DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced a $225,000 settlement Thursday with a Texas-based debt settlement company that allegedly operated illegally in Colorado.
The now defunct CreditAnswers and William Loughborough, the company's CEO, entered a stipulation and final agency order that will pay the state $225,000 for consumer restitution, educational purposes, reimbursement of costs and attorneys' fees. CreditAnswers allegedly violated multiple provisions of the Colorado Uniform Debt-Management Services Act by failing to provide required cancellation notices and consumer disclosures, in addition to other violations.
"When the legislature decided to regulate the debt-settlement industry beginning in 2008, it was trying to address some of the worst abuses in the industry, including lack of clear disclosures and exorbitant fees," Suthers said. "This settlement with CreditAnswers continues our efforts to hold accountable violators of that law."
Between April 2009 and July 2011, CreditAnswers was a registered debt settlement services provider in the state of Colorado. In February 2012, Suthers' office alleged CreditAnswers provided debt management services without complying with Colorado consumer protection and debt settlement laws. Under the terms of the agreement, CreditAnswers and Loughborough agreed to be permanently enjoined from providing Colorado residents with debt management services.
Suthers' office registers and regulates debt management companies, including debt settlement and credit counseling companies.