Credit Card Debt Settlement Companies Being Investigated
Andrew M. Cuomo, New York State's Attorney General, announced that over a dozen debt settlement companies are under nationwide investigation for selling expensive plans and not providing services promised to already financial strapped credit card owners. Subpoenas were issued to Consumer Debt Solutions, American Debt Foundation, Inc, Credit Answers, LLC, American Financial Service, Debt Settlement America, Debt Remedy Solutions, LLC, Debtmerica Relief, Debt Settlement USA, DMB Financial, LLC, Freedom Debt Relief, New Horizons Debt Relief Inc., New Era Debt Solutions, Allegro Law Firm, U.S. Financial Management Inc. (d.b.a. My Debt Negotiation), and the Preferred Financial Services, Inc. on May 7, 2009.
Documentation is being gathered on the fee structures and what kind of credit debit relief the companies are giving. The debt settlement plans examined as of this date are being found financially unsound and the claims made by the debt settlement companies in their advertising misleading at best and often completely false. Complaints filed with the Attorney General’s office by consumers, state the nature of services offered by these companies are falsely presented and claims are being made that the credit card debt can be reduced by 75% when they negotiate with the credit card holders. The fees charged for handling these negotiations are a percentage of the overall debit and are often taken up front.
There are over 2,000 debt settlement companies doing businesses in the United States. Check your Attorney General’s office and the Better Business Bureau for information on any debt settlement company prior to signing any paperwork or forking over any money if you feel you want to try this avenue to resolving your credit card debt problems. Keep in mind that many have found themselves in more debt from the experience.
Consumer Money Saving Tip – Contact the credit card companies yourself and negotiate a lower interest rate. It will cost you nothing but time and they are more likely to work with you than a debt settlement agent.
Federal Trade Commission Issues Consumer Alert on Stimulus Scams
The FTC is warning that any emails or telephone calls citizens receive stating they are eligible for a stimulus check are bogus. The IRS does not send emails requesting your social security number nor are any rebate companies handling distribution of government stimulus checks.
Scam artists are using a variety of ways to bilk consumers out of money or personal information. Simply asking for a bank account number to deposit a stimulus check into though an email that appears to have come from the IRS has been very effective for some scam artists. Other emails give links to be clicked on to view forms or get additional information. The act of clicking on the link downloads computer code that, then or later, transmits passwords and financial account numbers stored on your computer to the identity thief.
Forward any emails claiming to be from the IRS to phishing@irs.gov and the email without clicking on anything in the email. Learn more about protecting against identity theft by visiting
www.ftc.gov/bcp/edu/microsites/idtheft/
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
If you have any questions or comments regarding this article
please contact Coastal News Contributor at news@coastalcreditsolutions.com |
Getting Started 
