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Sued or Sanctioned

Connecticut Announces New Wave of Debt Relief Company Actions

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The State of Connecticut is very active when it comes to going after debt relief companies. I publish these actions as a warning to other debt relief companies so they can learn from the issues others have faced and avoid them. In particular it appears the State Department of Banking is taking action against attorneys who are not licensed in ... Read More »

    EFA Processing Signs Consent Order

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    The State of Connecticut has just entered into a consent order with EFA Processing and Ken Talbert over debt relief help offered to State residents. According to , EFA Processing “voluntarily agrees to consent to the entry of the Consent and Agreement described below without admitting or denying any allegation or any claim contained in the Order and Notice and ... Read More »

      Loan Modification Debt Company Owner Sentenced to Prison

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      Ian Kideys, 40, of La Jolla, California was sentenced to five years in club fed for his role in K2 Capital Management, U.S. Mortgage Bailout, and iLoanAudit. Shocker, a loan modification company owner found guilty of fraud. According to prosecutors, “US Mortgage Bailout obtained some mortgage relief for its customers through fraudulent representations to lenders, but otherwise simply collected money ... Read More »

        Debt Relief Company Officers to Face More Personal Liability From CFPB

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        Indications out of the CFPB are that the agency plans to go after individuals in enforcement actions and not just companies. “In a speech last week to the Reuters Washington Summit, Director Cordray is reported to have indicated that the CFPB is committed to pursuing individuals, and not just companies, when exercising its enforcement authority.” The same report stated that ... Read More »

          Meracord / NoteWorld Falls to CFPB. Global Client Solutions to Follow?

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          Yesterday the Consumer Financial Protection Bureau announced an action and settlement against Meracord, previously known as NoteWorld. Meracord was one of the two primary players assisting debt relief companies to collect money from consumers and then pass it on to debt relief companies. Global Client Solutions is the second. What makes this current episode all seem so silly was the ... Read More »

            Debt Care USA Added to Scott Law Group Hit List

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            The Scott Law Group, the Spokane law firm that has seemingly specialized in pursuing many debt relief companies has added a new company to their list. Debt Care USA has been added after a September 27, 2013 class certification in Spokane County Superior Court. Case documents can be accessed here. As of today the companies listed in play with The ... Read More »

              Lloyd Ward and His BFF Lloyd Regner Found Guilty

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              The only part of this story which make it even more bizarre is the fact Lloyd Ward and Lloyd Regner, ex-business partners, are now involved in suing each other and allegedly trying to win back their mutual former clients from each other. Whatever was going on between them, can be read here. But in a press release issued a couple ... Read More »

                Serial Debt Relief Scammer Busted Once Again by FTC

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                Under settlements with the Federal Trade Commission, the defendants in two Tampa, Florida-area operations that allegedly bilked consumers of millions of dollars are banned from providing various types of financial services used in their schemes. In the spring of 2012, at the request of the FTC, a court shut down the two operations. According to the FTC, the defendants used ... Read More »

                  Well Done Debt Settlement Solutions

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                  Debt Settlement Solutions, a Florida company, had been previously contacted by the State of Connecticut about operating without a license. Usually these things end badly but in a rare occurrence it looks like one company, Debt Settlement Solutions, This situation shows how flexible state regulators can be when debt relief companies participate in the process. According to the State, “By ... Read More »

                    Independence Law Group Slapped by Connecticut

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                    The Connecticut Department of Banking has announced Independence Law Group has engaged in acts or conduct, violating the laws of the state regarding debt adjusters and debt negotiation. The company was ordered to cease and desist and was imposed a civil penalty of $100,000. According to the State, “On July 11, 2013, the Order and Notice sent to Respondent’s agent ... Read More »

                      Details on CFPB Lawsuit Against Morgan Drexen

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                      Yesterday I mentioned the Consumer Financial Protection Bureau filed suit against Morgan Drexen. As I mentioned, I said I would take more time today and wander through the complaint filed and share more about the allegations. If there was no doubt in the mind of any debt relief industry executive if the CFPB was set to regulate the industry, the ... Read More »

                        Morgan Drexen Sued by CFPB. Take That!

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                        Recently the debt settlement company Morgan Drexen sued the Consumer Financial Protection Bureau, CFPB, hoping they would be declared unconstitutional and disbanded. For more, see this and this. Today the CFPB turned around and unloaded their long-term investigation into Morgan Drexen and filed suit against them. I’ll review the entire lawsuit tomorrow but for now, here is what the CFPB ... Read More »

                          California Mortgage Modification Scammers Get Jail Time

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                          The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) today announced that on July 29, four California men were sentenced for defrauding hundreds of victims in a real estate scam that included fraudulently collecting upfront fees for loan modification services and sending fake letters with mortgage servicer logos offering home loan modification assistance. Victim losses ... Read More »

                            Debt Settlement Providers Pocketed Money, Got Prison

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                            Houstonian Nathaniel Chilo, aka Nathaniel O’Neil, 23, now convicted in two separate debt relief scams, has been sentenced to prison again, United States Attorney Kenneth Magidson announced today. Chilo entered a plea of guilty to wire fraud in relation to this case Thursday, Dec. 13, 2012. Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Chilo ... Read More »

                              Morgan Drexen Rumble With CFPB – Update

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                              Previously covered the suit filed by the debt settlement company Morgan Drexen against the CFPB, here. Today I went to see what, if any, updates there were on the case. Here is the latest: “The Court held two on the record telephone conference calls with the parties on July 24, 2013 and July 25, 2013, during which Plaintiffs consented to ... Read More »

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