Is Ameridebt still in business? Ameridebt was forced to shut down its debt consolidation operation as part of a settlement with the FTC. The Federal Trade Commission charges that it deceived consumers into paying at least $170 million in hidden fees. The FTC charged Ameradebt with misrepresenting that it was a non profit credit consolidation company and that it show consumers how to manage their money for no up front fees. The FTC also charged Ameridebt with deceptive business practices and with violating the Gramm Leach Bliley act by not providing customers with the required privacy notices.

Is debt consolidation through a credit counseling company bad?

Many consumer credit counseling programs are under the gun these days. Many are being sued by their state attorney generals. The IRS and the FTC are investigating their supposed “non-profit” status. Be very careful before you do business with an consumer credit counseling company. Make sure that they are not under investigation before you sign up. You may be left high and dry.

How can I check out a credit counseling company?

If you want to check out a credit counseling company you can go to the BBB or local consumer protection agency. Keep in mind that most people do not go the extra mile when they have a complaint against a debt consolidation company. You should also check out the FTC and your state attorney general to see if there are any complaints against them.