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Allegedly fraudulent debt relief company shut down by court

When a family is mired in overwhelming debt, it may be tempting to look for a possible solution no matter the source. However, there are some ill-reputable debt relief companies that seek only to profit from the financial woes of others. Washington families that are struggling with debt may have heard about the company that was recently temporarily closed down.

This company, which called itself the Bill Payment Government Assistance Program, operated through two known web addresses. The owners of the sites positioned themselves as having government endorsement for its services. According to the official complaint that was filed by the Federal Trade Commission, the owners not only claimed to be affiliated with government programs, but they featured video spots that purportedly had a voice-over from the president giving his endorsement of the program's services.

According to statements, consumers were promised assistance with paying debts up to $75,000. The company is also alleged to have promised that credit scores for its clients would show improvement within 30 days. The scam then offered consumers the opportunity to pay a service charged that it referred to as "advanced" of between $900 and $1,100. For this amount, the company purportedly claimed it would pay off the client's bills. However, once the customer made the payment through a service, the amount due was reversed back to the client.

The Federal Trade Commission petitioned the court to shut down this alleged scam, which the court has recently ordered. The operators are being charged with several offenses, including deceptive business practices. Washington families that are struggling to stay one step ahead of financial disaster need real debt relief and not scammers looking to profit from their misfortunes. One possible legitimate way to obtain relief may be to investigate how a personal bankruptcy could allow a family to hit the financial reset button and get ahead of their bills once and for all.

Source: acainternational.org, "FTC Asks Court to Shut Down Phony Debt Relief and Credit Repair Scheme", , Aug. 22, 2014

Source: acainternational.org, "FTC Asks Court to Shut Down Phony Debt Relief and Credit Repair Scheme", , Aug. 22, 2014

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