Debt Company To Pay $14M In Fines, Restitution To Colorado Clients
DENVER (AP) - A Dallas debt-resolution company and its president have been told to pay nearly $14 million in penalties and restitution to Colorado and former clients for violating state laws, Attorney General John Suthers said Wednesday.
Credit Solutions of America and Doug Van Arsdale each face $5 million in civil penalties and a total of $3.8 million in restitution to nearly 2,700 consumers, Suthers said.
Van Arsdale and the company can appeal the fines and restitution, said Fred Yarger, Suthers' spokesman.
Yarger said the settlement was approved by the administrator for the Uniform Consumer Credit Code, an independent agency within Suthers' office.
Yarger said state officials have not been in contact with Van Arsdale or the company. No current phone listings could be found for either.
Credit Solutions of America failed to renew its registration to operate in Colorado after 2009, Yarger said.
The company also was accused of violating provisions of the Colorado Debt Management Services Act, including providing required information and disclosing period accounting reports and other information, Yarger said.
Consumers who will get restitution had contracted with Credit Solutions of America to negotiate with their creditors about the consumers' debts.
Yarger said the settlement involves only Colorado and no other states.
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