Texas Attorney General Targets Debt Settlement Companies

more+
less-

Financially distressed consumers have been flocking to debt settlement companies during the economic downturn, hoping to avoid bankruptcy and limit damage to their credit scores. Unfortunately, some debt settlement companies promise more than they deliver, and charge exorbitant fees to consumers.

Texas Attorney General Greg Abbott sued Richardson-based Credit Solutions of America, Inc., in March 2009, alleging that CSA has defrauded Texans by failing to negotiate settlements with consumers’ creditors. Dallas-based Debt Settlement America is also under investigation.

Debt settlement companies know they have to clean up their reputation. “We’ve got to clean ourselves up fast,” said Scott Johnson, chief executive of U.S. Debt Resolve, a Dallas-based debt settlement company. Proposed legislation would set strict rules on how debt settlement companies operate, he said.

Please see full blog post for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robert Kraft, Kraft & Associates | Attorney Advertising

Written by:

more+
less-

Kraft & Associates on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×