Debt Relief of America, Fidelity Debt Consultants, Freedom Group and New Horizons Debt Relief

Charleston, WV: (May-16-07) The West Virginia Attorney General Darrell McGraw's office filed charges against four companies that offer debt settlement services, Debt Relief of America, Fidelity Debt Consultants, Freedom Group and New Horizons Debt Relief, alleging that they were not properly licensed as credit service organizations. Debt settlement is a plan offered for a fee in which consumers are advised or expected to stop making payments to credit card banks or other unsecured creditors and are directed to make monthly payments to the debt settlement company or into a separate fund or account until the debt settlement company determines that sufficient funds have been accumulated. The debt settlement then attempts to negotiate lump sum settlements of the consumers' accounts for less than the balance owed. Though the practice is allowed in a few states, and the debt settlement approach to debt relief may work for some persons, the service has legal consequences and as per state laws could only be offered by persons licensed to practice law in West Virginia. As part of the settlement, the companies agreed to refund a total of $517,000 in fees and charges to 366 West Virginia consumers. [LEGAL NEWSLINE: DEBT RELIEF]

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.
Published on May-18-07