Judge Nixes FTC Claims Over Debt Negotiators' Ads

Law360, New York (March 12, 2012, 5:42 PM EDT) -- A Texas federal judge on Monday threw out the Federal Trade Commission’s claims that a handful of debt negotiation companies misrepresented how much they could reduce a customer’s debt and the amount of time in which they could complete the process.

U.S. District Judge David Godbey found that the companies’ representations to customers that claimed they could reduce a customer’s debt by 30 to 60 percent in 18 to 36 months were reasonable and not in violation of the Federal Trade Commission Act.

"The savings claims...
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Case Information

Case Title

Federal Trade Commission v. Financial Freedom Processing, Inc. et al


Case Number

3:10-cv-02446

Court

Texas Northern

Nature of Suit

Other Statutes: Other Statutory Actions

Judge

David C Godbey

Date Filed

December 2, 2010

Government Agencies

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