Here is another reason consumers must be vigilant when choosing debt relief companies for their credit card debts. There are many scams out there. The following story is a recap of an article that appeared in a recent edition of “My News LA.com”. The article entitled “Orange County man faces 20 years in prison for credit card debt scam” reinforces the fact that there are many companies offering debt relief services to consumers but are nothing more than scams.
According to the United States Department of Justice, A California man, Jeremy Nelson, pleaded guilty in federal court to an indictment alleging a conspiracy to commit mail fraud and wire fraud involving two companies known as Nelson Gamble & Associates and Jackson Hunter Morris & Knight. He admitted to operating bogus debt relief firms that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.
Nelson and his employees portrayed the debt relief companies like law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments, expecting the money to go toward settlements. Instead, Nelson and his co-conspirators took, at least, fifteen percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed fees.
The Principal Deputy Assistant Attorney General, Benjamin C. Mizer, head of the DOJ’s civil division, said that debt relief scams prey on vulnerable consumers trying to climb out of financial difficulties, and promised that the Justice Department will continue to clamp down on those taking advantage of consumers facing hard times.
Nelson faces up to 20 years in prison, prosecutors said. A sentencing date has yet to be scheduled.
Choose a company that offers a free consultation to examine your financial situation. Based on this analysis they can offer you a debt solution to suit your specific needs with no upfront fees.