FTC Bans Credit-Card Debt Relief Business
The Federal Trade Commission put an end to the operations of Debt Relief USA Inc. in a proposed resolution of allegations that the credit-card-debt relief business enticed consumers into paying thousands of dollars in upfront fees, but in most cases failed to reduce their debts.
Consumers have received $3.7 million in refunds from Debt Relief USA's bankruptcy proceedings in a separate settlement with the Texas attorney general's office.
Debt Relief USA had made misleading claims that they can help consumers, with their program, to eliminate 40% to 60% of their credit card debt and be out of debt within 1 or 2 years.
Debt Relief USA's principals, James Wojcik and Valerie Leath were banned from marketing financial products and services. And the legal action continues against other two principals.