Contact: Elliot Burg, Assistant Attorney General, (802) 828-2153
Debt Settlement America, Inc., a debt settlement company based in Dallas, Texas, has entered into a settlement with the Vermont Attorney General’s Office that will result in refunds and payments to the State totaling over $120,000. The Attorney General claims that the company violated state law by engaging in the business of debt adjustment without a license, and by failing to comply with the Vermont Consumer Fraud Act. This is the ninth settlement between the Attorney General’s Office and a debt settlement firm in the past year.
According to Attorney General William Sorrell, Debt Settlement America violated the Consumer Fraud Act by not following the State’s three-day right to cancel requirements and by failing to have prior proof to support online claims about the results it could achieve for consumers. Debt Settlement America’s website stated that the company could reduce consumers’ debts to “less than 50 cents on the dollar.”
Debt Settlement America entered into contracts with 25 Vermont consumers and charged 10 to 15 percent of the dollar amount of the debt placed with the company. Those consumers paid the company a total of over $69,000 in fees.
Under the settlement, Debt Settlement America must pay full refunds to all of its Vermont customers and $50,000 in civil penalties and costs to the State. In addition, the company will pay
$2,000 to any Vermonter who was sued by a creditor after signing up with the firm, and will offer to complete, without charge, negotiations with the creditors of its Vermont customers.
For more information on the settlement, consumers can call the Attorney General’s Office at (802) 828-5507.
Last modified: April 17, 2018