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Sued or Sanctioned

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.

      Ready to Collapse

      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

        Ready to Collapse

        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 »

          Persels and Associates Gets Into It With Kansas. Kansas Says Not Loving Attorney Model Debt Settlement.

          Ready to Collapse

          The Topeka Capital-Journal is reporting an interesting development in Kansas regarding debt settlement. I’ve bolded the most interesting parts of the article below. But this case may be of significant interest for those staking a future under an attorney model to conduct debt settlement activities. A Maryland-based company conducting debt settlement activities in Kansas has challenged the authority of the ... Read More »

            Ohio Not Happy With National Homeownership Assistance Foundation, Lifeline Financial Legal Home Solutions, and 1st American Law Center

            Ready to Collapse

            The press release from the Ohio Attorney General is below but the case that really caught my attention was the one against 1st American Law Center where a California attorney was charged as not being authorized to act as an attorney in Ohio and not registered to do business in the state. The attorney is charged with violating the Ohio ... Read More »

              Should Ex-Cons Run Debt Relief or Debt Settlement Companies?

              Devoto Prison

              There are a number of people that I’ve been aware of that are heavily involved in the debt settlement world that have served prison time for fraud and other issues. Up till this point I don’t think I’ve ever specifically reported on anyone in that camp. But I’m interested in what people have to say on the subject if ex-cons ... Read More »

                United Law Group Class Action Case Over Loan Modifications, Moving Ahead

                Loan modification attorney Sean Rutledge and firm United Law Group lost a recent round in a class action case moving forward in California. The Fourth District Court of Appeal has ruled that a former client can proceed with a suit alleging that Irvine attorney Sean Rutledge, who resigned from the State Bar in November amid accusations of loan modification misconduct, ... Read More »

                  This is Why Debt Settlement Companies Need to Sit Up, Take Notice, and Fly Straight

                  Ready to Collapse

                  I’m posting this comment I received, not as a threat against debt settlement companies, but as an educational opportunity to show companies that want to play fast and loose with consumers that there are risks. No question: Just a note to tell you that I am a huge fan of your web site. I am a debtor’s attorney in [ ... Read More »

                    ABC Debt Relief, Kevin Devoto and Lloyd Regner Sued Again. This Time With X-Rated Allegations.

                    ABC Debt Relief had been sued previously by one of their senior debt consultants, G. Chris Onorato. For some reason Onorato sought new counsel and filed a new suit against ABC Debt Relief and this time names Kevin Devoto as an owner of ABC Debt Relief. Up until this point the fact Kevin Devoto was an owner of ABC Debt ... Read More »

                      Credit Solutions and Florida. Two Sides of The Same Story

                      Here is a great example of two sides of the same event. First from the Florida Attorney General, and then from Credit Solutions. Which side do you think was victorious? Florida Attorney General Press Release Attorney General Obtains Injunction Against Debt Settlement Company ~ Credit Solutions’ unfair fees prohibited by temporary injunction ~ TALLAHASSEE, FL – Attorney General Bill McCollum ... Read More »

                        Credit Exchange Hit With $16.4 Million Judgment

                        Things are all of a sudden not looking so good for Debt Settlement marketers that were involved with the failed debt settlement, contract validation, and debt reduction services company known most commonly as Hess-Kennedy. On July 28, 2010 Steve Vanderhoof and the Credit Exchange were hit with a $16,388,820 judgment for their marketing and services they delivered to Laura Hess ... Read More »

                          Clean Credit Report Services Loses Big to FTC

                          Ready to Collapse

                          A credit repair operation has agreed to stop making false claims and stop charging up-front fees under a settlement with the Federal Trade Commission. The settlement is part of an ongoing crackdown on scams that target financially strapped consumers, in this case taking hundreds of dollars in fees to purportedly remove negative information from consumers’ credit reports even if the ... Read More »

                            Doug Van Arsdale of Credit Solutions of America Loses Awesome Football Season Tickets to IRS

                            Ready to Collapse

                            Tipsters have been sending in information about a rumor that Credit Solutions of America CEO just had the IRS seize and sell Dallas Cowboy season tickets he was using to make a little dent in the $4.5 million owed by his other company, Lending.com, to the Internal Revenue Service. The Dallas Morning News is reporting the prime seating tickets sold ... Read More »

                              Foreclosure Rescue Attorney Must Pay Consumers $1 Million in Restitution

                              Ready to Collapse

                              LOS ANGELES – Attorney General Edmund G. Brown Jr. today announced a $1.1 million judgment against longtime Los Angeles attorney Mitchell Roth after he conned 2,000 desperate homeowners into paying him thousands of dollars to file “frivolous and phony” lawsuits that didn’t reduce a penny of mortgage debt for a single client. “Roth promised foreclosure relief through aggressive litigation, but ... Read More »

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