The Colorado attorney general has sued Real Talk Network, a producer of infomercials on radio stations in that state and California, alleging the contents of their shows misled consumers and their seminars broke consumer credit laws.
The company's two corporate officers, Dave Burke and Erik Sale, are named in the lawsuit. Burke was the company's president, while Sale directed the majority of the company's sales.
According to the complaint, the infomercials advertise a 100% success rate in getting consumers out of debt, paying off mortgages in ten years and "exploding" their credit score -- all achieved by attending a free three-hour seminar.
The AG's office says consumers were told they would receive one-on-one coaching from a financial adviser and get access to low-interest loans through Real Talk Network's relationships with banks. Following the seminar, Real Talk representatives pressured consumers into spending $1,497 to $3,497 on its services, the state says. But consumers who paid up received little to no coaching and found there were no special relationships with banks, according to the lawsuit.
When some consumers left the program, their accounts were sent to a collection agency.
"Although we and our partners warn that Colorado consumers should always beware deals that sound too good to be true, companies should not prey on consumers' desperation or fears after going into debt or falling behind on their bills," Colorado AG John Suthers said in a public statement. "This case underlines my office's commitment to ensuring that businesses operate on a level playing field and do not victimize consumers."
The company's website is "temporarily offline" and attempts to reach the Real Talk Network found all numbers associated with the company to be out of service.
Real Talk Network's debt-relief seminars duped consumers, Colo. AG says