Ill. AG sues debt settlement company
Lisa Madigan (D)
SPRINGFIELD, Ill. (Legal Newsline)-The Illinois attorney general has sued a Texas-based debt settlement company, accusing the firm of failing to provide services it agreed to provide consumers.
Attorney General Lisa Madigan, in her lawsuit filed Thursday, is seeking to bar Credit Solutions of America from doing business in the state.
She also wants the company to pay restitution to its customers, pay a $50,000 fine for violating the state's Consumer Fraud Act and pay additional fines of $50,000 for each fraud violation, a statement said.
Madigan, a Democrat, said the Dallas, Texas-based firm told consumers that it could reduce consumers' debt by as much as 50 percent but instead left people in ever more debt.
The lawsuit contends that Credit Solutions told consumers not to pay their debtors but instead pay them in order to settle debts. But all the while, penalties and interest accrued because of the debt settlement company's inaction.
Madigan filed two similar lawsuits against debt settlement firms Ameridebt and Cambridge Credit earlier this year.