False advertising: There is no “federal debt relief plan” for consumers

April 27, 2009

If you get an offer in the mail of a “federal debt relief” plan, throw it away.

Consumers are receiving a mailing — with a return address of

Washington, D.C. — that claims to be a “federal debt relief” plan. The offer looks very official and is fooling some consumers into thinking it was sent by the federal government. It was not.

WTAE News in

Pittsburgh recently did a story about this debt relief offer. After investigating the mailing, reporter Aaron Saykin discovered the debt relief offer is actually from a for-profit debt settlement company that is in no way affiliated with any government agency.

You can read and see a video of that story here.

As of now, there is no federal debt relief plan for consumers facing credit card debt.

Anyone who struggling with debt should contact a non-profit credit counseling agency that is affiliated with the National Foundation for Credit Counseling and is in good standing with the Better Business Bureau.

Avoid any company that initiates contact with you, charges large upfront fees and is not a non-profit.

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