Debt Relief Industry

FTC to Pursue Other Options in Debt Settlement Case Loss in Texas

Under the heading of “wow that was fast,” I’ve already received a response from the Federal Trade Commission to their recent loss in a Texas Federal Court in their case filed against Freedom Financial Processing, Debt Professionals of America, Debt Consultants of America, Robert Creel, Corey Butcher, and Nikki Creel.

In that case, which you can read more about here and here, the FTC claimed the debt settlement company was making deceptive and misleading consumer claims.

The Jude ruled against the Federal Trade Commission and felt that performance claims only need to be based on consumers who completed the debt settlement program, and not based upon the experience of all consumers.

You can read the courts ruling against the FTC at Court Issues Unfavorable Decision to FTC in Debt Settlement Performance Claims Suit.

According to Jessica Rich, Director of the Division of Financial Practices at the Federal Trade Commission, “We’re disappointed in the Judge’s ruling, and continue to believe that the defendants’ conduct is deceptive. We are considering all our options.”

Clearly this case is not over yet. More to come I’m sure.


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See also  Big News in the Debt Settlement World. Vermont Kicks Debt Settlement USA and Financial Freedom of America Ass.

About the author

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.


  • “Before Financial Freedom, I had tried on my own to consolidate my credit card debt. The combined payments were more than any other bill I had (approximately half my monthly income at that point and twice my rent). None of my credit card companies would take all the debt and none (of my credit card companies) would lower the rates. I was desperate. I heard about FFP on the radio and figured I’d give it a shot (better for my credit and cheaper than bankruptcy). The FFP staff was very helpful and was able to give me a clear understanding of the process. In a year and a half, I am credit card debt free. The process had its ups and downs, but just making one reasonable payment a month instead of three ridiculous ones, and then actually seeing the savings through the settlement process, was well worth it. FFP is an option that should be seriously considered. Thank you FFP.”- Jacques, Thibodaux, LA
    331. Prohibition of debt adjusting when conducted for profit A. Except as otherwise provided herein, no person shall engage in the business of debt adjusting. B. As used in this section, the following words and phrases shall have the following meaning, unless the context clearly indicates otherwise: (1) “Person” means an individual, corporation, partnership, trust, firm, association or other legal entity.
    “When I heard about FFP on the radio, I was behind on my credit cards and couldn’t afford the payments. It was getting worse and worse. Due to my divorce, I was getting further and further behind. I was struggling to make the monthly payments. At that time I felt I needed to carry the credit card debt just to live day to day. This was a problem that I needed to have taken care of. When I found out about FFP and that I could get a better payment arrangement with a better time frame for payoff, I was very excited. When the first settlement came through, there was a weight lifted off my shoulders and I knew this program would work. I had completed the program within 30 months. FFP is the perfect program for people in my situation who cannot do lump sum settlements and who don’t have time to deal with the creditors. I would recommend FFP to my friends and family.”- Jeff, Strasburg, CO

    not listed as a provider
    “I got over my head in debt between job loss and things like that. I couldn’t make the payments anymore and I had to find an alternative to bankruptcy because I didn’t want to do that. I tried FFP and it worked. I heard the commercial on the radio and I thought I’d call to see what it was all about. I made the phone call and what they had to say sounded pretty good, so I signed up. Debt made me feel like I was just drowning and something was out of control I couldn’t get a handle on at all and it just kept getting worse. FFP’s customer service team was supportive – any questions I ever had, I called and asked and they answered. They told me to stick to my guns and that’s what we did and we came through. They did an excellent job. I was very surprised at the percentages they got on my final account. Now I have relief, which is what I was hoping it would be like – I don’t have to worry about my debt anymore. This process teaches you a little bit of a lesson. Afterwards, you look more in depth into things, not just at the surface – you look at the long term effects.”- Craig, Fairview, WV
    §61-10-23. Debt pooling; definition; offenses; penalty; jurisdiction; pleading and proof.”Debt pooling” shall mean the rendering in any manner of advice or services of any and every kind in the establishment or operation of a plan pursuant to which a debtor would deposit or does deposit funds for the purpose of distributing such funds among his creditors. It shall be unlawful for any person to solicit in any manner a debt pooling.
     “I think at first I was a little tentative because the process took a little while. When you want something to end as soon as possible, it can become a little nerve racking. I can’t say anything better about the people at FFP, you did exactly what you advertised. I think everyone was upfront with me and everything happened just the way they said it would. Everyone worked hard to get me the lowest rates that they could.”- Gerald, Akron, OH
    (C)(1) “Credit services organization” means any person that, in return for the payment of money or other valuable consideration readily convertible into money for the following services, sells, provides, or performs, or represents that the person can or will sell, provide, or perform, one or more of the following services:(f) A budget and debt counseling service, as defined in division (D) of section 2716.03 of the Revised Code, provided that the service is a nonprofit organization exempt from taxation under section 501(c)(3) of the “Internal Revenue Code of 1986,” 100 Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service is in compliance with Chapter 4710. of the Revised Code;

  • Corey, in case you missed it, there are comments waiting for you over on this post.

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