Beware of debt relief scams
When Atlanta area residents are in need of debt relief, it is critical that they seek guidance only from qualified, reputable legal professionals. Unfortunately, there are a number of individuals and companies out there that promise debt relief services and end up swindling people.
Oregon’s Department of Justice is currently going after a Texas-based debt relief company, asking it to pay as much as $10 million in damages in addition to restitution to more than 400 victims.
The company apparently operates under several different names and it advertises services to consumers who are struggling with credit card and mortgage debt, among other types of debt. This company stands accused of coercing consumers to put money into escrow accounts– which the company promised to use to settle with creditors.
Some customers, however, say that the escrow accounts were not used to pay creditors at all.
The Oregon Department of Justice claims that the company had about 425 clients in the state, who paid a total of more than $1.5 million into the escrow accounts. Only $275,000 of this went to pay creditors, while the rest was taken in as the company’s profit.
The company is also accused of targeting senior citizens with its scam.
It is terrible that people and companies take advantage of those who are struggling with debt, as this company is accused of doing. Here in Georgia, those who need to learn about their debt relief and bankruptcy options should work with experienced legal professionals who have solid reputations. It is wise to do some research and even ask the state attorney general if the debt relief agency or bankruptcy law firm is licensed and legitimate.
Source: kgw.com, “DOJ seeks $10M in damages from Texas debt-relief company,” Chris Willis, July 18, 2013