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Nonprofit Credit Counselors Charged With Laundering Drug Money Get Prison


In 2013 the U.S. Government brought charges against individuals associated with a credit counseling operation. At that time the U.S. District Attorney of Kansas said, “Two people have been charged with laundering cash from marijuana trafficking through a non-profit credit counseling agency in Kansas City, U.S. Attorney Barry Grissom said today. Mendy Read-Forbes, 37, Platte City, Mo., and Laura Shoop, ... Read More »

    NC Senator Michael Lee Article Ruffled Some Debt Collection Feathers

    Photo Credit: ElfDomx

    Yesterday I published this article about proposed changes to pursing debtors in North Carolina over purchased debt. That would have been the story, done and dusted. But today I awoke to find InsideARM, an accounts receivable trade publication leveled some objections at my opinion piece. InsideARM said, “Rhode calls Lee’s bill, “idiotic,” and “ill-advised, ill-conceived and unwarranted.” Other than potentially ... Read More »

      Court Halts Mortgage Relief Operation that Targeted Homeowners Facing Foreclosure

      Woman in home office with computer and paperwork frowning

      Some People Lost Their Homes: Paid Defendants Instead of Making Mortgage Payments At the Federal Trade Commission’s request, a federal court halted a sham operation that allegedly told financially distressed homeowners it would help get their mortgages modified, but instead effectively stole their mortgage payments, leading some to foreclosure and bankruptcy. The FTC seeks to permanently stop the scheme and ... Read More »

        NC Senator Michael Lee of Wilmington Might Be a Debt Collection Idiot

        Screen Shot 2015-04-29 at 5.39.39 PM

        North Carolina is trying to pass legislation which will roll back protections for consumers who have bad debt purchased by debt buyers. Senator Michael Lee from Wilmington, North Carolina is the sponsor of S.B. 511, titled Proof Required for Debt/Fees, which efforts to rollback the requirement the bad debt buyer must have detailed information about where and when the debt ... Read More »

          Less Demand for Debt Relief Help in 2015


          The latest bankruptcy filing statistics are out from the United States Courts and add support for a continued softness in the demand for debt relief help. Bankruptcy filings fell 12 percent when compared to the same period last year and the downward trend continues. In March, 2015 Chapter 7 bankruptcies accounted for 64 percent of filings while Chapter 13 filings ... Read More »

            Did World Law Debt and Orion Processing Really File Bankruptcy?


            Under the heading of ironic debt relief outcomes, one of the major debt settlement players, World Law Debt and Orion Processing, recently filed a Chapter 11 bankruptcy proceeding. I guess their debt issues were beyond settling. This matter came to light when a reader asked me to look at a notice they received in the mail. According to court documents, ... Read More »

              Hummingbird Credit Counseling Sues the United States of America


              Hummingbird Credit Counseling and Education has filed suit against Attorney General Eric Holder, Department of Justice, and Executive Office of United States Trustee. This suit asks for a declaratory judgment and injunctive relief. This case caught my attention because it’s not often you see a credit counseling company suing the USA and it appears this is yet another debt relief ... Read More »

                Can You Discharge Private Student Loans in Bankruptcy?


                There’s a big misconception that private student loans can never be discharged in bankruptcy. People have repeated that statement so often they believe it to be a fact. The only problem is it’s not quite true. Some private student loans are clearly eligible to be wiped away in a consumer bankruptcy. Even in a Chapter 7 bankruptcy, it takes only ... Read More »

                  Federal Court Rules Affiliate Marketing Network and its Parent Company Must Turn Over $16 Million They Received From Deceptive Marketing Scheme


                  FTC and State of Connecticut Charged LeadClick Media with Operating A Network That Used Fake News Sites to Promote Diet Pills A U.S. district court has ruled that LeadClick Media, an affiliate marketing network, and its parent company, CoreLogic, Inc., must turn over $ 16 million in ill-gotten gains they received from a deceptive marketing scheme that sold purported weight-loss ... Read More »

                    Today in Debt Relief History – Consumer Affairs Law Center


                    Frankly I get sick of writing about lawsuits in the debt relief industry between partners that have a falling out. But the reason I find the complaints often fascinating is they provide a look into the history of some organizations and entities. We get to learn how the whole thing developed. In this case we have the April 1, 2015 ... Read More »

                      Family Makes Their Mortgage Payments But Gets Foreclosed On Anyway


                      How ridiculous would it be if you made all your mortgage payments in full and on time for years and your mortgage lender foreclosed on you anyway? Surely that could never happen. Unfortunately, that’s exactly what happened to Henry and Elizabeth Manfrediz, a lovely married couple with four kids and a cute dog, who live in Florida. Henry and Elizabeth ... Read More »

                        Consumer Services Corp / Client Services Debt Relief Mailer

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                        Recently I’ve had several different mailers sent in that seem to continue the past theme of looking like official notices, government mailers, or continuing to use official seals or logos. Here is one of them. Consumer Services Corp. / Client Services The one below from Credit Services uses an official looking seal and the mailing address appears to be a ... Read More »

                          Is the AAFES Military Star Credit Card Screwing Over Veterans?

                          Where did my debt relief company go?

                          Ashley Woods wrote to me and expressed grave concern about a situation she ran into with an AAFES Military Star credit card she owed. It’s one thing to have a balance due but it’s quite another when the collection company appears to just make up what you owe. Ashley she was contacted by Transworld Systems and appears to have gotten ... Read More »

                            CFPB Stops Bad Check Debt Collector From Frightening Consumers


                            Today, the Consumer Financial Protection Bureau (CFPB) announced an enforcement action against a nationwide debt collection operation and its chief executive officer for using deceptive threats of criminal prosecution and jail time in order to intimidate consumers into paying debts for bounced checks. The company also misled consumers into believing that they must enroll in a costly financial education program ... Read More »

                              Debt Relief Scammer Gets More Than 11 Years Behind Bars

                              mans hands behind bars in jail or prison

                              Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, today announced that Jonathan L. Herbert, age 36, of Lighthouse Point, Fla., was sentenced today to 140 months in federal prison for wire fraud in connection with a fraudulent mortgage relief scam. Herbert operated the ... Read More »

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