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Reported on Tuesday, February 9, 2010 8:49 PM

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This business has not been accredited by BBB.

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Based on BBB files, this business has a BBB Rating of NR

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Ameridebt Inc.

321 Ballenger Center Drive, Frederick, MD 21703, Frederick County
      
2455 East Sunrise Blvd., Suite 600, Ft. Lauderdale, FL 33304, Broward County
      
12800 Middlebrook Rd., Suite 400, Germantown, MD 20874, Montgomery County
      
1223 Annapolis Road, Suite D, Odenton, MD 21113, Anne Arundel County
      

(301) 515-7000
(301) 515-8000
(305) 341-3426
(800) 239-7503
(800) 315-3328
(888) 855-7891
(954) 568-0787
(301) 330-0654
(301) 330-0955 (FAX)

This company is in an industry that may require licensing, bonding or registration in order to lawfully do business. The BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

The BBB has processed no customer complaints on this company in its three-year reporting period.

Federal Trade Commission Settlement - March, 2004
Ameridebt, Inc. and the FTC have reached a Settlement Agreement regarding a complaint (File #0223171) entered by the Federal Trade Commission on November 19, 2003 in US District Court of Maryland. The company will shut down its debt management operations, transfer all current clients' accounts to a third party and will not participate in any aspect of credit counseling in the future. The action arose from charges that the firm deceived consumers into paying $170 Million in hidden fees, had misrepresented its nonprofit status and would teach consumers how to manage their finaces for no upfront fee.

The order further requires the company to file a plan of liquidation, and contains a judgement of $170 million. The arrangement is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Updates on the case are available through the FTC consumer hotline at 877 862 0886. The suit had named Ameridebt, Andris Pukke, Pamela Pukke and Debt Works as defendants with Ameridebt. The case against the other defendants is continuing.

Illinois State Action - February 2003 On February 5, 2003 the Illinois Attorney General filed suit alleging that the company is not licensed to do business in Illinois and must cease doing business in that state until in full compliance with that state's law. The suit seeks repayment to Illinois residents for monies paid to Ameridebt and up to a $50,000 penalty for each violation of the state's Consumer Fraud Act. The company disputes the suit's allegations.

Missouri Action - September 2003 The Missouri State Attorney General filed a petition for revocation of authority to conduct business in Missouri against Ameridebt and other associated companies on September 11, 2003. The suit seeks restitution, civil penalties, and costs from the firm for alleged violations of Missouri's Merchandising Practices Act. The company disputes the suit's allegations.

In November, 2003 the FTC had announced a settlement with Ballenger Group, LLC, which has acted as the servicer of Ameridebt's DMP's (Debt Management Plans) since the beginning of 2003. The settlement enjoins Ballenger from misrepresenting that there are no fees, that no profits are being made from the goods or services provided, and that the money paid by a consumer on a DMP will be disbursed to creditors. The settlement further orders the defendants to pay $750,000 in consumer redress. The final order for Ballenger Group is for settlement purposes only and does not constitute an admission of a law violation.

Texas Action - November, 19, 2003 The Texas State Attorney General filed suit against Ameridebt, Debtworks, Infinity Resources, and Andris Pukke for violations of the Texas Deceptive Trade Practices-Consumer Protection Act. The suit alleges misrepresentation of services, fees, and non-profit status and seeks civil penalties up to $20,000 for each violation, interest on all awards of restitution, damages or civil penalties, and all costs of investigation. The company disputes the suit's allegations.

The BBB has no information regarding Ad Reviews at this time.

Ameridebt has ceased operations. Former clients seeking adjustments should call the Federal Trade Commission's hot line number of 877 862 0886. The FTC will notify former clients if assets collected from the company in settlement of litigation in January, 2006, remains and can be distributed.

On June 5, 2004 the company had filed for reorganization under Chapter 11 of the federal Bankruptcy Act, case #04-23649. This permitted the company to continue to operate with court supervision while developing a plan of reorganization. The final date to submit claims has passed. A bankruptcy liquidation plan has been approved by the Court whereby the 60,000 accounts from the firm will be sold to Money Management International in Houston, TX. Interested parties can check with the US Bankruptcy Court in Greenbelt. MD at 800 829 0145 for information.

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ID: 2404
Report as of: 2/9/2010 8:49 PM

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