Attorney General Andrew Cuomo Wins Case Against National Asset Services, Inc.

[Oct 16, 2009.]

 

Beware! Not Every Debt Settlement Program Is Reputable

National Asset Services, Inc (NAS) was sued by Attorney General of NY, Andrew Cuomo, and lost. According to the Attorney General's Web site, "The court found that the majority of NAS customers were promised a 25 to 40 percent reduction in their outstanding debt but never saw such reductions. Only one-third of one percent of consumers received such savings. The other customers suffered continued harassment and lawsuits by creditors and had their credit ratings destroyed."

Mr. Cuomo's office found that National Asset Services and its affiliates and marketers "engaged in fraudulent and deceptive business practices and false advertising and made significant profits by selling misleading debt settlement plans."

A debt settlement program is supposed to reduce the amount of debt you owe by negotiating directly with the creditors on your behalf. For this service, there is a fee. The fees sometimes charged can exceed the amount of debt relief that was agreed upon through negotiating, sometimes costing the customer more than if they had just paid the debt as agreed. Often the required fees are collected up front and before the monthly payments are applied to the debts owed.

As a result of this lawsuit, NAS is now required to post a $500,000 performance bond if they want to do business in New York. NAS must also calculate and pay restitution for many of its clients who, according to the court, "completed the program but actually paid more in fees and settlements than the amount originally due on their debts."

Just Trying To Get Out Of Debt

Credit card debt that has gotten out of hand can be overwhelming. Contacting a reputable company to help with debt relief is a logical way to reduce that credit card debt and improve your credit score. Unfortunately, scams are common. It often seems like the scam artist takes advantage of the most desperate members of society. People who just want to get out of debt and start over might find themselves victimized if they don't use a quality company.

Find A Debt Relief Specialist

If you would like to eliminate your credit card debt, look for free debt consolidation advice. There are a lot of state funded agencies and other non-profit organizations that specialize in debt relief. You can also find consolidation loans from lenders whose names you may know and trust.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.