Texas company ordered to pay $10M, restitution in Colorado
DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced a final agency order for civil penalties on Wednesday against a Dallas-based company for alleged unregistered and unlawful debt management practices in the state.
Credit Solutions of America LLC and company president Doug Van Arsdale, under the final order, are each liable for more than $5 million in civil penalties.
The final agency order, in addition to assessing more than $10 million in civil penalties, also requires Van Arsdale and Credit Solutions to pay $3,830,149 in restitution to 2,683 Colorado consumers who contracted with the company for debt management services.
Credit Solutions registered in Colorado in 2008 as a debt settlement services company but did not renew its registration in 2009, Suthers said. The company, however, continued to operate in Colorado in violation of various provisions of the Colorado Debt Management Services Act, Suthers said.
Under Colorado law, debt management companies are required to register with the state.