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Debt Relief Industry

Freedom Debt Relief, Chase Bank, & Nonprofit Credit Counseling

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In a recent story that a reader brought to my attention, Freedom Debt Relief did a good thing and fully refunded a disgruntled California couple the $3,290 fee they paid Freedom Debt Relief for advanced fee debt settlement services after they got sued and Chase Bank said they would not work with Freedom. A double pat on the back to ... Read More »

Inside an IRS Rejection of a Credit Counseling Organization

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In an effort to help people better understand what issues create a problem for the IRS in approving a non-profit credit counseling organization I decided to do a bit of research into recent rejection letters issued and made public. I owe a big hat tip to the friendly people at the IRS for their help in this article. Problems Faced ... Read More »

The Consumer Law Group, American Credit Counselors and Michael Metzner Sued in Georgia

A reader brought to my attention a class action suit filed in Georgia and now moved to Federal Court. The case is Guzman v. The Consumer Law Group, American Credit Counselors, and Michael Metzner. The complaint is another in a series of complaints we’ve seen where a debt relief company is accused of violating the tough and limited fees imposed ... Read More »

Wisconsin Busy Going After Unlicensed Debt Relief Companies

The State of Wisconsin is NOT a place to sell debt relief services if you are not licensed by the State of Wisconsin, Department of Financial Institutions, Division of Banking. In the past week the division has gone after Everest Debt Solutions, FDN Solutions, Next Step Resolution, NCD, National Center of Debt, and Asset Retention Group. Here are the most ... Read More »

Steven Vanderhoof Has a Bad Day

Remember when the Credit Exchange and Steven Vanderhoof were flying high and the world was at their feet. Apparently it’s been a bad couple of weeks for Steven Vanderhoof. A tipster (send in your tips here) just sent in a couple of final judgments against him from his Credit Exchange operation. Seems that he’s just secured a $116,218 judgement and ... Read More »

UK Debt Settlement Firm DebtDr Goes Bust Taking Client Funds With It

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A UK based debt settlement company known as the DebtDr has gone bust and took £600,000 of client funds with it. The company was actually Hermes Financial Solutions, Ltd and was run by Jeremy Hockley. The company took client funds and held them on deposit until settlements were reached with creditors. Unfortunately this company ceased trading and the money went ... Read More »

Legal Helpers Debt Resolution and Rise Above Debt Relief Named in Suit

“Dear Steve, don’t you ever get tired of writing about lawsuits that involve Legal Helpers Debt Resolution?” “Yes!” A lawsuit filed against Legal Helpers Debt Resolution, Thomas Macey, Jeffrey Aleman, Jeffrey Hyslip, Jason Searns, Rise Above Debt Relief, Jeffrey Dumas, and Jeff Boulton in Ohio was recently moved to Federal Court. The case is Carl Burks & Danielle Burks against ... Read More »

Federal Reserve Report Digs Into Consumer Debt

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A new Federal Reserve report is out that describes the status of household debt and credit developments in the third quarter of 2011. The report shows the total amount of indebtedness is still mostly contracting. The number of credit card accounts is still down to near decade low levels. Car loans are slightly increasing while new mortgages continue to dwindle. ... Read More »

First Stone Credit Counseling Files Suit Against IRS to Retain Tax Status

A tipster (send in your tips here) sent me notice that First Stone Credit Counseling, a Texas non-profit company, filed suit against the Internal Revenue Service on November 18, 2011 in an effort to fight the revocation of their tax status. According to the suit, First Stone Credit Counseling has already received a notice of revocation of their tax status ... Read More »

Credit Card Debt Consolidation Paying People to Join Debt Management and Debt Settlement

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A reader sent me in a questions about a recent press release put out by Credit Card Debt Consolidation. The reader said “Don’t the UDMSA regulations and a number of states prohibit incentives and rebates for debt relief programs?” I’ll let the debt relief industry readers answer that one. I did notice their home page has the BBB logo on ... Read More »

Everest Debt Solutions / FDN Solutions – Nailed by Wisconsin

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The State of Wisconsin is reporting a recent action against Everest Debt Solutions and FDN Solutions. I must disclose that Everest Debt Solutions has a unique place in my experience in reporting on the debt relief industry. Without a doubt, Everest Debt Solutions is in the top three of the strangest thread of responses a company has made in response ... Read More »

Loan Compliance Advisory Group Says Someone is Pretending to be Them

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I received the following statement from Joseph Bisogno at Loan Compliance Advisory Group and received his permission to publish it. Get Out of Debt Guy – Twitter, G+, Facebook Steve My group is not a debt relief type company, however several of my clients that are Victims of Discriminatory, Deceptive, Predatory Lending and Unfair Deceptive Acts and Practices on residential ... Read More »

Metropolitan Financial Management Corporation, dba Auriton Solutions, Loses 501(c)3

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I just received an automatic alert about recent IRS 501(c)3 revocations. According to the IRS, Metropolitan Financial Management Corporation which was doing business as Auriton Solutions had their charitable 501(c)3 tax status revoked in October 2011. – Source Their last public tax return listed Tiffany Worley as president through 7-2010 and then replaced with Bill Shell as interim CEO. Something ... Read More »

A Paper Worth Reading: Robo-Signing and Lack of Proof in Debt Buyer Cases

Here is a great research paper worth reading. It certainly helps to focus the robo-signing issues we’ve all heard about with mortgages to a problem that debt relief providers will need to deal with. For a while we’ve talked about the issue of a debt relief provider that either sets up a payment plan or assists a consumer to settle ... Read More »

Credit Card Volume Shows Some Life

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There is an excellent post by Harry Terris from Collections and Credit Risk about recent consumer spending trends you should read. Now, growth rates in credit card purchases, at 8.8% from the previous year in the third quarter, and durables spending, at 5.6%, have leapfrogged overall consumption growth. Cardholders have managed this without additional borrowing. The contraction in total credit ... Read More »

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