Thursday, May 09, 2013
NY State goes after debt consolidation companies; CA goes after JP Morgan
The Washington Post and Associated Press are reporting that New York State will prosecute officials of “debt-fixing” (debt consolidation) companies that opened after the financial crisis of 2008. One of the largest was Mission Settlement Company. The link to the story is here.
Retirees are often contacted to go to work for such companies. I encountered a few such solicitations. It’s easy to make it sound like you’re “helping people”. It sounds like extended hucksterism.
The federal enforcement arm is the Consumer Financial Protection Bureau, link here. The agency says it is hiring people for “externships”. That’s a new term for me.
The AP is also reporting that the state of California is suing JP Morgan for debt collection practices, which included “robo-signing” documents and filing letter lawsuits without properly serving consumers. The San Francisco Chronicle story is here.