Beware in Dealing with Debt-Relief Companies – Tacoma Bankruptcy Attorney Dave Yando

March 8, 2011 - PRLog -- The case in which the Washington State Attorney General forced a debt-relief company to refund more than $740,000 to nearly 600 consumers has prompted a warning from Tacoma bankruptcy attorney Dave Yando.

“Freedom Debt Relief, a California company, was accused by the Attorney General’s office of breaking consumer protection laws,” says bankruptcy lawyer Dave Yando from his Tacoma office (http://www.yandolaw.com).

“The company settled with the Attorney General’s office as a result of allegations including the overcharging of customers, taking money from consumers before the legally permitted time, and misrepresentation of information,” explains Mr. Yando, the debt-relief attorney.

“The company told the financially strapped Washington state residents they would get a payment plan and negotiated settlements for their debts,” writes Mr. Yando.

"Failing to inform customers that their credit may be ruined and taking illegal fees - when those individuals are making a good-faith effort to settle their debts – are practices that we aim to stop," said Attorney General Rob McKenna in a statement from his government office.

"We're paying special attention to operations that take advantage of people who, due to this tough economy, are already struggling to put food on the table and keep the lights on," said Attorney General McKenna.

“This is another example of misleading claims the public faces when searching for debt solutions,” warns Mr. Yando.  

“This company told their clients to stop paying their bills and pay the debt adjustment company, a common practice in the industry,” explains Mr. Yando.

“Then, after the company has taken its fees and, as often times happens, the client's creditors will not agree to settle the debts, the clients are much worse off in the end,” adds Mr. Yando.

A published report indicates this is not “Freedom Debt Relief’s” first skirmish with the law. The Seattle P-I reported the company was forced to quit selling its programs to Washingtonians in 2009 following a federal class-action lawsuit.

Despite denying the Attorney General’s allegations, the newspaper reported “Freedom Debt Relief” is making $742,613 in refunds to at least 570 state residents. The company is also paying $70,000 to reimburse the Attorney General’s office for its legal expenses.

The settlement outlines requirements the company with which the company must comply before marketing its services in Washington again.

Mr. Yando’s tips on how to rebuild credit: http://www.yandolaw.com/rebuilding-creditcredit-concerns.

“Many Seattle-Tacoma residents find debt payment plans do not solve their problems,” explains Mr. Yando.

One proven debt solution, Mr. Yando writes, is Chapter 7 bankruptcy: http://www.yandolaw.com/bankruptc/chapter-7-bankruptcy.

You can watch the video explaining the five reasons for debt-ridden consumers to call Tacoma bankruptcy attorney Dave Yando: http://www.youtube.com/watch?v=3zw2p6KYGcg.



# # #

Tacoma bankruptcy attorney David Yando helps businesses and people with debt relief and bankruptcy services. He has more than 30 years of hands on experience in planning and litigating debt relief matters - including foreclosure defense as well as bankruptcy, real estate and taxation law.