Debt Consolidation Companies - Updates on what is happening in this industry
This page is used to update you on the latest news on debt consolidation companies.
Update 11/01/03:AmeriDebt has the distinct honor of being the first credit counseling company to have a federal lawsuit filed against it. The FTC and five individual states have filed separate lawsuits against the company. Declaring Chapter 11 bankruptcy in November 2003, AmeriDebt is no longer accepting new customers. If you go to the old ameridebt.com website, you will be directed to: http://www.debthelpers.com.
Ameridebt recommends that you find help at the site: 800CreditCardDebt.com. I'm sure you can guess my next sentence: whatever you do, don't use 800CreditCardDebt.com Crying over the death of Ameridebt? Rest assured, they live on - this company had already morphed into so many other companies that they are most likely around in some form.
It's interesting about that site - 800CreditCardDebt.com. Listen up! A representative from the site called me in a panic that I had listed his site under the "bad list", and assured me that his company was not Ameridebt. I asked him about his company and in a nutshell, this is what he said: the company was an advertising company that generated LEADS for debt consolidation companies, and Ameridebt used to use the company, but not any more. Yes, I'm sure it was a moral decision, since Ameridebt isn't doing any kind of advertising currently. The really dangerous thing about 800CreditCardDebt.com, if you fill out their on-line form, is that your information is just a lead to given to any scumbag company who would pay for it. Actually this is pretty common, as so many companies have such bad reps, that they don't do any direct advertisting.
Update March 2005:The FTC is shutting down Ameridebt!! http://www.ftc.gov/opa/2005/03/ameridebt.htm
Update May 2006:Always thought the the IRS was your enemy? Well, everyone or thing has a good side. Recently, the Wall Street Journal (May 16, 2006; Page D2) published an article the efforts of the IRS to investigate and revoke the non-profit status of credit counseling agencies who were taking advantage of their non-profit status to take advantage of consumers. You can see the list deletion here. (not all are credit counseling agencies) For a complete list of the efforts currently underway to identify these companies, click here.
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