Contact: Sue Tucker, 240-777-6530 or
Eric Friedman, 240-777-3719

For Immediate Release: February 4, 2002

DUNCAN SEEKS REFUNDS FOR HISPANIC
FRAUD VICTIMS; ALLEGES CREDIT COUNSELING FIRM
ENGAGED IN DECEPTIVE PRACTICES

Montgomery County Executive Douglas M. Duncan announced today that the County is seeking refunds for dozens of Hispanic residents from a Wheaton credit counseling firm charged with deceptive financial practices. Duncan also noted that legal action was being pursued to keep the company from continuing its shady dealings in Montgomery County.

"This company is targeting Latinos in our community and ripping them off," said Duncan. "And we're going to do everything we can to put a stop to this and return the money owed these victims of financial fraud."

Financial Freedom advertised that it can help Spanish-speaking consumers pay off their debts faster by negotiating with creditors to get lower interest rates and lower payments. However, the firm solicited fees of $195 to $595 in violation of state law, and was not registered as a Maryland corporation. Montgomery County's Division of Consumer Affairs has obtained evidence that the firm also misrepresented its services. In most cases, the merchant did nothing more than refer consumers to another organization in Wyoming.

The action taken by the County follows a six-month investigation that coincides with recent news reports regarding a nationwide problem within the debt consolidation / credit counseling industry. The Office of the Montgomery County Attorney has issued a demand letter to the Wheaton firm and to two related organizations - Financial Freedom International, Inc. of Orem, Utah and Family Financial Education Foundation of Evanston, Wyoming. The County has notified these firms that it intends to pursue enforcement action unless the merchants stop their illegal and deceptive business practices, provide refunds to consumers, and provide meaningful disclosure to future consumers.

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

"We continue to see more and more scams which offer a glimmer of hope to people who are mired in seemingly endless debt," said Attorney General J. Joseph Curran, Jr. "Consumers who wish to negotiate lower interest rates or lower payments can do so themselves for free or can contact a legitimate non-profit credit counseling service for assistance."

Consumers in Montgomery County who have experienced problems with any credit counseling or debt adjusting firm are encouraged to contact the Division of Consumer Affairs at 240-777-3636. Spanish-speaking staff members are available to assist consumers with questions.