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Debt Settlement, Debt Consolidation Companies Under Investigation – New York Attorney General investigates 14 debt consolidation firms

by WebMaster
May 11, 2009
in Legal, Press Release
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NY Attorney General secures subpoenas for 14 debt consolidation firms.

New York, NY(JusticeNewsFlash.com)–Lawyers for the New York State Attorney General’s (AG) office of Andrew Cuomo announced they have secured subpoenas, against 14 different national debt settlement companies, by a federal judge on Thursday. As reported by Reuters, legal officials are reviewing information and seeking access to debt consolidation company records who claim to be providing relief to consumers during the financial crisis.

New York’s highest government legal team is concerned these debt settlement firms may be taking advantage of struggling, innocent consumers with their fee structures. Americans have been hit hard since the financial fallout. Many consumers have lost their jobs and are unable to keep up with credit card payments and mortgage demands. The AG’s office wants to ensure the debt consolidation and settlement industry is not further victimizing people faced with financial hardship.

Subpoenas were issued to 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 and the Allegro Law Firm. The consumer legal advocates will begin reviewing company business and financial records.

JusticeNewsFlash.com news for New York government lawyers.

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