The Consumer Law Group, a bogus Florida debt relief law firm that falsely promised it could reduce consumers’ debts by more than half, has been banned from providing debt relief services in North Carolina and forced to give up $1.2 million in charges and refunds.

Talk show host and former broker Suze Orman has been called out over her promotion of a “credit building” prepaid debt card with her name on it. While the Approved Card charges users a variety of fees and does nothing to build users’ credit histories, editors for Oprah’s magazine let her write her own financial advice column blatantly promoting her product at length without providing context for Orman’s motivations.

There are plenty of reputable debt relief companies out there that can help you get a handle on your debt and help you become debt-free as soon as possible. But there are also some debt relief scams out there that prey on unwitting victims and take their money without providing any debt help, often leaving consumers worse off than before. Here are three quick tips for spotting and avoiding debt relief scams.

Realtors and tax advisors are urging homeowners who are underwater or facing foreclosure to consider a short sale to take advantage of the expiring Mortgage Forgiveness Debt Relief Act, which allows homeowners to avoid paying income taxes on the amount of canceled or forgiven debt from foreclosures, short sales, refinances, and mortgage debt relief services that result in principal forgiveness.

Talk show host and former broker Suze Orman is promoting a prepaid debit card with her name on it that will charge you at least $36 a year but does nothing to build your credit history. Although Orman tells consumers “You can bank on it,” several financial experts, including one who referred to Orman’s card as the “cream of the crap,” have publically slammed the card and warned consumers to avoid it.

Debt from home mortgage loans and credit cards can be overwhelming if you’ve been laid off or are struggling to make ends meet. Sometimes people can get so overwhelmed by mortgage and credit card debt that they need to consult a professional who can provide debt relief services. Unfortunately, like in all businesses, some of [...]

Colorado Attorney General John Suthers announced Monday that his office had filed a consumer protection lawsuit against a Westminster-based debt settlement company for allegedly engaging in fraudulent debt management practices. According to the lawsuit, Prestige Financial Solutions and its principal, Amy Thompson, failed to comply with a series of disclosure requirements mandated by the Colorado [...]

A lawsuit filed by the Pennsylvania Attorney General’s Office against an Erie-based debt collection firm that used deceptive, intimidating tactics against consumers, including operating a fake courtroom, has been amended to hold the company’s owners personally liable for violations of consumer protection laws. Deputy Attorney General Leslie Grey filed the amended complaint in Erie County [...]

It’s January, which means federal income tax season is once again right around the corner. The tax code is long and complicated and covers almost every imaginable scenario, even debt relief. That’s right — if you received debt relief services such as credit card debt settlement or a mortgage modification in 2010, then you’ll likely be [...]

Fraudulent mortgage debt relief schemes that falsely promise to help troubled homeowners get mortgage modifications through the federal government ranked as one of the top scams of 2011 by the Better Business Bureau (BBB). The consumer information organization released it’s top 10 scams of 2011 on Wednesday, detailing the top scams from nine categories including [...]