Web-based debt relief operation settles FTC charges

17.10.2012
The owner of 17 websites purporting to offer debt relief to consumers has agreed to a settlement with the U.S. Federal Trade Commission that prohibits him from making deceptive claims.

Ryan Golembiewski, owner of United Debt Associates of Columbus, Ohio, to settle the FTC charges that the company published deceptive advertisements about debt reduction, the agency said in a press release. The settlement must be approved by a judge.

United Debt Associates functioned as a lead generator for debt settlement companies, the FTC said.

The company used websites such as Legitimatedebtsettlement.com, Debtreliefemergency.com, DebtDecreaser.com, Freedebtreductionhelp.com, and Disputedebts.com to collect contact information from customers, the FTC said. Customers calling a toll-free telephone number would often be routed to telemarketers for debt settlement providers, the FTC said

United Debt Associates earned nearly $25 per lead generated for debt settlement companies, the agency said.

The company's advertisements suggested customers could reduce their debt by 50 to 80 percent, according to a complaint the FTC filed in September in U.S. District Court for the Southern District of Ohio. Those claims were unsubstantiated, the agency said.