NY attorney general sues debt settlement firms

By: The Associated Press

Tuesday, May 19, 2009 1:08 PM EDT

ALBANY -- New York Attorney General Andrew Cuomo is suing two debt settlement companies, accusing them of fraudulent business practices and false advertising.
Cuomo says CSA-Credit Solutions of America Inc., of Richardson, Texas, and Nationwide Asset Services Inc., of Phoenix, and its affiliates failed to deliver on promises to consumers. Neither company had immediate comment Tuesday.

He says CSA promised it could reduce outstanding debts by 60 percent, but only about 1 percent of customers got that much. The company collected roughly $17 million in fees from about 18,000 New Yorkers between 2003 and last September.

Cuomo says NAS promised 25 to 40 percent reductions, but less than 1 percent of its 2,000 New York customers saved that much.

On the Net: www.oag.state.ny.us

To learn about consumer rights and file complaints with the attorney general: www.NYDebtHelp.com

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Farmer's Gal wrote on May 19, 2009 8:59 PM:

" When I worked in bankruptcy, we used to tell the clients that only the Consumer Credit Counseling had a rating from the Better Business Bureau -- we advised clients not to work with any other agency because the majority would get them in more trouble than not. "

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