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Minnesota Sues TaxMasters Claiming Fraud and Deception

Minnesotta Attorney General Lori Swanson today file suit against TaxMasters, a tax debt relief company.

The suit allegedly states that TaxMasters used deceptive and misleading advertisements and commercials to attract consumers into large up-front fees for debt relief services, paying upwards of $8,000.

The suit is said to claim the TaxMasters salespeople encouraged consumers to pay the steep fees on credit cards or drain savings accounts.

At the heart of this matter is the problematic reality that the majority of consumers that seek tax debt relief services receive little to no help.

Just this year California went after another tax debt relief company, Roni Deutch for what they said was her “heartless scam.”

Minnesota Sues TaxMasters Claiming Fraud and Deception
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Damon Day

    Ya, I have recently seen that their new Christmas TV commercial talking about how owing taxes will ruin your Christmas. That may be true, but from everything I have read about these guys and others like them, calling them for help will likely prevent you from having a Christmas at all.

  • Debt Whistleblower

    It’s good to see someone going after these companies now. They are just as bad as many of the debt-relief companies.

    I inquired about a job at one of these tax-relief firms years ago that had a national presence. They claimed their salesmen were making upwards of $200,000 a year. It was all about having a one-call close with the customer; even if they didn’t have a dime to their name, I was told to get the customer to put it on their credit card. I said, “If they have no money, how are they going to put it on their credit card?” The man interviewing me said, “That’s not our problem. Your job is just to get our fees.” I walked out; no regrets there.

  • http://www.EliminateCreditDebt.com Debt Whistleblower

    It’s good to see someone going after these companies now. They are just as bad as many of the debt-relief companies.

    I inquired about a job at one of these tax-relief firms years ago that had a national presence. They claimed their salesmen were making upwards of $200,000 a year. It was all about having a one-call close with the customer; even if they didn’t have a dime to their name, I was told to get the customer to put it on their credit card. I said, “If they have no money, how are they going to put it on their credit card?” The man interviewing me said, “That’s not our problem. Your job is just to get our fees.” I walked out; no regrets there.

    • http://DamonDay.com Damon Day

      Ya, I have recently seen that their new Christmas TV commercial talking about how owing taxes will ruin your Christmas. That may be true, but from everything I have read about these guys and others like them, calling them for help will likely prevent you from having a Christmas at all.

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