Debt articles NEWS

SOUTH CAROLINA: A Debt consolidation company in South Carolina forced to pay back $839,000 back to their customers

Published by admin on March 10, 2010

SOUTH CAROLINA: A Debt consolidation company in South Carolina forced to pay back $839,000 back to their customers

A debt consolidation company located on the West Coast is now forced to pay back $839k for overcharging few hundred customers from South Carolina. This news is just perfect for those people since they are currently having problems with debt.

The company which has the problem is called Freedom Financial Management Inc and it is located in California and it agreed to pay back the funds which were charged as excessive fees for the credit counseling services that they were offering. The case was settled between the debt consolidation company and the S.C. department of Consumer Affairs.

This is considered to be the largest recovery that the agency ever made from a company which is located in a different state. The credit counseling laws of the state of South Carolina is considered to be one of the strictest in the United States. This translates into the facts that a company needs to get a license to work in SC and to limit their fees they charge to certain levels. A debt consolidation company in South Carolina can not charge more than $50 for the first consultation they give out to the consumers.

The Financial Freedom Management company was not even licensed to work in the state of SC and the fees that they charged were above the limits imposed by the state’s laws.

This way the people were paying some huge fees, when they could have used that kind of money to cover the debt that they have.

They were charging residents a percentage of the debt they have and for example they charged one person $29K. However most people will receive back $1,000 – $2,000.

Ever since the state laws of South Caroline were changed (which happened back in 2005) the Department of Consumer Affairs managed to recover more than $2.5 million dollars and give them back to their consumers.

This is why we definitely ask you to get a quote from more than one debt consolidation company, so that you will select the one that has the lowest fees. And also before actually signing up you should do some research regarding the background of that company.

Start living a debt free life by signing up for the debt consolidation company that we promote by using the form located above this article!

Readers Rating: