Large banks and debt collectors might have conspired to present these for-profit, bank-controlled debt collectors as "not for profit credit counselors" whose mission was to aid the consumer.

This is a broad investigation and pending class action lawsuit against JP Morgan Chase & Co., Chase Manhattan Bank USA, Money Management International (MMI), also known as Consumer Credit Counseling Service (CCCS), and Money Management By Mail Inc.

Consumers report allegations of fraudulent "debt counseling" and debt collections in the subprime credit industry. The suit and investigation arise out of the relatively new sub-prime credit counseling industry. The industry was created by the nation's leading creditors (including leading credit card companies) to use third party, allegedly non-profit "credit counseling" organizations, to secretly facilitate their collections from unsuspecting customers who were in financial distress and had turned to what they thought were non-profits for financial help.

The complaint alleges that Management International Inc. (MMI) and others advertised and promoted themselves as non-profit credit counseling organizations whose main purpose was to act on behalf of the consumer. These companies were in fact operating as agents of the consumers' creditors, including Chase, according to the complaint. These agencies claimed in their advertisements that they would "negotiate" on behalf of consumers with Chase and other credit card companies to whom consumers owed money. However, as alleged in the Complaint, there was no real "negotiation" Instead there were back room deals between the creditors and the "counseling" agencies designed to collect as much money as possible from unsuspecting consumers.

The complaint alleges: MMI and others were nothing more than debt collectors that, even according to Chase's own documents, "partnered" with Chase to collect its accounts under the guise of "rescuing" consumers drowning in debt; The agencies, in reality, operated as for-profit organizations, distributing monthly payments they collected from consumers to Chase, while keeping a share for themselves, effectively a payment by Chase that was kept hidden from the consumers; and The agencies also failed to provide comprehensive financial counseling that communicated all options open to indebted consumers. For example, the agencies as a matter of practice failed to discuss bankruptcy as an option since that would cut off the flow of money to the creditors.

The lawsuit seeks to recover monies wrongfully obtained from consumers (including Chase credit card holders) who were indebted to Chase and/or who contracted for credit repair and debt management plan services from MMI or credit counseling agencies that MMI has taken over.