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
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 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 »
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 »
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 »
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.
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 »
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 »
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 »
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 »
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.
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 »