DENVER (Legal Newsline) – Cynthia H. Coffman, attorney general for Colorado, has announced more than 5,700 Colorado consumers will receive funds totaling $2.2 million from lending abuse settlements.
Most of the settlements resolved issues with companies that allegedly violated the Uniform Debt Management Services Act with their debt settlement services.
“The harm to these consumers is especially egregious because the victims were desperately seeking debt management services and already in extremely vulnerable positions,” said Coffman.
The largest of the settlements came from Freedom Debt Relief, a California-based debt settlement provider. Other companies include Century Negotiations Inc., Orion Financial Group and Prestige Financial Solutions Inc.
The refunds to be disbursed include money going back to the approximately 2,700 consumers that borrowed from Allied Cash Advance Colorado. Allied offered consumers loans that allegedly violating the Uniform Consumer Credit Code.
“Colorado consumers must be aware of the terms of the loans and their rights under the law,” Coffman said. “Many online lenders are unlicensed, which often leads to the loan being much more costly as maximum allowable rates are exceeded and additional fees are not disclosed.”