Charges Filed Against Michigan Debt Scammer
Regular readers of this blog know that I often write about bogus debt elimination programs. Enforcement actions by regulatory authorities against such companies are few and far between, but recently authorities in Michigan have filed felony charges against a person who ran a debt elimination scam there. Already serving a four-year prison sentence in Florida for Medicare fraud (this guy gets around!), the perpretrator now faces a slew of additional charges that should keep him behind bars for a while.
The scammer “allegedly represented that clients can legally eliminate credit card debt forever within one year of entering his program by making no further credit card payments and without debt consolidation, negotiation with credit card companies, or filing bankruptcy.” Sound familiar? That describes the bogus “debt elimination” scam to a tee. Approximately 100 victims lost between $1,500 and $10,000 in the scam.
Let’s hope we see a few more busts like this in the near future. It’s time the authorities attacked the debt elimination scammers the way they’ve attacked credit repair companies.