Approximately 17,000 consumers were victims of a predatory lending scam run by a company known as “Rome financing.” The company focused primarily on military personnel, operating many of its scams at kiosks in malls near military bases. Consumers would apply for loans to help fund purchases for computers, televisions, game consoles and other similar items. If approved, the consumer would often face steep finance charges that were not fully disclosed in the application.
This lack of disclosure coupled with deceptive and abusive collection methods for debt that wasn’t even owed led the Consumer Financial Protection Bureau along with 13 state attorneys general to obtain $92 million in debt relief from the company, according to a recent report by the Department of Defense News.
This scam is just one of many that can lead to financial problems for Americans across the country. In some cases, debt can become so unmanageable that consumers may be tempted by debt consolidation scams. These scams can further compound the issue and leave you with even more financial problems.
Those who are struggling financially should take a moment to realize that they are not alone. Debt plagues many Americans, and solutions are available. For some, bankruptcy can offer a fresh financial start. Before deciding to move forward with an application for relief through bankruptcy, it is wise to seek the counsel of a debt relief attorney. This legal professional will review your situation and help you to make a decision that increases your odds a better financial future.
Source: U.S. Department of Defense, “Bureau Gets Service Members Debt Relief From Predatory Lender,” July 29, 2014