Three out-of-state debt relief companies that were providing credit counseling services to consumers in Idaho without a state license have agreed to refund their former Idaho customers almost $400,000, announced Gavin Gee, director of the Idaho Department of Finance (“Department of Finance Reaches Agreements With Out-of-State Debt Settlement Companies,” Sept. 19, 2008).

The companies’ settlement agreement with the state of Idaho requires Texas-based Debt Relief USA, Inc. to issue refunds in the amount of $201,831, Arizona-based Debt Settlement USA, Inc. to refund $111,240, and Massachusetts-based DMB Financial to return $60,796.

As the rapidly expanding debt relief industry spawns companies both lawful and fraudulent, and more and more credit counseling and debt settlement outfits step up their business activity in the state, Gee is urging consumers to do their research and ensure that a company is properly licensed before signing up for any kind of debt management or debt reduction program.

Gee also recommends that consumers seek guidance from a trusted financial advisor before enlisting the help of a debt relief company.

“Consumers seeking debt relief services should avoid organizations that push debt settlement or debt management plans as the consumer’s only option before conducting a thorough assessment of the consumer’s overall financial situation,” Gee said.

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