The United States Federal Trade Commission (FTC) recently stopped the allegedly
deceptive practices of a debt settlement company, FDN Solutions, LLC.
This company purportedly hooked debtors with exaggerated claims about
how it could help reduce their debts. The company claimed in its advertisements
that it could reduce consumers’ debts by 40 to 60 percent. The FTC
alleged that the misleading claims did not take into account consumers
who dropped out of the program or the fees that the clients paid (which
totaled 30 percent of the savings achieved).
The company operated from offices in Tustin, California, and Tampa, Florida.
The company used third-party websites to advertise its services. These
ads stated things such as, “Reduce Debt 70% Want Proof?” and
“Save up to 70% On Credit Card Debt.” Once consumers called
the toll-free numbers, the company allegedly misrepresented the amount
of money or the percentage of the debt amount that a consumer could actually
save by using the company’s services. Other allegations concerned
fake customer testimonials.
The settlement order imposed a judgment of $3.3 million. Once $85,000 is
paid, however, the remainder of the judgment will be suspended based on
the company’s inability to pay.
Consumers who are
struggling to pay bills may need the advice of an experienced attorney to figure out what to do.
A fly-by-night debt consolidation company does not have your best interests
in mind. If you’re falling behind on bills, a Chula Vista attorney
can tell you if filing for bankruptcy is the best option for you. Call
Kerry Denton at Southbay Bankruptcy today to find out more: 619-458-3739.