Government Sues Debt Program

The “Debt Meltdown Program” offered by Edge Solutions Inc. in Delaware and New York,by Money Cares aka The Debt Settlement Company and akaThe Debt Elimination Center, and by Pay Help Inc., has led to a suit by the Federal Trade Commission for deceptively marketing a “debt settlement” operation without providing services reducing a consumer’s debt.

Credit and Collections World reported that the FTC described this program as an “aggressive method of helping consumers out of the debt trap and away from the bankruptcy path,” and that consumers could end up repaying only “60 cents for every dollar owed” or that they could be “debt-free in 18 to 30 months.” Consumers were encouraged to set up direct debits with their checking accounts for fees and creditor payents, but the FTC complaint alleges failure to contact creditors, failure to negotiate settlements, and failure to pay creditors.

Bankruptcy is an emotionally difficult process, but you can be hurt even more. Speak to your attorney about these other programs before you sign up.

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