Faugh ... once again, large-scale fraud pays off

[unixronin]

CNN reports that four credit-counselling companies that bilked consumers out of more than $100 million without helping them are making settlements with the FTC, but the companies are being required to collectively repay only $25 million of the money they defrauded from their customers.  Two of the three -- National Consumer Council, of California, the largest offender, and AmeriDebt Inc., of Maryland, are to shut down; the owners of Debt Management Foundation Services, of Florida, are being required to sever their connection with the company; but none of the owners will face jail, because the FTC has no criminal authority.  The remaining company, Better Budget Financial Services, of Massachusetts, will be allowed to re-enter business after posting a $2 million bond.

So, let's see, steal $100 million from almost anywhere else, go to Federal stir.  Steal $100 million from individual consumers with financial problems, and, relatively speaking, get a slap on the wrist.

Comments

[technoshaman.livejournal.com]

Ducky. Fortunately I checked the BBB website before going in, and got a decent agency...

But, yeah, I hear commercials all the time for either consumer counseling or (more often) home equity "debt consolidation" loans that don't pass the Clark Howard (too good to be true) test... *sigh*

[unixronin.livejournal.com]

I'm afraid I have little faith in or respect for the BBB, partly because I understand they have a process allowing companies to effectively "buy off" adverse reports against them, and partly because on each of the few occasions I've tried to seek their assistance with a bad-business issue, they've basically shrugged and said, "Not our problem."

[darthgeek.livejournal.com]

A new career path for you, mayhaps? Seems like easy money..