Debt Relief Fraud

Debt Relief Fraud

If you've been trying to consolidate or eliminate your debt and feel like you've been scammed by a company in the debt relief industry, you're not alone.

Florida's Attorney General Bill McCollum announced his latest initiative to combat debt relief fraud. He said the number of complaints has increased by more than 60% since last year. Officials sited more than 1,400 debt-related complaints so far this year.

Most of the complaints include debt services such as credit counseling, credit repair, debt management and credit card rate reduction.

"Companies are saying that they will actually eliminate your debt altogether, or that you don't have to pay it, or that you'll come up with some alternative that's even better?but there's no absolutely safe guarantee," said Attorney General Bill McCollum.

Consumer Safety Tips

* Check with the Better Business Bureau

* Ask questions

* Don't pay up-front fees

* Remember: If it sounds too good to be true, it probably is

Legal Action

Thirty-one companies are currently under review. The Attorney General's office filed lawsuits against IXE Accelerated Financial Services and Enterprise Technology Group, Inc. Economic crimes officials announced pending litigation against two Jacksonville companies: United Debt Solutions, Inc., and Provident Financial Solutions.

Attorneys already reached a $320,000 settlement with a company in Pinellas County called New Leaf Associated, LLC.

Subpoenaed companies include: Financial Freedom Resources, Inc. of Clearwater; Specialized Funding of Largo; United Debt Solutions, ADA Tampa Bay, also know as American Debt Arbitration; Nodelay Enterprises, Inc., also know as Nodelay Account Services of Orlando; and Equity First Financial Corp. of Casselberry.

Consumer advocates urged consumers to try and consolidate their debt and financial problems on their own before seeking assistance for debt relief companies.

"They're trying to get their credit back in order, they're trying to?they're seeking help, they're basically looking to these companies to help them get their credit back on track and these companies are blatantly deceiving them," said Brad Ashwell, consumer advocate for the Florida Public Interest Research Group.

If you think you've been victimized, Attorney General McCollum reminds you to contact Florida's consumer fraud hotline at 866-966-7226 or file a complaint at www.myfloridalegal.com.