Contact: Eric Friedman, 240-777-3719
For Immediate Release: October 23, 2001

County Investigates
Credit Counseling Firm

The Montgomery County Department of Housing and Community Affairs announced today that its Division of Consumer Affairs (DCA) is currently investigating a debt reduction firm operating in Wheaton. The firm claims to help Spanish speaking consumers pay off their debts faster by negotiating with creditors to get lower interest rates and lower payments.

Subpoenas have been issued by DCA for business and bank account records for an operation owned by Alex Treschzanski, which operates under the name "Financial Freedom of Washington." Consumer Affairs has been in contact with more than a dozen consumers who claim they paid between $295 and $495, purportedly to receive help regarding their debt problems but, instead, received only a referral to another organization located in Evanston, Wyoming. Alex Treschzanski is a licensee of a national operation called "Financial Freedom International, Inc." According to the franchisor, Alex Treschzanski's operation should have been giving educational books, tapes, and videos to consumers to help them with their financial trouble.

A similar firm operated in New York City by Alex Treschzanski was recently found to be a bogus debt reduction service and was shut down by the New York Attorney General's Office.

DHCA staff say that this investigation is indicative of a problem nationwide within the debt consolidation, debt reduction and debt adjusting industry. In Maryland, it is illegal to pay another to adjust a debt unless the "debt adjuster" is an attorney, a bank, a judicial officer, or a certified public accountant. A nonprofit, religious, fraternal or cooperative organization may engage in debt adjusting provided that no charge is made nor fee imposed.

"Our residents have come to expect the Division of Consumer Affairs to take the lead on issues that affect consumers in Montgomery County and that have national impact as well," said County Executive Douglas M. Duncan. "We will investigate and work cooperatively with other regulatory agencies at the state and federal level to address these issues."

Consumer Affairs has been in contact with the Federal Trade Commission and other state consumer protection agencies regarding this investigation. The work of the County’s DCA is featured in the current issue of Business Week Magazine in an in-depth article focusing on problems in the debt adjusting industry.

Consumers in Montgomery County who have experienced problems with any debt adjusting firm are encouraged to contact the Division of Consumer Affairs at 240-777-3636.