Complain about a product or service

Ohio Sues "Credit Counselor" For Deceiving, Threatening Consumers

Debt Freedom Foundation Took Money, Provided No Services, Suit Charges

July 12, 2006

Credit Counseling • Equifax Subsidiary Agrees to Settle FTC Charges • Credit "Repair" Company Agrees to Settle FTC Charges • New Jersey Sues Credit Repair Agencies • States And FTC Crack Down On Credit Repair Scams • AmeriDebt Founder Settles FTC Charges • FTC Charges Home Buying Operation With Credit Repair Scheme • FTC Charges Express Consolidation Misleads Consumers • Debt Free Agrees to West Virginia Refunds • Ohio Sues "Credit Counselor" For Deceiving, Threatening Consumers • Debt Management Telemarketers Settle FTC Charges • FTC Shuts Down 20 "Credit Repair" Schemes • FTC Sues "Debt Elimination" Programs • AmeriDebt Founder Settles FTC Charges for $35 Million • IRS Plans to Yank Tax-Exempt Status of 20 Credit Counselors • IRS Revokes Tax-Exempt Status of Four Credit Counseling Agencies • Three Debt Management Firms Settle Federal Charges • AmeriDebt To Close as Part of FTC Settlement • Credit Counseling Riddled With Fast-Buck Promoters, Congress Finds • Credit Counselors Not Always What They Seem • Credit Counseling Scams On the Rise • Lenders Ratchet Down Payments to Credit Counselors --- • More about Credit Counseling

Ohio has filed suit against a Columbus man on charges of deceiving and bullying area consumers into paying him thousands of dollars for credit counseling services he didn't perform and isn't authorized to sell in Ohio, violating several sections of Ohio's consumer protection law.

Attorney General Mike Petro filed the lawsuit in Franklin County Common Pleas Court against Robert E. Haines, who also does business under the name Debt Freedom Foundation, alleging numerous violations of the state's Consumer Sales Practices Act and Credit Services Organization Act. Haines rebuffed attempts by the Attorney General's Office to mediate complaints the office received about his company, Petro said.

"This man dishonestly held himself out as a credit counseling services organization that helps people get out of debt," Petro said. "In fact, it was a ruse to convince unsuspecting homeowners to refinance their homes and give him a portion of the borrowed money. Mr. Haines preyed on good people's trusting nature, and our action in court will bring him to account for that."

Petro said his investigators found that the typical counsel Haines gave to financially overextended customers was to borrow money against the equity in their homes and use the funds to pay their other debts, plus Haines' fee. When prospective customers balked at his advice, Haines allegedly bullied them to pay him even when he provided no service, the investigators found.

According to the suit, Haines violated state law and rule by charging for services not performed; obtaining credit reporting agency reports on customers without their permission; misrepresenting his fees; threatening customers and refusing to return their personal documents; not providing his customers a statement of their rights as credit-services buyers.

He is also accused of failing to execute properly worded contracts that included clearly written terms and conditions, as well as customers' right to cancel in three days; offering money to customers for business referrals; not obtaining a required surety bond before doing business in Ohio; not registering with the state Division of Financial Institutions as a credit services organization; and not registering with the Ohio Secretary of State.

Petro asked the court for an injunction against Haines, fines of $25,000 per violation, and financial repayment to consumers who lost money to Haines.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |