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Article: FTC Probes Debt Settlement Companies.(Federal Trade Commission)
- Article from:
- Collections & Credit Risk
- Article date:
- May 1, 2005
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Abusive practices by bogus debt settlement and credit counseling companies are under the Federal Trade Commission's scrutiny as the agency moves to clean up the business.
The FTC in March ordered AmeriDebt to close its debt management business, then fined three other debt management firms that bilked consumers out of more than $100 million. AmeriDebt, a credit counselor based in Gaithersburg, Md., received the largest fine. It was ordered to pay $170 million to customers for misrepresenting the company's status as a non-profit credit-counseling agency while also deceiving many into paying hidden fees.
The FTC also fined National Consumer Council, Better ...