Delaware: Credit services agency to pay $115,000 for allegedly duping consumers

By Mark Iandolo | Apr 9, 2018

DOVER, Del. (Legal Newsline) — Delaware Attorney General Matt Denn announced March 28 that Cornerstone Credit Services, a Wisconsin company, will pay a total $115,000 in restitution to 35 Delawareans victimized by its allegedly unlawful debt management services.

Under Delaware state law, providers of debt management services must register with the state attorney general and obtain a license. According to allegations, Cornerstone tried to hire a law firm to help it shirk those responsibilities.

In 2015, the Cross & Simon law firm filed an action alleging Cornerstone was a sham business and did not help Delaware consumers lower their debts. In December 2017, Coss & Simon and the Consumer Protection Unit (CPU) of the Department of Justice's Fraud and Consumer Protection Division reached a settlement with Cornerstone.

“This is another example of how our CPU protects Delaware consumers,” Denn said in a statement. “I want to thank Rick Cross and Cross & Simon, and deputy attorney general Michael Clarke and chief special Investigator Alan Rachko and their team, for their diligence in pursuing this case for the benefit of the Delaware customers, some of whom were facing significant financial difficulties.”


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