Washington (Sept. 21, 2004) -- In its aggressive crackdown on credit counseling abuse, the Internal Revenue Service filed a $15 million suit against Germantown, Md.-based AmeriDebt Inc. in anticipation that the company's tax-exempt status would be overturned.
The IRS is currently auditing roughly 50 credit counseling companies. The counseling concerns negotiate with credit card companies to lower their customers' interest rates and monthly payments. Recently, however, many of them have come under scrutiny by regulators for allegedly taking advantage of people in debt and channeling the processing fees to for-profit affiliates.
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