Is there some type of consumer protection act which can help me sue creditors for lying to me?

Question: I worked with a consumer credit counseling agency who collected a lot of fees from me and said they were going to make my credit card debt settle for half of what I owed. Unfortunately, they didn’t and now I am out the money that I paid them, plus I still have credit card debt. Are there some kind of federal consumer credit protection acts that can help me sue the credit card counselors who lied to me?

Response: Title IV of the Federal Consumer Credit Protection Act regulates credit repair agencies. They prohibit credit repair agencies from making false promises to consumers Credit counseling agencies are also prohibited form making misleading representations of the services they are offering, and from collecting payments for services that are not fully performed. Thus, under the terms of the Federal Consumer Credit Protection Act, it seems as though the credit repair agency you worked with violated your rights. Under the terms of Section 409 of the Consumer Credit Protection Act, you may be entitled to actual damages you sustained as well as potentially to punitive damages and your attorney’s fees.

You should consult with an experienced civil litigation attorney right away to discuss your situation and that attorney can help you to determine the best course of action for recovering your money from the credit-counseling agency.

Answered by Christy Rakoczy

Additional Resource: Credit Card Debt Settlement

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