Editorial: Lubbock Should Look Closely at Debt Relief

A federal court order against a debt relief operation offers a lesson for Lubbock households facing bills they cannot manage.

The court entered a $106.8 million default judgment against corporate defendants in an operation accused of impersonating banks, credit card companies and government agencies. The order banned the defendants from debt relief work and telemarketing.

The complaint alleged that operators promised to reduce debts by as much as 75% or more and collected illegal advance fees. Seniors and veterans were among the people targeted.

For local residents, the practical issue is what happens before any debt is settled. Consumer guidance warns against businesses demanding advance payment for promises to erase debt or guarantee fast forgiveness.

Legitimate counseling organizations should explain their services and fees before someone commits. A sales pitch using a government name is not proof of government backing.

The action does not establish how many Lubbock residents were affected.

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