|
"This is the time of year when
consumers are most likely to rack up credit card debt. It's critical
that we take an aggressive approach to help people who are trying to
dig their way out of debt get the information they need to avoid
being set back even more by a dishonest debt management service,"
Blagojevich said.
The state is bringing its debt
counseling education materials and information to malls across
Illinois from Wednesday, Dec. 17, until Tuesday, Dec. 23. Booths
staffed by members of the Illinois Department of Financial
Institutions' Consumer Credit Division will provide consumers with
contact information on licensed debt management services and on
their rights as consumers.
"We want to be as accessible as
possible -- and what better venue than a mall during the holiday
shopping madness?" said Roxanne Nava, director of the Department of
Financial Institutions.
Since July, the IDFI has shut down 67
companies for not performing debt management services though that is
what they purported to be. An additional 16 companies, with a
combined total of 2,389 Illinois customers, have been penalized for
operating without licenses and for violating a number of Illinois
regulatory rules, including failure to disclose all fees and terms
and exceeding the permitted limit on fee amounts. The companies have
been forced to pay more than $10,000 in restitution to consumers and
more than $66,000 in penalties.
Illinois law limits the amount debt
management companies can charge in setup and monthly fees. Initial
fees for service cannot exceed $50, and the median fee a company
charges on a monthly basis cannot be more than $30.
One company, Maryland-based AmeriDebt,
represented itself as a not-for-profit credit counseling service in
Illinois but charged customers an average of $305 in initial fees
and $35 a month in ongoing fees. The company also failed to register
with IDFI, the entity responsible for regulating credit and debt
management services. AmeriDebt has since been shut down in Illinois,
and the Federal Trade Commission and the states of Missouri and
Texas have initiated action against the same company as a result.
[to top of second column in
this article] |
"Unfortunately, when people are most
desperate for help, they are the easiest targets for scam artists.
This campaign to spread information about legitimate debt counseling
services will help reduce the number of victims this year,"
Blagojevich added.
Consumers can obtain information from
IDFI staff at the following locations:
-
Wednesday, Dec. 17, 10 a.m. to 5 p.m.:
Mega Mall, 2502 N. Milwaukee Ave., Chicago
-
Thursday,
Dec. 18, 10 a.m. to 5 p.m.:
Mega Mall, 5220 S. Pulaski, Chicago
-
Saturday,
Dec. 20, 10 a.m. to 5 p.m.:
Mega Mall, 5220 S. Pulaski, Chicago
-
Sunday,
Dec. 21, 10 a.m. to 5 p.m.:
Mega Mall, 3110 W. 26th, Chicago
-
Monday,
Dec. 22, 10 a.m. to 5 p.m.:
University Mall, 1237 E. Main, Illinois Route 13, Carbondale; and
Mega Mall, 5220 S. Pulaski, Chicago
-
Tuesday, Dec. 23, 10 a.m. to 5
p.m.:
Cherryvale Mall, 7200 Harrison Ave., intersection of Interstate 39
and Belvidere, Rockford
The department will add more locations
during late December and early January. For an updated list or for
information about licensed debt management and payday loan
providers, please visit the IDFI website at
www.state.il.us/dfi or call
(312) 814-2000 or (217) 782-2831.
[News release from the
governor's office]
 |
