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Sued or Sanctioned

Court Slams the Door on Ring of Debt Relief Providers Violating Telemarketing Sales Rules

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At the request of the Federal Trade Commission, a federal district court in Chicago has shut down an international robocall ring that allegedly conned consumers out of $995 each with false promises that it would reduce their credit card interest rates, but provided little or nothing in return. As part of its crackdown on frauds that seek to take advantage ... Read More »

    Ohio Sues National Homeownership Assistance Foundation, American Debt Relief Foundation, and VA Payment Reduction Notification

    OH Complaints

    According to the Dayton Daily News and Randy Tucker, Ohio Attorney General Richard Cordray is going after some bad actor mortgage modification companies. Cordray is seeking civil penalties and restitution for homeowners who paid an average $2,500 up front to have their mortgages modified to reduce payments. Three interrelated companies are at the center of the most recent spate of ... Read More »

      WV AG Scores Refunds From Discount Debt Solutions, Debt Settlement Solutions, Accelerated Financial Centers, Heritage Debt Relief

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      On October 26, 2010, West Virginia Attorney General Darrell McGraw announced the recovery of $64,737.08 for 48 West Virginia consumers in cases against three debt negotiation and settlement companies that charged illegal fees. These settlements bring the total of successful cases brought by the Attorney General’s Office since 2006 against deceptive and abusive practices by debt relief providers to 31, ... Read More »

        Advanced Client Services Says It’s Not Responsible for Johnson Law Group Failure. Johnson Law Group Not a Law Firm.

        Recently I wrote about the Johnson Law Group Nevada and the involuntary of the company. In the story I had said the failure of Johnson Law Group was because Advanced Client Solutions pulled the plug. I have since received some alleged information that provides a different version of things. Along with the email was an attachment. The deposition of Attorney ... Read More »

          Vortex Debt Group Sued For Just About Everything

          Vortex Debt Group out of Florida is a name familiar to me. I’ve written about them before, here. Yesterday Vortex was sued by Terry Rudd in a class action suit. It seems that Vortex really wanted to control the client and allegedly left the client disadvantaged. “The Vortex representative hid from plaintiff the fact that the agreement purported to contain ... Read More »

            Consumer Law Group Bails Out of North Carolina After Attorney Model Fails

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            WRAL television in Raleigh, NC is reporting Consumer Law Group of Florida, who was recently sued by the NC Attorney General, has agreed to pull out of North Carolina. Under North Carolina law, it’s illegal to charge an upfront fee to help negotiate debts, also called debt adjusting or debt settlement. Some companies promising debt relief, including Consumer Law Group, ... Read More »

              CreditAnswers Sued by Employee for Unpaid Wages

              In what is looking like an ongoing wave of suits against debt settlement companies by employees for unpaid wages, the latest to be sued was Credit Answers in Texas. Other debt relief companies sued include Lloyd Ward Law Firm, ABC Debt Relief, and Credit Solutions of America. Defendant is a debt settlement company doing business in Texas. Plaintiff was employed ... Read More »

                Johnson Law Group Nevada Forced Into Bankruptcy

                The Johnson Law Group in Nevada previously was forced into an involuntary bankruptcy on June29, 2010. Just recently they have finally submitted financial statements and details which help to give us a clearer picture of what is going on. According to a document filed on July of 2010 the story of what happened to the Johnson Law Group is reveled. ... Read More »

                  Debt Relief Attorney Settles With New Jersey. So Does Paramount Debt Settlement USA, New Day Financial Solutions, American Credit Repair and Settlement, and American Financial Advocacy Council.

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                  Attorney General Paula T. Dow announced October 18, 2010 that the owner of several New Jersey loan modification companies has agreed to pay the state $805,000 and stay out of the foreclosure rescue business to resolve allegations he defrauded struggling homeowners who sought help in staving off foreclosure. Defendant Stephen Pasch of Greenbrook Township, Somerset County, agreed to a judgment ... Read More »

                    Promoters of Debt Elimination and Tax Relief Scheme Get Hard Jail Time

                    A federal court in Pensacola, Fla., has sentenced three of nine promoters of a fraudulent tax-and-debt-elimination scheme to prison terms for their roles in tax fraud, wire fraud and money laundering, the Justice Department and Internal Revenue Service (IRS) announced today. Four others were sentenced in July to prison terms ranging from 5 to 12 years. The remaining two will ... Read More »

                      Florida Debt Relief Scammer Appears Pale in Jail Uniform

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                        Is Tax Relief the Next Debt Relief Scam to Watch Out For? American Tax Relief Under Fire.

                        In the news again is yet another tax relief company to find itself in hot water. American Tax Relief of Beverly Hills, California made claims that they could settle tax debt for pennies on the dollar. As big and scary as the Internal Revenue Service is, many jumped at the opportunity to make their debt somehow painlessly and magically disappear. ... Read More »

                          Money Management International Settles Case for $6.5 Million to Avoid Allegations of Improper Credit Repair Services

                          I just had a long conversation with an inside party that told me about a massive settlement by the credit counseling company Money Management International to avoid further involvement in a suit that alleged they engaged in improper credit repair services through their debt management plans. This case seems to clearly go hand-in-hand with a recent ruling that could expose ... Read More »

                            Consumer Law Group Slammed By North Carolina. Fees, Not Help.

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                            The Consumer Law Group should be barred from illegally collecting money to settle debts and made to pay refunds to more than 3,000 North Carolinians, according to a lawsuit filed by Attorney General Roy Cooper. “Taking advantage of consumers who are trying to pay off their bills is wrong, and it’s also against the law,” Cooper said. “Never agree to ... Read More »

                              Victims of Bogus Debt Negotiation Scam to Receive $104 Refund Payments

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                              A complaint issued by the FTC in 2004 has finally paid some limited fruit to consumer caught in the scheme. The original complaint can be found here. An administrator working for the Federal Trade Commission is mailing checks to 360 consumers who were victims of Innovative Systems Technology doing business as Briggs & Baker, an operation that claimed it could ... Read More »

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