Eleven debt management companies settle with A.G.
Eleven debt management and credit counseling companies have settled investigations with the Colorado Attorney General office under credit and consumer laws that went into effect last year.
The companies will refund a total of $923,370 in program fees to 912 Colorado consumers.
Debt management companies generally work with unsecured debt such as credit cards and medical bills. As of last year the companies are required to register with the Attorney General’s office.
Since that time the Attorney General’s office received 27 consumer complaints about debt management companies. The most common violations were failing to be registered, charging illegal fees and failing to allow consumers to cancel contracts.
As a result of these investigations and settlements, debt management companies have refunded
“In this current economy, consumers need to be particularly careful about offers to eliminate debts and erase negative information from credit records,” Attorney General John Suthers said. “Consumers should avoid paying large amounts in money in return for promises that sound too good to be true.”
The eleven companies include:
Century Negotiations, Inc., a Pennsylvania debt settlement company
Clearone Advantage, LLC dba Clearone Debt Relief, a Maryland debt settlement company
Credit Answers, LLC, a Texas debt settlement company
Debt Relief of America, a Texas debt settlement company
Financial Freedom Resources, Inc., a Florida debt settlement company
Freedom Debt Relief, LLC, dba Freedom Debt, Freedom Debt Help, Freedom Debt Reduction, Freedom Debt Relief USA, Freedom Financial Network and Debt Resolution Partners, a California debt settlement company,
National Foundation for Debt Management, Inc., a Florida credit counseling company
New Beginnings Debt Settlement, LLC a Florida debt settlement company
New Life Debt Relief Corp., a California debt settlement company
PDL Assistance, Inc. dba PDL Eliminators, an Alabama debt settlement company
Pemper Companies, Inc. dba Curadebt, Curadebt Systems and Banks, Schwarz & Levitz, a California debt settlement company
One Response to Eleven debt management companies settle with A.G.
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I am about to sign up with Century Negotiations, Inc. to pay off $13,000 in credit card debt. Since this company is at the top of your list of questionable companies, what is your suggestion is how I should proceed
Pat Hutchinson
November 6, 2009 at 10:05 am