Federal Court Issues 'Time-Out'/Asset Freeze Order On Outfit That Allegedly Ripped Off Homeowners With False Low-Interest Debt Consolidation Offers

The Federal Trade Commission recently announced:

• At the request of the Federal Trade Commission, a U.S. district court has temporarily halted a debt relief operation that allegedly charged cash-strapped consumers hundreds of dollars based on the false claim that it could obtain rates as low as zero percent.
  
  The agency estimates that the operation’s gross revenues since January 2008 were at least approximately $11.8 million, according to documents filed with the court. The FTC complaint names as defendants Southeast Trust, LLC (formerly known as The Debt School, LLC, also doing business as Financial Freedom Credit Counseling), and the companies’ principal, Paul A. Wexler. The court order stops the illegal conduct and freezes the operation’s assets while the FTC moves forward with the case.
  
  According to documents the FTC filed with the court, the defendants “callously take advantage of consumers who seek debt relief services in this difficult economic environment.”
  
  The complaint alleged that the defendants claimed to be a non-profit group that targeted consumers with robocalls, and with ads on websites such as southeasttrust.com and thedebtschool.com. The defendants promised a single monthly payment, an interest rate ranging from zero percent to six percent, and that consumers would be debt free in three to five years.

For the FTC press release and links to some available court filings, see At FTC’s Request, Court Halts Operation That Allegedly Deceived Consumers with Bogus Debt Relief Services (Defendants Routinely Called Consumers on the Do Not Call Registry, Complaint Alleges).