The Department of Consumer Affairs is set to push and conduct investigations to look into cases of fraud on fifteen debt settlement companies. These companies are going to undergo thorough investigations after examinations of their records showing that they have been on their fourth year of having debt collection complains from various individuals and groups.
Each of the companies that are going to be examined by the Department of Consumer Affairs have received complaints from their customers that are linked to fraud. Customers say that the debt collectors have been making false claims, producing incorrect statements, collecting upfront fees and harassing some of the customers in terms of how and when they collect the debt.
The Federal Trade Commission has proven through research and actual cases that fee based debt settlement services do not do very well in terms of business and have a success rate of less than just 1%.
In order to promote safety and protection of consumers, the Department of Consumer Affairs Commissioner Jonathan Mintz has issued an announcement this Tuesday that they have sent subpoenas to the fifteen debt settlement companies that they will be dealing with. Most of them are located in New York and other major cities in the United States.
The fifteen companies that will undergo investigations and examinations from the Department of Consumer Affairs are: America Debt Free, CF Capital Financial Group, Cooperative Credit Union Management, Credit 911, Debt Remedy Advice, Debt Rx USA, LLC, Diamond Financial Group, Global Debt Management, iCorpFunding, Life Coach, Inc., New Path Financial, The Resolution Group, Right Start Financial, Square One Debt Settlement, and United Debt Resolution Group.
Tags: debt resolution, Debt Rx USA, Square One Debt, major cities, actual cases, usa llc, Cooperative Credit Union
