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Federal Class Action Takes Aim|At ‘Credit Counseling’ Industry

LOS ANGELES (CN) - The nation's leading creditors, including Chase Manhattan Bank and Money Management International, created the "credit counseling" industry "to use third-party, ostensibly nonprofit organizations to facilitate their collections while concurrently attempting to shield the creditors from any direct liability for wrongs committed against consumers," a class-action complaint claims in Federal Court. See the 190-page complaint.

Plaintiffs demand damages for money lost to defendants' "credit repair" and "debt management" services. See the 190-page complaint.

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