November 13, 2009
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News: IL Attorney General Fights Deception
In May, Illinois Attorney General Lisa Madigan filed a lawsuit against a credit card debt settlement firm for deceptive marketing practices. The suit charged SDS West Corporation, of Aliso Viejo, California and its partner Nationwide Support Services as luring consumers with false promises to reduce their credit card debt by 50 percent or more. Instead, the company charged the consumers excessive fees and did little or nothing to help them. Madigan has taken aim at two more companies who allegedly make false promises to help consumers reduce their credit card interest rates. In a suit filed by Madigan Priority Direct Marketing International Inc. and Advanced Management Services NW, two telemarketing companies, allegedly joined efforts in targeting consumers to join a bogus debt negotiation program.
The Illinois Attorney General indicated that during these difficult economic times, debt ridden consumers are vulnerable to these types of deceptive schemes. Understandably, credit card customers dealing with insurmountable debt is looking for relief. Madigan urges consumer to be aware of the deceptive practices of organizations looking to reap in immediate profits and deliver nothing. These criminal activities just leave the consumer hurting more than they did previous to the encounter. Americans who need relief from piles of debt will be better served to contact their credit card companies directly. Most lenders are very willing to work with customers who have a desire to accept their responsibilities.
Court documents allege that Priority Direct Marketing International Inc. and Advanced Management Services NW promised immediate savings from credit card interest rate charges. The companies also guaranteed refunds if negotiations failed; however, when negotiations did fail, they frequently refused issuing refunds. In cases where they did provide a refund, the amount was significantly reduced after deducting service fees. The Federal Trade Commission recently reached a settlement with two other companies claiming to be able to fix consumers' credit history. Those companies were ordered to pay restitution which has been suspended because of an inability to pay. Hopefully the Illinois Attorney General will have better luck.