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New York State Attorney General Andrew Cuomo announced a nationwide investigation into the debt settlement industry. This has always been an aggressive office for consumer protection. The debt industry is a necessary survival tool for many consumers that have gotten in way over their heads with easy credit. Unfortunately, many scam artist are willing to scam these already desperate consumers.
“Today, millions of hardworking Americans are finding themselves imprisoned by debt. In response, a rogue industry has stepped in, offering consumers false hope, charging tremendous fees, and leaving them in a worse financial situation,” said Attorney General Cuomo. “Our mission is clear: to hold unscrupulous businesses accountable; to rein in a renegade industry; and to ensure that people are not victimized when faced with financial hardship.”
As part of his broad investigation of the debt settlement industry, Cuomo today issued subpoenas to fourteen debt settlement companies and one law firm: American Debt Foundation, Inc.; American Financial Service; Consumer Debt Solutions; Credit Answers, LLC; Debt Remedy Solutions, LLC; Debt Settlement America; Debt Settlement USA; Debtmerica Relief; DMB Financial, LLC; Freedom Debt Relief; New Era Debt Solutions; New Horizons Debt Relief Inc.; Preferred Financial Services, Inc.; U.S. Financial Management Inc. (d.b.a. My Debt Negotiation); and the Allegro Law Firm.
Many in the industry have already tried to self-regulate and give consumers information to sort the bad from the good. Unfortunately, they still creep in and give the good guys a bad name.
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