Another company settles with regulators over hyped up debt - Blogs

An Ohio-based company and its owner are being charged with fraudulently claiming on 17 websites they operated that consumers could quickly get out of debt by working with one of several debt settlement companies.

The company owner, Ryan Golembiewski, has agreed to a settlement barring the deceptive claims, and to a judgment requiring him to pay more than $390,000, the Federal Trade Commission said in a statement.

Claims and testimonials from United Debt Associates-owned web sites

United Debt Associates, were ?lead generators? paid by debt settlement companies to refer consumers who responded to the deceptive ads, according to an FTC lawsuit.

United Debt earned about $24.60 per lead generated using websites such as:

• legitimatedebtsettlement.com

• freedebtreductionhelp.com

The defendants directed consumers to either provide their contact information online or call a toll-free number for help with their credit card debt.?Consumers who called either were routed directly to the debt settlement companies or were asked to provide preliminary information to the defendants, the complaint stated.

According to the lawsuit, the deceptive claims the defendants used to entice consumers to contact them included:

• ?Once creditors agree to make a deal, you can get out of debt from 12 to 36 months.?

• ?The U.S. government decided to introduce a stimulus package to boost the financial institutions and prevent them from breaking down.?Part of this stimulus money is being utilized by the [c]redit card companies to offer debt settlements to the users.?

• Debt settlement companies ?can take all of your outstanding debt and not only eliminate at least 50 percent of it but also provide a realistic repayment plan for the rest of your debt.?

• ?If you play your cards right, your debt problems will vanish before the first year ends.?

?Consumer testimonials? on the defendants? websites, which conveyed the impression that consumers could successfully and quickly reduce or eliminate their debts by using the supposed debt settlement services the defendants advertised, weren?t genuine, the FTC alleged.

The defendants didn?t have support for the claims they made that the debt settlement companies would substantially reduce or eliminate consumers? debts, according to the FTC.?Instead, they posted claims provided by the debt settlement companies or?copied information from other debt relief websites.

For consumer information about debt relief, see ?Money Matters:? Debt Relief Services.?

For more information for boomer consumers, see my blog The Survive and Thrive Boomer Guide.

Source: http://blog.seattlepi.com/boomerconsumer/2012/10/17/another-company-settles-with-regulators-over-hyped-up-debt-reduction-claims/

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