June 6, 2004...11:15 pm
A Big Credit Counselor Files for Bankruptcy Protection
A Big Credit Counselor Files for Bankruptcy Protection: “AmeriDebt, a credit counseling service that has been accused of misleading hundreds of thousands of customers, filed for bankruptcy protection on Saturday in Maryland.”
Oh, the irony. Nonetheless, it serves them right. They don’t deserve their tax-exempt status — taking money from indebted consumers and raking in huge profits. It’s an awful racket that must be stopped, and thankfully, the U.S. Senate has acted. As the article says, “The credit counseling industry has been under investigation by a Senate subcommittee, which issued a report in March saying that some companies had abused their tax-exempt status to squeeze profits from indebted consumers. The report urged the Internal Revenue Service and the Federal Trade Commission to step up enforcement efforts.”
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