Sued for Fraud – Federal Debt Assistance Association, LLC and Financial Document Assistance Administration, Inc. “FDAA
The CFPB alleges that FDAA’s so-called “debt validation” programs violated the law by falsely promising to eliminate consumers’ debts and improve their credit scores in exchange for thousands of dollars in advance fees.
The Consumer Financial Protection Bureau (CFPB) October 12, 2017 filed suit in federal court against Federal Debt Assistance Association, LLC., Financial Document Assistance Administration, Inc. “FDAA” and Clear Solutions, Inc. and their owners for falsely presenting FDAA as being affiliated with the federal government.
“FDAA and its owners lied to financially vulnerable consumers to line their pockets with cash,”
“Today’s lawsuit seeks to stop these deceptive practices, impose civil money penalties, and return to cheated consumers the fees they paid to these companies.” CFPB Director Richard Cordray.
Vincent Piccione, David Piccione, and Robert Pantoulis own or owned the FDAA companies and Clear Solutions.
The CFPB’s lawsuit alleges that the companies lied about having an affiliation with the federal government to lure financially vulnerable consumers into paying thousands of dollars in illegal advance fees.
- CFPB alleges the following illegal practices:
• Deceiving consumers about an affiliation with the federal government.
• Deceiving consumers about the companies’ debt-relief and credit-repair services abilities.
• Failing to make proper disclosures about not paying debts: FDAA failed to disclose that not making payments may result in the consumer being sued by creditors or debt collectors and may increase the amount of money the consumer owes due to the accrual of fees and interest.
• Taking illegal advance fees for debt-relief and credit-repair services.Click here for a copy of the complaint
Who is the CFPB? The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.
Unfortunately Pres. Trump has taken steps to gut CFPB in order to protect big business.
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
In Case You Missed It
Published On: March 31, 2024
Into the Shadows: Unraveling the Dark World of Fraud, Schemes, and Scams The Sneaky World of Fraud and Scams: How They Work and Why You Should Be Careful Fraud and [...]
Published On: March 8, 2024
In today's consumer landscape, credit cards are the normal tools for managing finances and making purchases. However, having credit card debt can lead to financial stress and vulnerability to predatory schemes. Recognizing the importance [...]
Published On: December 29, 2023
The article titled "Dangers of Using Public Wi-Fi Networks" posted on Galloptech Group's blog offers a comprehensive and insightful exploration of the risks associated with using public Wi-Fi networks. Here's an outline of what makes [...]
Published On: July 24, 2022
Want to avoid dishonest debt collectors? Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC is highlighting resources [...]
