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AmeriDebt Founder Settles FTC Charges

Consumers will receive just under $20 million in settlement

September 12, 2008

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The Federal Trade Commission has returned approximately $12.7 million to consumers from a settlement with Andris Pukke and his companies, AmeriDebt, Inc. and DebtWorks, Inc. The action resolves the largest credit counseling/debt management deception case brought by the FTC.

In addition, more than $7 million will be returned to consumers as a result of class-action settlements with the defendants and related credit counseling agencies.

Using the defendants' records, about 287,000 AmeriDebt consumers have been mailed redress checks. The FTC and individual consumers charged that AmeriDebt, DebtWorks, and related credit counseling agencies engaged in deceptive practices in promoting and offering credit counseling and debt management plans (DMPs).

Consumers who qualified for redress, a total of about 460,000 consumers, obtained a DMP from one of 11 credit counseling agencies serviced by DebtWorks between January 31, 1998 and October 7, 2004.

The agencies were AmeriDebt, Inc., Debticated Consumer Counseling, Inc., A Better Way Credit Counseling, Inc., Credicure, Inc., Mason Credit Counseling, Inc., Nexum Credit Counseling, Inc., Neway, Inc., The Credit Network, Inc., Visual Credit Counseling, Inc., Preactive, Inc., and Debtscape, Inc.

Since May 2006, a court-appointed receiver has been working to identify all possible assets that can be liquidated for consumers' benefit. The receiver obtained a contempt order against Pukke in March 2007 on the grounds that he had been hiding assets from the receiver. A wide range of complex assets, including overseas property and property held by family and friends of Pukke, has been located and liquidated.

AmeriDebt consumers with questions should call the redress administrator at 888-309-3816. Consumers who obtained a DMP from another agency should call 888-305-3082.

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