DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced a lawsuit on Wednesday against an Orlando, Fla.-based company that allegedly engaged in unregistered debt management services.
Consumer and Business Debt Counseling Services allegedly provided back end debt management services for the Johnson Law Group, another Orlando, Fla.-based company. Suthers filed a consumer protection lawsuit against Johnson Law Group in April.
Consumer and Business Debt Counseling Services allegedly failed to register with the state as required by the Colorado Debt-Management Services Act while it allegedly enrolled Colorado consumers inits program between January 1, 2008, and August 12, 2009. The company also allegedly failed to comply with state law after Suthers' office notified it of its misconduct in March.
Suthers' office secured a $594,000 judgment against a similar Florida-based company this month. That company, Enhanced Servicing Solutions, also allegedly provided back end debt management services for the Johnson Law Group.
According to Suthers' April lawsuit against Johnson Law Group, the company allegedly contracted with 665 Coloradans for debt management services between January 2008 and November 2009 when it was not licensed with the state. The firm agreed to cease its debt management practices after receiving a cease and desist notice on July 29, 2009. Suthers alleges that the company continued illegally assisting consumers in settling their debts despite the cease and desist notice.