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FTC Closes O.C. Debt-Negotiation Company

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Sep 26, 2008 4:42 am US/Pacific

FTC Closes O.C. Debt-Negotiation Company

SANTA ANA, Calif. (AP) ― The Federal Trade Commission has closed a debt-negotiation business after it allegedly told some customers to stop paying their bills.

The federal agency shut down Homeland Financial Services LLC of Santa Ana and Irvine on Thursday and says the business falsely claimed it would negotiate with creditors.

However, the FTC contends Homeland didn't contact creditors until two or three months after it signed up customers and told them to stop paying
their bills.

The FTC says the result for some of the customers led to lawsuits, bad credit reports and even bankruptcy.

It is believed that Homeland and several closely related businesses signed up more than 17,000 customers nationwide.
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Information from: The Orange County Register

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