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Sued or Sanctioned

Morgan Drexen Sued by CFPB. Take That!

cfpb

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

    mans hands behind bars in jail or prison

    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

      mans hands behind bars in jail or prison

      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

        cfpb

        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 »

          RIP Nelson Gamble & Associates and Jackson Hunter Morris & Knight

          sad-woman

          So here is the predictable circle of life with some of the debt relief troubles I’ve written about. I write about a company. I get attacked that I don’t know what I’m talking about. The regulators take action. The company is toast. Sometimes the underlying people behind these efforts make a ton of money, stash some and settle with the ... Read More »

            Seriously Debt Relief Industry – Connecticut!

            Shocked face.

            Another day, another debt relief company falls into the trap known as Connecticut. This time the unlucky recipients are James F. Baker, Independent Rescore Systems, Deleting Your Debts Company, Deleting Your Debts, Intake Application Center, and Intake Applications. Here is what the State has to say. 1. Rescore was a Nevada corporation from August 11, 2006 to September 1, 2012, ... Read More »

              Lloyd Ward Loses Law License in Litigation. Only for Two Months.

              Screen Shot 2013-07-31 at 2.01.46 PM

              Writing anything about Lloyd Ward is a touchy subject. On one hand he was a prominent debt settlement attorney and on the other hand he sued my wife and I. In my personal situation the case was dismissed. In all, I really don’t hold a grudge or even “hate” the guy. As far as I’m concerned he’s just relevant news ... Read More »

                Connecticut Makes it Tougher on Unlicensed Companies

                Screen Shot 2013-07-30 at 9.50.17 AM

                I’ve been writing about the debt relief world for a long time now. But today the Connecticut Department of Banking pulled a new one on me. Not only is Connecticut tough as nails when it comes to offering debt relief in their state, but now they are even going after companies that “are violating or are about to violate the ... Read More »

                  A+ Financial Center Scheme Settles With FTC

                  ftc

                  The Federal Trade Commission has settled with a set of defendants associated with the A+ Financial Center scheme. They were charged in last year’s joint law enforcement sweep against five companies that made millions of illegal pre-recorded robocalls claiming to be from “Rachel” and “Cardholder Services” and pitching credit card interest rate reduction services. In the five complaints announced in ... Read More »

                    World Law Debt, Meet Oregon

                    Panic attack

                    World Law Debt might want to read the tea leaves facing them from recent actions by North Carolina and now Oregon. Read past article on World Law Debt On July 1, 2013 the Oregon Department of Justice and Department of Consumer and Business Services sued Swift Rock Financial, Wold Law Debt, World law Direct, World Law Group, World law Plan, ... Read More »

                      FTC Goes After More in Alleged Credit Card Interest Rate Reduction Scam

                      robbery

                      The Federal Trade Commission continued its crackdown on credit card rate reduction scams by adding eight new defendants to a case the agency brought last year, including a payment processor it alleges assisted in the fraud. The FTC filed an amended complaint against the defendants behind the firm Treasure Your Success (TYS), which allegedly made deceptive “cardholder services” robocalls, promising ... Read More »

                        New Life Consultants / New Life Financial Solutions Gets a CT Time Out

                        Cure the disease

                        The Connecticut Department of Banking has issued a cease and desist and civil penalty against New Life Consultants / New Life Financial Solutions for running afoul of the Debt Adjusters and Debt Negotiation statutes. After giving the New Life folks a chance to respond, the State gave up and has now issued a $100,000 fine against the troubled company. – ... Read More »

                          Innovative Wealth Builders in FTC News Again With Independent Resources Network

                          Screen Shot 2013-06-05 at 12.49.10 PM

                          It seems like forever Ive been writing about Innovative Wealth Builders and all the unhappy consumers that feel for their debt relief pitch. But it looks like the FTC has taken a step against their payment processor that could have ramifications in other parts of the debt world with payment processors and escrow companies. According to the Federal Trade Commission ... Read More »

                            CFPB Suit Against Debt Relief Company Should Make Industry Very Afraid

                            Boom goes the dynamite.

                            Yesterday the Consumer Financial Protection Bureau filed suit against American Debt Settlement Solutions, Inc. and Michael DiPanni. If you are in the debt relief industry you need to become painfully familiar with this suit because it will make you soil your pants. For the first time the CFPB has laid out its hand on what they feel is an abusive ... Read More »

                              Universal Debt Services Gets Order to Make Restitution

                              The folks over at the Connecticut Department of Banking, otherwise known as the people you don’t want to F with, have reached out and touched Universal Debt Services, Inc. in New York. The State assets the following: 1. Respondent is a New York corporation with offices at 100 Veterans Boulevard, Massapequa, New York, and One Cross Island Plaza, Suite 100, ... Read More »

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