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U.S. Governmental News

Three Firms Settle Charges in Debtor Scam

Wednesday, March 30, 2005 5:22:25 PM
By ELIZABETH WOLFE

WASHINGTON (AP) - The government Wednesday announced it has reached settlements with three companies accused of bilking thousands of debt-ridden people out of more than $100 million using schemes that often left customers in worse financial shape.

The Federal Trade Commission settled lawsuits it brought last year against National Consumers Council, Better Budget Financial Services and Debt Management Foundation Services, which have since ceased most operations.

The settlements order the companies and their principles to pay back about $7 million to consumers and include $125 million in suspended penalties, which could be paid if defendants are found to have lied about their assets.


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