepresenting itself during those calls. The case was assigned to Judge Matthew J. Maddox and remained in its early stages at the time of filing, with no reported rulings.⁸

ClearOne is accredited by the Association for Consumer Debt Relief, formerly the American Fair Credit Council, and requires its specialists to be certified by the International Association of Professional Debt Arbitrators.⁴ Headquartered in Baltimore with a second office in Tempe, Arizona, the company was co-founded in 2008 by CEO Tomas Gordon.⁹

1
NerdWallet. ClearOne Advantage Debt Settlement Review
2
Finder. ClearOne Advantage Review
3
Federal Trade Commission. Debt Relief Services and the Telemarketing Sales Rule
4
ClearOne Advantage. How It Works
5
ClearOne Advantage. New York Debt Relief
6
ClearOne Advantage. Debt Settlement Pros and Cons
7
Better Business Bureau. ClearOne Advantage BBB Profile
8
Law360. Bland v. ClearOne Advantage LLC
9
ClearOne Advantage. About Us