National Consumer Council Files $20 Million Lawsuit Against the Better Business Bureau

Source:  Business Wire / Find Articles.com
Date:  Oct. 3, 2003

IRVINE, Calif.–(BUSINESS WIRE)–Oct. 3, 2003

The National Consumer Council announced that it has filed a suit against William G. Mitchell and the Better Business Bureau of the Southland seeking damages in excess of $20 million. The suit alleges that Mitchell, the President of the Southland BBBS, which is a private, nonprofit, non-governmental, self-regulatory organization, has demonstrated unfair practices by using personal conflict of interest to fuel the company’s “reliability reports.”

In a civil complaint filed Monday, the NCC alleges that Mitchell and the BBBS have attacked the NCC in an improper and unlawful effort to halt the NCC’s success in championing the cause of consumers in the consumer debt industry.

The complaint explains that Mitchell’s attacks are part of a larger, wholesale plan to destroy organizations that promote debt negotiation as a viable option for eliminating consumer debt. Mitchell is accused of failing to disclose the extraordinarily close relationship between the BBBS and Springboard, a consumer credit counseling service organization (CCCS) that apparently is hostile to the NCC, and of which Mitchell is a board member.

The complaint explains that the NCC made extraordinary efforts to satisfy Mitchell and the BBBS, including engaging in extensive communications and meetings with Mitchell and the BBBS, as well as providing volumes of documentary evidence directly to Mitchell. The complaint notes that this evidence demonstrates that the Reliability Report published by the BBBS about the NCC was erroneous, because it failed to consider the fact that the NCC delivers a surfeit of free services to the public.

NCC spokespersons say they were compelled to file suit “because Mitchell and the BBBS are more concerned with protecting the CCCS industry and Mitchell’s self-interest” than the consuming public, and “because Mitchell insists on defaming the NCC so that he may advance his own interests.” The report concludes that “Mitchell and the BBBS are not who they purport to be,” explaining that Mitchell has failed to disclose to the public significant conflicts of interest, especially his intimate relationship with Springboard.

About the NCC

The NCC provides counseling and advice to consumers regarding the hazards of excessive consumer debt and the means of eliminating or minimizing the negative impact of such debt. It provides and manages educational programs with the cooperation of local and national educational institutions and governmental agencies. The NCC conducts a broad national media program to increase awareness, enlightenment and an understanding of solutions regarding consumer debt issues. The NCC supports a fully staffed telephone center of trained, certified consultants, whose sole purpose is to aid consumers who are working to emerge from debt.