Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC identifies alleged operators of “Obama-approved” debt relief scam, (Feb 11, 2015)

By Greg Hammond, J.D.

The FTC named two additional defendants in an action against American Bill Pay Organization and American Benefits Foundation on January 29, 2015, for allegedly charging consumers $900 to $1,100 in up-front fees for false “Obama Approved” debt relief and credit repair services (FTC v. Savariau, File No. 132 3205, Case No. 1:14-cv-01414 (RBW)).

The Commission filed its initial complaint in August 2014, alleging that unknown parties doing business as American Bill Pay Organization and American Benefits Foundation offered consumers a program that would supposedly eliminate or reduce the balance of their unsecured or secured debts and improve their credit. The program allegedly claimed to administer a fictitious government assistance program that would pay “as much as $25,000 towards consumers’ debts.” However, after consumers paid up-front fees of $900 to $1,100, their bills were frequently left unpaid by the organizations and their credit ratings, scores, or limits were not improved, the FTC alleged.

In its amended complaint for permanent injunction and other equitable relief, the Commission has named Sereika Savariau and Lawrence Goodison as defendants. The complaint alleges that Savariau and Goodison operated the purported scam from Jamaica, through websites like www.americanbillpay.org and www.benefitsfoundation.org. The Commission is attempting to permanently shut down the supposed scam and to obtain refunds for consumers that paid for the “bogus” debt and credit services.

Companies: American Bill Pay Organization; American Benefits Foundation

News: ConsumerProtection FederalTradeCommissionNews