Attorney General Lori Swanson has filed lawsuits against 6 debt settlement firms for operating illegally in Minnesota. Not only were the firms operating without a license, they were also severely overcharging the very clients that went to them seeking help from their debt.
These are the debt settlement companies that are being sued:
- American Debt Settlement Solutions, Inc.
- Debt Rx USA, LLC
- FH Financial Service
- Morgan Drexen Inc.
- Pathway Financial Management Inc.
- State Capital Financial Inc.
Debt settlement companies are increasingly being pursued for violations of state and federal laws. One of the biggest problems with debt settlement companies is that they are so ineffective, yet charge extraordinarily high fees to clients that cannot afford it.
Still, clients frequently choose debt settlement companies over other alternatives because they are quoted a lower monthly payment. What they fail to realize is that they are normally throwing what little money they have away. Most fail to even research the companies to see how reputable they are.
Swanson was very direct in her criticism of the debt settlement companies named in the lawsuits:
What is really unfortunate about these practices is that the consumers who hire companies like these are trying to do the right thing. They know they have financial trouble, They’re trying to hire an advocate to be on their side and help them manage a bad situation. Only rather than get help, they get exploited.
Victims of these or other debt settlement companies should contact the Attorney General for more information on refunds or restitution. Additionally, you may share your story to warn others about the dangers of contracting with companies that run afoul of the law.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
Favorite quote:
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
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