FTC Files Lawsuit to Shut Down Mortgage and Debt Relief Scam

If you are looking for debt relief options, do your research. Debt relief scams continue to push already-struggling debtors further under water. Filing for bankruptcy through an experienced Plano bankruptcy attorney may be a better option to reduce your mortgage or credit card debt.

Under one debt relief scam, a San Antonio, Texas, man used websites that mimicked real federal agencies (including the Federal Trade Commission) to solicit unsuspecting clients. The FTC has moved to shut down Christopher Mallet’s operations.

According to the FTC complaint, Mr. Mallett “solicited indebted consumers and referred them to companies selling mortgage, tax, and debt relief services with promises that their debts would be substantially reduced or eliminated.”

Mr. Mallett was creative; he operated under such names as the Department of Consumer Services Protection Commission, U.S. Debt Care, World Law Debt, U.S. Mortgage Relief Counsel, gov-usdebtreform.net, worldlawdebt.org, usdebtcare.net, and FHA-homeloaninfo.

The FTC complaint, filed in federal district court, seeks to close down his businesses.

Debt Relief or a Shell Game?

Con artists and scammers have been misleading consumers and using deceptive names in an attempt to create associations with their “businesses” and legitimate companies and governmental agencies for decades.

There are hundreds of companies promising debt and mortgage relief, but many are not what they say they are. The millions of individuals in trouble with credit card debt and mortgages provide a ripe target for businesses who want to take further advantage of consumers who have already been badly abused by lenders and financial “experts.”

Speak With a Dallas Bankruptcy Lawyer Instead

Consider speaking with a Texas bankruptcy attorney, even if you don’t think you need to file bankruptcy. Bankruptcy lawyers understand the various consumer finance and bankruptcy laws and can explain why many so-called “debt relief” plans may be the wrong plans for those struggling financially.

Many debt relief businesses promise to reduce or eliminate much of your debt, but realistically, outside of filing a Chapter 7 or Chapter 13 bankruptcy case, it is unlikely they can do much to help. They often operate by “rearranging” your debt and charging you a hefty fee.

You can trust an experienced bankruptcy attorney to review your financial situation and thoroughly explain the potential options available to you.

Source: Federal Trade Commission, “FTC Asks Court to Halt Defendant From Impersonating Federal Agencies While Steering Consumers to Mortgage, Tax, and Debt Relief Services,” Sept. 22, 2011.