Attorney General charges Dallas debt management firm with fraud

[TexasTowelie]

Texas Attorney General Greg Abbott has charged a Dallas debt management firm with defrauding its customers.

The state’s enforcement action sought an asset freeze and temporary restraining order against Credit Alliance Group, doing business as Credit Services Today, and Shane V. Garner, owner and chief executive.

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The company contacted consumers with debt problems, claiming it would eliminate 20 to 60 percent of their debt within three years, investigators said.

“CAG promised that customers would not owe the firm ‘a dime’ if the firm failed to deliver on its claims,” Abbott’s office said. “However, the state’s investigation revealed that customers were nonetheless charged up-front fees, sometimes up to 35 percent of the debt they owed, and that CAG failed to deliver on its services.”

More at http://bizbeatblog.dallasnews.com/2013/04/attorney-general-charges-dallas-debt-management-firm-with-fraud.html/ .

[KT2000]

1. Good - they are probably

not the only ones doing business like this.

[TexasTowelie]

2. I recall that Ameridebt pulled a similar scam about a decade ago.

It lead to a class-action lawsuit against them. Hopefully their clients will see the news and a good attorney.