FTC Shutters Bogus Texas Debt Reduction Co.

Law360, New York (August 23, 2011, 3:48 PM EDT) -- The Federal Trade Commission on Tuesday said a bankrupt Texas debt reduction company would close permanently as part of a settlement over claims that it scammed desperate consumers with up-front fees and false promises of improved credit scores.

Under the settlement, Debt Relief USA Inc., which is currently undergoing a Chapter 7 liquidation, is barred from doing any further business, and two executives, former Chief Operating Officer James Wojcik and former Director of Marketing and Director of Information Technology Valerie Leath, can no longer market any...
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