According to the Federal Trade Commission one of the largest US

debt consolidation

companies has been caught breaking the federal laws by illegally misleading the consumers about their non-profit status, prices and services, telemarketing millions of consumers to their net. The Federal Trade Commission now has filed a lawsuit against the

debt consolidation

company in question, demanding the freezing of the company’s assets and close-down of its illegal businesses.

The owner of the

debt consolidation

company “America’s Premier

debt consolidation

Company”, a Florida attorney, has been using a sham nonprofit organization to break the telemarketing rules by falsely stating to be a nonprofit organization. They also deceived the customers about the cost of their services (only $49 per month), about the application fee. The debt consolidators claimed to minimize the interest rates and monthly payments of the debtors, or total amount of debt, or even promised to improve the credit score.

In reality, a monthly administrative fee is not the only charge they make. The company charges a fee that equals to the monthly payment collected from the consumer’s first payment. The company exaggerates the estimated savings, if any; their services do not help reduce the debtor’s monthly payment or total

debt

; and they do not do anything to improve, or prevent deterioration of a debtor’s credit record, history, or rating.

The defendants are attorney Randall L. Leshin, Randall L. Leshin, P.A., d/b/a Express Consolidation, Express Consolidation Inc., and Consumer Credit Consolidation Inc. and its president, Maureen A. Gaviola. The complaint was filed in the U.S. District Court for the Southern District of Florida.