WASHINGTON (2/27/15)--A company advertising debt relief services but failing to provide them is the subject of a federal district complaint brought this week by the Federal Trade Commission (FTC).
Payday Support Center LLC, now known as PSC Administrative LCC, is alleged to have targeted consumers to resolve outstanding payday debts but provided little to no relief.
According to the complaint, the defendants are alleged, starting in 2012, to have used the Internet, radio and telemarketing to target consumers with multiple debts on short-term, high-interest payday loans.
The FTC alleges that the defendants pushed consumers into enrolling in their "financial hardship program," claiming they would negotiate with the lenders to reduce consumers' payments and eliminate their debt. They advised consumers to stop making direct payments to their lenders and to pay money to the defendants instead, promising that the loans would be paid off within the next few months.
In reality, the FTC alleges, the defendants provide little or no debt relief services for their clients, and their limited actions do not generally eliminate or even reduce most clients' payday loans.
In filing the complaint, the FTC is seeking to permanently stop the defendants' allegedly illegal conduct, as well as a monetary judgment for refunds to return to consumers defrauded by the operation.