US to return more funds in AmeriDebt credit counseling scam

WASHINGTON, Sept 17 (Reuters) – The US Federal Trade
Commission said on Wednesday it will send more than $1.79
million in refunds to consumers allegedly defrauded in a credit
counseling/debt management scam.

The defendant, Andris Pukke, and his companies, AmeriDebt
and DebtWorks, allegedly deceived consumers about their fees,
misrepresented that AmeriDebt was a non-profit organization, and
falsely promised to teach consumers how to handle their credit
and finances, the FTC said.

Consumers affected by Wednesdays announcement will receive
checks of up to $725.10. The agency has already returned about
$15 million to other AmeriDebt consumers.

(Reporting by Ros Krasny; Editing by Susan Heavey)