Debt Free News

Debt consolidation company involved in FTC investigation

January 9, 2006

It is being recognized through our debt free news department that a well known US debt consolidation company has been accused of violating federal law in the US. According to debt free news reports the company mislead and illegally tele-marketed millions of US debt consolidation consumers. This is according to the FTC (Federal Trade Commission). The debt consolidation company is known by a handful of names in fact. If you have been dealing with any debt free help and such, be sure the company is not one of the following that is under investigation – the names it runs under are Consumer Credit Consolidation Inc. Express Consolidation, and also known as Express Consolidation Inc.

After reading the details of this investigation, we have come to realize that the FTC believes the system, which touts itself as America's Premier Debt Consolidation Company is in fact breaching the Federal Trade Commission Act and the Federal Trade Commission's Telemarketing Sales Rule. This system is apparently spear headed by an attorney in the state of Florida who is actually using a charade not for profit organization to defy tele-marketing regulations that excuse genuine not for profit companies from doing so. In turn, by using the fake front of the not for profit company – he has been bypassing the regulations.

Now, when our debt free news department read the complaint, this is what we found of interest. The company has breached the laws by falsely calling itself a not for profit organization. The company states that the only charge consumers pay for its service to them is a monthly administrative fee that is less than $49 or also that it is fee to apply to. According to the FTC investigation, the company also claims that its services will help consumers save a certain amount of their money and the system will improve their credit. Additionally, the investigation complaint we read states that the company states its consumer services will decrease the customer’s monthly payment or debt in total along with or instead improving their credit standing.

Well, in actuality the investigation ahs found that along with a monthly administrative fee, the debt consolidation company also charges its trusting customers an additional fee that equals the actual monthly fee. This fee is collected from the customer at their initial payment time. The debt consolidation company even overstates the expected savings (if any at all really). The debt help company  not only does not save the consumer from its debts and or monthly debt payments, but it does not even supply them with any real services to get their debt back on track. There additionally remains that the company cannot even help fix consumer credit ratings. The report goes on to say that the debt consolidation company is not upfront in any real way with consumers about its actually services – which seems only to be taking money from innocent people looking for debt free help with their personal finances. Total costs to customers is not explained properly either.

What’s more, the company has even been calling people who are listed on the US national do not call list. It seems to us that this complaint is serious and we recommend our debt free news article readers are positive about any company’s righteousness before engaging in any payments to them.

SO if you find your phone ringing unwontedly even though you are on the no call list – you are not alone. It is being said that thousands and thousands of unwanted called have been made in efforts to scam innocent debt free consumers out of their much needed money.

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