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Thirteen states settle lending dispute affecting Mass. soldiers

Predatory lending companies often prioritize profits over helping people solve debt problems. In Massachusetts, if someone is struggling with debt and involved with a predatory lender, he or she can seek financial help that can stop harassment by creditors. Often, a company will resort to calling people at home and work in as harassing a manner as possible. Financial reorganization of assets can put a stop to creditor harassment and their often-predatory ways of doing business.

A settlement last week by 13 states, including Massachusetts, will grant soldiers $92 million in debt relief causing by a predatory lending scheme. The settlement involves military consumer lender Rome Finance, which consists of Culver Capital LLC and Colfax Capital Corp. Ninety Massachusetts service members who were lured in by deceptive contracts will receive about $650,000 in relief payments. Allegedly, the company offered credit to members without providing accurate descriptions of payments, all the while hiding important information about the high interest rates attached to the credit.

Bankruptcy can be an option for those struggling with high levels of debt and those who have not been able to get any other form relief. Chapter 13 bankruptcy is one of the many options available in Massachusetts. This process involves a reorganization of an individual's finances in order to put a dent into the amount of debt owed. There are a series of steps that must be completed prior to bankruptcy, but the final outcome can result in a significant burden being lifted from a debtor.

Deceptive lenders do not intend to help individuals. These lenders are out to make money and should be held accountable for their unscrupulous actions. If someone is in severe need of assistance while holding a large amount of consumer debt, he or she may wish to consider bankruptcy as an option. Bankruptcy proceedings can allow relief from medical debt and credit card bills if someone or a family has a diminished income and is unable to repay those debts in full and in a timely manner.

Source: Providence Business News, "Mass., 12 other states settle lending claims," Aug. 11, 2014

Source: Providence Business News, "Mass., 12 other states settle lending claims," Aug. 11, 2014

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