Eleven debt management companies settle with A.G.

Eleven debt management and credit counseling companies have settled investigations with the Colorado Attorney General office under credit and consumer laws that went into effect last year.

The companies will refund a total of $923,370 in program fees to 912 Colorado consumers.

Debt management companies generally work with unsecured debt such as credit cards and medical bills. As of last year the companies are required to register with the Attorney General’s office.

Since that time the Attorney General’s office received 27 consumer complaints about debt management companies. The most common violations were failing to be registered, charging illegal fees and failing to allow consumers to cancel contracts.

As a result of these investigations and settlements, debt management companies have refunded

“In this current economy, consumers need to be particularly careful about offers to eliminate debts and erase negative information from credit records,” Attorney General John Suthers said. “Consumers should avoid paying large amounts in money in return for promises that sound too good to be true.”

The eleven companies include:

Century Negotiations, Inc., a Pennsylvania debt settlement company

Clearone Advantage, LLC dba Clearone Debt Relief, a Maryland debt settlement company

Credit Answers, LLC, a Texas debt settlement company

Debt Relief of America, a Texas debt settlement company

Financial Freedom Resources, Inc., a Florida debt settlement company

Freedom Debt Relief, LLC, dba Freedom Debt, Freedom Debt Help, Freedom Debt Reduction, Freedom Debt Relief USA, Freedom Financial Network and Debt Resolution Partners, a California debt settlement company,

National Foundation for Debt Management, Inc., a Florida credit counseling company

New Beginnings Debt Settlement, LLC a Florida debt settlement company

New Life Debt Relief Corp., a California debt settlement company

PDL Assistance, Inc. dba PDL Eliminators, an Alabama debt settlement company

Pemper Companies, Inc. dba Curadebt, Curadebt Systems and Banks, Schwarz & Levitz, a California debt settlement company

  • Pat Hutchinson

    I am about to sign up with Century Negotiations, Inc. to pay off $13,000 in credit card debt. Since this company is at the top of your list of questionable companies, what is your suggestion is how I should proceed