Louisiana residents who face overwhelming debt may be willing to try just about anything to get rid of it. There are several debt relief options available for most people. However, those in debt should be wary of scams that advertise debt relief, as they may actually increase one’s debt. One such scam has been halted by federal court.
In a lawsuit that was recently filed, 11 companies were accused of taking part in defrauding individuals who were seeking assistance with their debt problems. The companies promised customers that they would lower interest rates, make payments for customers and wipe out existing bills. However, these companies did not perform these tasks and instead took more money from their customers.
In all, it is estimated that these companies swindled tens of millions of dollars from those they promised to help. Reports indicate that individuals were most often contacted through unsolicited telephone calls or through mailers. Since the lawsuit was filed, the companies have been charged with several violations, including violating the Federal Trade Commission Act and the FTC’s Telemarketing Sales Rule.
Knowing which debt relief options to trust can sometimes be difficult. Those who are facing significant debt and looking for assistance in dealing with it may consider consulting experienced Louisiana bankruptcy attorneys to obtain more information about legitimate debt relief options. Attorneys could also assess clients’ individual situations to determine the best approach to solving these issues. Discovering and understanding the available options and choosing how to deal with the problem are the first steps for many to remedy their financial situations.
Source: consumerist.com, “Feds Shut Down Multimillion-Dollar Debt Relief Scam“, Ashley Kieler, May 25, 2017