Unlicensed Florida Debt Management Firm Sued by Colorado Attorney General
The Colorado Attorney General announced a lawsuit last week against a Florida debt relief company for allegedly offering debt management services without a license.
Attorney General John Suthers sued Orlando-based Consumer and Business Debt Counseling Services for providing debt management services in Colorado without registering with the state as required by the Colorado Debt-Management Services Act. The company allegedly enrolled Coloradans in its debt help program between Jan. 1, 2008 and Aug. 12, 2009. The lawsuit also alleges that Consumer and Business Debt Counseling Services failed to comply with state law after Suthersâ€™ office notified the company of its misconduct in March.
Consumer and Business Debt Counseling Services allegedly provided back end debt management services for Johnson Law Group, also based in Orlando. The Johnson Law Group is also the subject of a lawsuit by Sutherâ€™s office filed in April. A second company that also allegedly provided back end debt management services for Johnson Law Group, Florida-based Enhanced Servicing Solutions, agreed to pay a $594,000 judgment reached in a settlement agreement with Sutherâ€™s office in August (â€śFla. Company Sued Over Debt Management Services,â€ť Legal Newsline, Aug. 31, 2011).
According to Sutherâ€™s April lawsuit against Johnson Law Group, the company allegedly contracted with 665 Colradans for debt management services between Jan. 2008 and Nov. 2009. During those months, the company was not licensed with the state. The company agreed to halt its business operations in Colorado after receiving a cease and desist order from Sutherâ€™s office on July 29, 2009. However, the lawsuit alleges that Johnson Law Group continued to illegally enroll consumers in its debt settlement program despite the order.
â€śAttorney General Announces Lawsuit Against Florida Company Engaged in Unregistered Debt Management Services,â€ť Office of the Attorney General of Colorado press release, Aug. 31, 2011.
Complaint: State of Colorado v. Consumer and Business Debt Counseling Services, Inc. Filed August 17, 2011.
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