CFPB Sues Baltimore Debt Relief Firms on Fees, Deceptive Claims

Two Baltimore debt relief companies were sued Oct. 12 by the Consumer Financial Protection Bureau on allegations they falsely claimed affiliation with the U.S. government.

The suit in the U.S. District Court for the District of Maryland said Federal Debt Assistance Association, LLC and Financial Document Assistance Administration, Inc., both operating as FDAA, promised to wipe out consumers’ debts and boost their credit scores in exchange for fees (Cons. Fin. Protection Bureau v. Fed. Debt Assist. Ass’n LLC, D. Md., 17-cv-02997, complaint filed 10/12/17).

The CFPB said the companies violated Dodd-Frank Act prohibitions against deceptive practices, as well ...