Attorney General Running After Fake Debt Relief Companies

Illinois Attorney General, Lisa Madigan, is hitting hard at credit card scammers, filing lawsuits left and right, pursuing illegitimate companies, intent on bringing predators to justice. In May, Madigan sued SDS West Corporation, a credit help agency based in Aliso Viejo, California and partner of Nationwide Support Services for engaging in dubious and deceptive business practices, duping customers into believing that they have the tools to help them permanently solve their credit problems. However, it was all empty promises, with customers ending up in much worse financial distress than when they started. They were made to pay excessive fees and charges that did little to alleviate their credit woes.

Madigan has also charged two companies who collaborated in peddling a bogus credit help scheme, with a number of unknowing and unsuspecting customers falling prey to their clever tactics. The lawsuit included Advanced Management Services NW, and was charged with making false claims and conniving to entice people with credit problems into signing up with them.

Illegitimate debt rescue companies are actually having a field day in these difficult economic conditions, with debt-plagued people falling easy prey to highly irregular quick-fix debt negotiators. However, this should come as no surprise since it is a known fact that people in desperate situations, encounter difficulty in making rational decisions.

Madigan cautions consumers to be vigilant against these scheming organizations and to be wary of their deceptive tactics. Most of the time, companies who make fantastic claims and promises lack the capability and expertise to properly address debt problems and are only after people's money.

People who are saddled with debts are advised to coordinate directly with credit companies and negotiate for a doable and reasonable debt relief plan. Majority of lenders are more than willing to extend assistance to customers who show a genuine and sincere desire to extricate themselves out of a tight financial bind.

Priority Direct Marketing International Inc. and Advanced Management Services NW's modus operandi was to entice customers into believing that they had a money-back guarantee in case debt negotiations fail or proved to be unsuccessful. However, when negotiations break down, the companies frequently refused to keep their side of the bargain, dodging pleas for refund. In occasions where they did provide refund, they would deduct massive fees, with clients ending up with pitiful fistful amounts of money.

Recently, two debt rescue companies reached a settlement with the Federal Trade Commission, promising to bail out clients from their credit woes. They were also made to pay clients for damages, but as of date are not able to comply due to liquidity issues.

Bryant Park

Bryant Park is a financial consultant for one of the companies listed on Wall Street. He writes on a variety of topics ranging from credit cards to different loans that can be availed by consumers. He holds a bachelor degree in Financial Services from Dartmouth College.