Because substantial debt can cause stress to many Ohio residents, individuals often want to find ways to better handle their finances. There are various options that can help consumers reduce their debt, but unfortunately, not all of those options are wholly reliable. As a result, some parties could find themselves facing more financial problems after being tricked by false promises of debt help.
One law group is currently facing consequences due to taking advantage of thousands of consumers. It was reported that the Consumer Financial Protection Bureau is taking actions against the group because false promises regarding debt relief and legal assistance were made to consumers. The group reportedly told consumers to stop making their debt payments and make a monthly payment to the group instead.
The group considered the monthly payments as fees for their services, but those services were often not rendered. This advice resulted in consumers facing additional financial problems; collections calls, legal action, fees and other negative actions were taken against the consumers. The group reportedly accrued $67 million dollars from approximately 21,000 consumers seeking debt help. The group's operations and assets have been frozen as the case proceeds.
It is unfortunate that there are many debt relief ploys that are too good to be true. However, there are trustworthy options such as bankruptcy that could prove helpful to Ohio residents who are facing a considerable amount of debt. By consulting with an experienced legal professional and learning more about bankruptcy options, parties may feel more confident in the potential outcomes of their case.
Source: consumeraffairs.com, "Debt-relief scheme lands World Law Group in federal hot water", James Limbach, Sept. 17, 2015