CROOK ALERT!! Credit Solutions of America and Nationwide Asset Services Accused of Fraud

5-20-09 New York state attorney general, Andrew Cuomo sued two big debt settlement companies accusing them of fraudulent and deceptive business practices and false advertising. The firms charged customers before doing any settlement work. Credit "Solutions" enrolled and charged 18,000 customers in New York in the past 5 years, but actually settled the debts of fewer than 2,000 of them. Nationwide signed up 1,981 customers in three years but only 64 completed the program.

Credit Solutions, founded in 2003, by Doug Van Arsdale in Richardson, Texas, has said it could shrink a customer's credit card debt by 75 percent. The company sent customers a 60-item list of ways to raise money. First is "refinance home" followed by by "get a second mortgage." Other tips included "baby sit, sell plasma,ask for a raise, get off before your usual station and walk, cut down your drinking, drink tap water and buy frozen."

Based on a NY Times article 5-19-09 by Davie Streitfeld.