December 01, 2011
/24-7PressRelease/ -- Florida's Attorney General (AG) and the Federal Trade Commission (FTC) are investigating a Margate, Florida debt-relief business, United Financial Systems, after hundreds of complaints were lodged against the company in a little over a year. The allegations against the company primarily center on clients who hired the company to resolve debts on their behalf but continued to face financial woes.
Specifically, customers signed up to have United Financial Systems negotiate with creditors on their behalf to consolidate debts into one monthly payment. Under the agreement, United Financial would take a portion of the monthly payment as a servicing fee and then pass the remaining funds on to the customer's creditors.
However, most of the more than 300 clients who complained to Florida's AG alleged that the money given to United Financial was not used to pay down their debt; instead, the company kept their money, leaving customers out thousands of dollars they had paid to United Financial and still desperate for
debt relief. United Financial has denied any wrongdoing, but the AG's office has given them until the end of August, 2012 to issue refunds to customers.
Unfortunately for cash-strapped Floridians, the United Financial scandal is all too common among debt-relief companies. There have been countless allegations of fraud, usury and other misuses of client funds made against debt consolidation and negotiation businesses. While some of these companies might actually provide legitimate services, they can be a risky proposition for clients who are unable to pay their debts.
If you are facing a mountain of debt, evaluate which debt relief option -- debt consolidation, negotiation assistance or personal bankruptcy -- may be best suited to meet your needs. To learn more about each of these options and for help figuring out which one is right for you, speak with a skilled bankruptcy attorney in your area.
Article provided by Alan J. Fisher, P.A.
Visit us at
www.alanjfisher.com---
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