New York has long been progressive in protecting consumer rights. When Eliot Spitzer was the Attorney General, he went after Wall Street and insurance companies. Now, Andrew Cuomo continues that legacy.
New York’s AG has filed lawsuits against two debt settlement companies, Credit Solutions of America and Nationwide Asset Services. The AG contends that these companies make false and misleading promises. In fact, between 1/3 of one percent and one percent of consumers actually get the savings advertised.
Two important parts of the story:
- According to AG Cuomo, “These companies claim to be the light at the end of the tunnel, but time after time they have shown that they only add to the burdens of Americans dealing with debt.”
- Many consumers have faced continued harassment and lawsuits by their creditors, despite CSA’s promise to intervene on their behalf.
In English, this means that the companies are making things worse for consumers and are not ending the harassment that they claim they will end. Why not? Because not only do creditors not have to work with these companies, in most cases they do not work with any debt settlement company.
Be wary of these tv ads and their slick pitches. Most debt settlement programs do not work!