Debt-Relief Firms To Pay $6 Million In FTC Settlement

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00012174-debt-relief-firms-to-pay-6-million-in-ftc/

The Federal Trade Commission announced yesterday that three consumer debt-service companies have settled charges that they cheated financially strapped customers out of more than $100 million.

The agency said National Consumer Council Inc., of California, Debt Management Foundation Services, of Florida, and Better Budget Financial Services, of Massachusetts, agreed to pay more than $6 million in consumer refunds for falsely promising easy debt relief that left many consumers deeper in debt and sometimes forced them to file for bankruptcy protection.

“All three lied about who they were, what they could do for consumers and what they charged,” said Lydia Parnes, acting director of the FTC’s consumer protection division.

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