Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Massachusetts credit counseling agency fined $4.2 million

« Mortgage interest rates just going higher | Main | Real estate price break for celebrities is the latest marketing tool »

November 07, 2005

Massachusetts credit counseling agency fined $4.2 million

Cambridge Credit Counseling, a Massachusetts credit counseling agency was found guilty in misleading thousands of its clients and transferring several millions of dollars to "for profit" companies that belong to the same owners. The company owners must pay $4.2 million in penalties.

Cambridge Credit Counseling can now charge maximum of $75 to enroll in credit counseling, plus a monthly at the maximum of 10 percent of monthly payments, capped at $50. Before the lawsuit, Cambridge charged an up-front fee equal to one month’s payment, on average was around $300.

Posted in Credit Counseling at November 7, 2005 01:44 PM

Email this entry to a friend

Welcome

Bad Credit Advisor online magazine provides daily news about credit, debt and mortgage. We aren't paid to mention specific deals or products. We cover what we think is interesting as industry professionals ourselves.

Information

About
Contact
Disclaimer

Syndicate

RSS 2.0 Feed