DEBT CONSOLIDATION

Narrated Package Plus

Additional B-Roll and SOTS

The following footage is provided free of charge by the American Bar Association for use in news broadcasts at your editorial discretion.

SUGGESTED ANCHOR LEAD:

For many of us, ringing in the new year means resolving to deal with the debt we rang up over the holidays. Last year, 9 million people turned to credit counseling services for help-but many of them fell prey to debt consolidators who promised to manage their money-but instead mangled their credit. Now the FTC, the IRS and state agencies are investigating these credit crooks. Lee Miller reports.

TITLES IN ORDER:

COUNTDOWN:

Ch. 1 - Narrator

Ch. 2 - BG & SOTS

Pkg. Runs 1:58

Plus Additional B-Roll and SOTS

TRT 6:05

NARRATOR: Not long after Pam and Allen Angell got married, they felt as if they had a monopoly on money troubles-their combined debt from family medical problems and an earlier divorce totaled $65,000.

The stress was intense for the whole family.

But rather than filing for bankruptcy, the Angells, like millions of others, turned to a debt consolidation company to help pay off their creditors and start over.

TTITLE: Pam Angell, Fraud Victim

SOT P. ANGELL: We wanted to get it all under control and just have the peace of mind that we weren't responsible for making those payments every single month.

Pam & Allen with paperwork

NARRATOR: The Angells made monthly payments to a seemingly trustworthy company that promised to notify their creditors, negotiate lower rates and disperse payments for them.

A few months into the program they started receiving harassing calls from creditors and noticed problems on their statements.

TTITLE: Allen Angell, Fraud Victim

SOT A. ANGELL: We started getting calls constantly from the creditors wondering why they weren't getting paid or why they weren't getting paid enough.

Pam & Allen making a budget

NARRATOR: After repeated calls to the debt consolidation service, the Angells discovered the company had gone bankrupt and disappeared with their money. They were left with more debt, skyrocketing interest rates, and negative information on their credit report.

Kid doing homework

NARRATOR: With personal debt at record levels, the lesson for consumers-Do your homework.

TITLE: Dennis W. Archer

President, American Bar Association

Family taking a walk

NARRATOR: For now, the Angells have taken their financial matters into their own hands, while they try to get their money back.

A. Angell on Camera

SOT A. ANGELL: I look back on it, and think yeah, it sounded too good to be true, it turns out, it was.

Family taking a walk

NARRATOR: This is Lee Miller reporting.

SUGGESTED ANCHOR TAG:

For more information on debt consolidation visit ABALawInfo.org. Click on "your finances"

ADDITIONAL SOT:

Allen Angell

Fraud Victim

SOT A. ANGELL: The idea of having one place where we could just send a check every month and they would take care of it for us, to me was worth the fee that they charged actually. Seemed like the right thing.

SOT A. ANGELL:These people were supposed to help, and instead in fact they caused significant damage to our credit to our life style.

ADDITIONAL SOT:

Pam Angell

Fraud Victim

SOT P. ANGEL: I would contact them probably at least once a week to find out why so and so hadn't been paid or why they hadn't been paid enough, and pretty much just got, we'll get back to you, or I really don't know the answer to that question because another department makes out the checks.

SOT P. ANGELL:Creditors were not being paid at all, it wasn't just late, it wasn't just the wrong amount, it was not at all.

ADDITIONAL SOT:TITLE:

Dennis W. Archer

President, American Bar Association

For more information contact:

Julie Brown

American Bar Association

312/988-6133

brownjd@staff.abanet.org