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Following Lawsuit, Court Freezes Assets of United Credit Adjusters

By Evelyn Lee
10/31/2008
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A temporary restraining order has frozen the assets of United Credit Adjusters, and three other firms thought to be related to it, following a lawsuit in which the state accused the companies of taking payment from consumers during consultations without providing promised financial services.

The temporary restraining order freezes the assets of the companies and bars the defendants from a number of actions, including the disposition of any assets and the altering or removal of any books or records that relate to the advertisement or sale of credit repair, credit counseling, debt adjuster and bankruptcy filing services, according to the division.

The order follows a five-count complaint that the state filed Oct. 14 in Monmouth County, the division said. The lawsuit alleges that the defendants required payment in advance during initial consultations, but failed to provide consumers with promised credit counseling, credit repair or bankruptcy services after receiving payment. Bankruptcy Masters Corp., United Counseling Association Inc. and Credit Bureau Controls Corp. also were named in the suit.

To date, the state Division of Consumer Affairs says it has received approximately 118 consumer complaints either directly from the customers, the Better Business Bureau or the Monmouth County Consumer Affairs Office.

The court has scheduled the hearing on the state’s request for a preliminary injunction, appointment of a receiver and asset freeze for Dec. 9, the division says.

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