United Debt Services is a registered debt management service provider, which the State of Texas licenses, according to the United Debt Services' website. The Better Business Bureau assigns it a rating of B- as of July 2105, according to the BBB website.
After enrolling with UDS, the customer sets up a special-purpose savings account at a third-party institution to which he makes automatic monthly payments from his regular checking account, explains UDS. The funds accrue in this account for use in paying the customer's debt and the UDS fees. UDS works with the customer's creditors to negotiate debt reduction that allows the customer to achieve a debt-free status within 36 months or less. UDS approaches each creditor with a settlement offer, which is typically 30 percent of the total amount owed. If the creditor agrees, the customer pays the creditor with funds from his special-purpose savings account.