|
NEWARK
– Following the filing of a lawsuit
earlier this month by the Office of the
Attorney General and the Division of Consumer
Affairs, Judge Thomas W. Cavanagh has issued
a Temporary Restraining Order against defendants
United Credit Adjusters, Bankruptcy Masters
Corp., United Counseling Association, Inc.
and Credit Bureau Controls Corp. which,
among other restraints, freezes their assets.
Under
the Temporary Restraining Order issued on
Wednesday, the Defendants are temporarily
enjoined and restrained from:
-
Removing, selling, encumbering, transferring
or engaging in any act of disposition
of any assets . . . including but not
limited to all deposits or any monies
paid by consumers . . . except as reasonable
and necessary for day-to-day business
expenses;
-
Destroying, concealing, altering, transferring,
disposing or removing in any manner any
books or records . . . that directly or
indirectly relate to the advertisement
and/or sale of credit repair, credit counseling,
debt adjuster and bankruptcy filing services;
- Failing
to make and/or keep any books or records
related to these services; and
-
Engaging in or doing any acts or practices
in violation of the New Jersey Consumer
Fraud Act and the Regulations Governing
General Advertising.
“We’re
pleased the court has granted our request
for temporary restraints. We want consumers
protected as our investigation into the
alleged violations committed by these defendants
moves forward,” Attorney General Anne
Milgram said.
In
its five-count complaint filed on October
14, 2008 in Monmouth County, the state alleges
that the defendants required payment in
advance during initial consultations and
then, after receiving payment, failed to
provide consumers with credit counseling,
credit repair and/or bankruptcy services.
Contrary to defendants’ representations
and advertisements, consumers’ credit
scores were not raised nor was negative
information eliminated from credit reports.
To
date, the state Division of Consumer Affairs
has received approximately 118 consumer
complaints either directly or from the Better
Business Bureau (“BBB”) as well
as the Monmouth County Consumer Affairs
Office, which began the investigation of
United Credit Adjusters. United Credit Adjusters,
which has maintained business and mailing
addresses in Lakewood, Howell and North
Manasquan, was believed to be in operation
even after its New Jersey corporate status
was revoked in May 2008 for failure to file
annual reports. At present, it is believed
that United Credit Adjusters may be operating
as United Credit Counseling Association,
Inc.
The
court has scheduled the hearing on the state’s
request for a preliminary injunction, appointment
of a receiver and asset freeze for December
9, 2008.
“We
firmly believe that consumers were defrauded
by these companies. We’re taking action
to safeguard consumers and bring these defendants
into compliance with our consumer protection
laws and regulations,” said David
Szuchman, Consumer Affairs Director.
Deputy
Attorneys General Jeffrey Koziar and Cathleen
O’Donnell of the Consumer Fraud Prosecution
Section are representing the state in this
action.
Consumers
who wish to file complaints can contact
the Division of Consumer Affairs online
at www.njconsumeraffairs.gov
or by telephone at 1-800-242-5846
(toll-free within New Jersey) and 973-504-6200
from all locations.
#
# # |
