DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced a stipulation and final agency order Monday against a Westminster-based debt settlement company and its owner to resolve allegations that the company failed to meet regulatory requirements.
Under the terms of the settlement, Prestige Financial Solutions Inc. and Amy Thompson, the company's owner, are permanently enjoined from providing debt management services in Colorado, must pay $165,000 for consumer restitution, educational purposes, attorney fees and reimbursement of costs. If the defendants default in making payments, they will be required to pay an added $2,016,113.78.
Between September 2008 and July 2012, Prestige was a Colorado-registered debt management services provider. Suthers' office alleged that the company's business practices violated multiple provisions of the Colorado Uniform Debt-Management Services Act by failing to provide required cancellation notices, consumer disclosures and website information, among other violations.
Prestige may have entered into contracts with at least 720 consumers in Colorado. Under the terms of the final agency order, current clients in Colorado may decide to continue to receive the company's services free of charge or terminate the services for a full refund of their trust account balances.