Colorado attorney general settles with debt-management firm
Colorado Attorney General John Suthers
- Heather Draper[1]
- Reporter- Denver Business Journal
- This email address is being protected from spambots. You need JavaScript enabled to view it.[2] | Facebook[3] | Twitter[4] | Finance Etc. blog[5]
Colorado Attorney General John Suthers[6]’ office on Monday said it had entered a settlement agreement with Westminster debt-settlement company Prestige Financial Solutions Inc. and its owner, Amy Thompson[7], over allegations that Prestige didn’t meet state consumer protection regulatory requirements.
In January 2012, Suthers’ staff accused Prestige of providing debt-management services to Colorado consumers without meeting those regulatory requirements.
From September 2008 through July 2012, Prestige was a Colorado registered debt management services provider. Its business practices violated various provisions of the Colorado Uniform Debt-Management Services Act (DMSA) by failing to provide required consumer disclosures, cancellation notices and website information, in addition to other violations, according to the AG’s office.
Suthers alleges that Prestige “may have entered into contracts with at least 720 Colorado consumers.”
Under the final agency order, Colorado clients may choose to continue to receive Prestige’s services free of charge or terminate Prestige’s services for a full refund of their trust account balances.
Prestige and Thompson also agreed to be permanently banned from providing debt-management services for a fee to Colorado residents. In addition, Prestige and Thompson were ordered to pay the amount of $165,000 for consumer restitution, reimbursement of costs and attorneys’ fees, and educational purposes.
If they default in making payments under the consent decree, they must pay an additional $2 million, Suthers’ office said.
Heather Draper covers banking, finance, law and the economy for the Denver Business Journal and writes for the "Finance Etc." blog. Phone: 303-803-9230.
References
- ^ Heather Draper (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Facebook (www.facebook.com)
- ^ Twitter (twitter.com)
- ^ Finance Etc. blog (www.bizjournals.com)
- ^ John Suthers (feeds.bizjournals.com)
- ^ Amy Thompson (feeds.bizjournals.com)