A Louisiana debt relief company that offered to repair consumersâ credit card debt histories has been hit with a cease-and-desist order by the stateâs Attorney General for allegedly failing to provide a necessary $100,000 bond required under state law.
The cease-and-desist order was issued to A American Debt Consolidation in New Iberia on Jan. 24 by the Louisiana Department of Justice, Office of the Attorney General, Public Protection Division, Consumer Protection Section. The order was issued after the Better Business Bureau of Acadiana reported that the debt relief company advertised credit repair services on its website. The BBB regularly monitors Acadiana business that require special state licensing to ensure that they comply (âCease-and-Desist Order Issued for Credit Repair Company,â The Advertiser, Jan. 30, 2012).
In light of the finding and the subsequent order from the Attorney Generalâs Office, the BBB of Acadiana is warning residents to use âextreme cautionâ when doing business with credit repair companies that promise to erase bad credit histories:
- Beware of promises that your credit history will be clean following credit repair services
- Beware of companies that charge advance fees before performing any service
- Do not follow the instructions of companies that tell you to avoid contacting the three major credit reporting agencies
- Do not pay credit repair companies for services you can perform for free
- Do not follow a credit repair companyâs suggestions to use and Employee Identification Number instead of your Social Security number to invent a new credit history
The BBB cautions residents that, in general, the only way to improve bad credit is to pay bills on time and legally dispute inaccurate information appearing on credit history reports.
Residents that believe they have been the victim of a credit repair scam or wish to file a complaint against a debt relief company or a credit repair company can visit the Attorney Generalâs office at ag.state.la.us. To file a complaint or report a scam with the Better Business Bureau, residents can visit bbb.org.
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