Debt Negotiators Banned from the Business Forever
The Federal Trade Commission (FTC) has reached a settlement agreement with Debt Solutions, Inc.; DSI Financial, Inc.; DSI Direct, Inc.; Pacific Consolidation Services, Inc.. The settlement also includes the owners of the four companies, Kenneth Schwartz and Jennifer Whalen, and two of their managers.
The FTC allegations are simple, and all-too familiar. The companies apparently represented to debtors that they had special relationships with credit card companies and other creditors that would lower interest rates and reduce overall payments. Customers were “guaranteed” to save a certain amount of money, but no time frame was specified, so that the debtors might have to make payments for decades to realize the savings. The savings they did see typically came only from increasing monthly payments and not from any actual reduction in interest rates or fees.
Schwartz and Whalen agreed to a permanent ban on engaging in the debt negotiation or debt elimination business.
Two down…how many to go?
Tags: ATTORNEY, BANNED, BUSINESS, DEPT NEGOTIATORS, LAWYER