Ga. AG, financial company reach agreement
ATLANTA (Legal Newsline) - Georgia Attorney General Sam Olens announced on Thursday that a financial company will pay $448,000 for allegedly violating the state's Fair Business Practices Act and the state's Debt Adjustment Act.
The California-based EnDebt LLC, doing business as DebtOne Financial Solutions LLC, and Eric Delariva, its owner, allegedly charged excessive fees in for debt services.
Under state law, there is a limit to the fees that debt adjusters can charge, with the number capped at 7.5 percent of the amount distributed to creditors on behalf of the debtor. The company allegedly charged more than allowed.
Delariva and the company received a copy of the state's complaint on Oct. 28, but failed to answer any questions or respond to pleadings about the case.
Under terms of the judgment, ordered by Fulton County Superior Court Judge Christopher Brasher, EnDebt and Delariva are required to pay a $2,000 fine for each of the 115 different violations of the Debt Adjustment Act.
The two parties are also responsible for providing restitution to the 115 Georgia consumers affected by the alleged violations, which amounts to $168,193.82.
The defendants are also required to pay a $50,000 penalty for their failure to provide the Office of Consumer Affairs with the annual audits and proof of insurance coverage that was requested.