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CFPB: Company Should Pay $7M For Processing Illegal Fees For Debt-Relief Services

Charging up front for debt-relief services without any actual results for the customer is illegal. But despite that, says the Consumer Financial Protection Bureau, a payment processing company processed millions of dollars worth of illegal fees from consumers. [More]

Feds Say Bogus Debt-Relief Operation Just Left Consumers Deeper In Debt

Feds Say Bogus Debt-Relief Operation Just Left Consumers Deeper In Debt

Being elbows-deep in debt is a scary thing, so when a service tells you that you can “become debt free and enjoy financial independence” and that it can reduce how much you owe by “70 to 80 percent on average including all fees,” it might be tempting to give it a shot. But don’t be shocked when you end up scammed out of whatever money you have. [More]

Feds Shut Down Debt Relief Companies That Only Relieved Customers Of Their Cash

Feds Shut Down Debt Relief Companies That Only Relieved Customers Of Their Cash

We occasionally have the TV turned on in the background here at the Consumerist Batcave, so we know that anyone in the market for a sketchy debt-relief firm has many, many options to avoid calling. But now there are a few fewer questionable companies littering the daytime airwaves because the Federal Trade Commission has halted the operations of four services that allegedly made false claims about being lawyers, debited money from people who did not actually order the services — oh, and failed to get any significant debt relief for the customers that actually signed up. [More]

5 Warning Signs To Look For When Choosing A Debt Relief Firm

5 Warning Signs To Look For When Choosing A Debt Relief Firm

With many Americans still weighed down by debt, there seem to be an endless number of firms out there offering to help save people from the quicksand. Alas, not all of these people are completely on the up-and-up. [More]

White House Wants Mortgage Firms To Help Homeowners Avoid Foreclosure

White House Wants Mortgage Firms To Help Homeowners Avoid Foreclosure

An Obama administration plan calls for the 14 largest mortgage companies to contribute to a federal fund that would help distressed homeowners avoid foreclosures. [More]

40 States Ask FTC To Crack Down On Debt Relief Companies

40 States Ask FTC To Crack Down On Debt Relief Companies

Attorneys general in 40 states just asked the FTC to step up the fight against debt relief companies that mislead and overcharge consumers, like Credit Solutions of America (CSA), reports Consumer Affairs.