Debt Relief Scam Report: GAO Calls Practices 'Fraudulent, Deceptive And Abusive'

Debt Relief Scam Report: GAO Calls Practices 'Fraudulent, Deceptive And Abusive'

A new report by undercover government investigators bolsters longstanding concerns that companies promising to help consumers overwhelmed by credit card and other debts often turn out to be financial predators that charge high fees but deliver little or nothing in return.

When investigators for the Government Accountability Office posed as distressed consumers seeking help, so-called debt management companies gave them wildly exaggerated descriptions of the firms' success rates and sometimes promised savings of as much as 50 cents on the dollar, Gregory Kutz, the GAO official who ran the investigation, told Congress on Thursday.

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