Illinois Attorney General Sues Debt Settlement Company

land-of-lincoln Illinois Attorney General Lisa Madigan has filed a law suit against Dallas Based “Credit Solutions of America”. Madigan is attempting to stop them from doing business in Illinois and wants the company to pay restitution to its Illinois customer, pay a $50,000 fine for violating the state’s Consumer Fraud Act and pay additional fines of $50,000 for each instance of fraud.

In the lawsuit, Credit Solutions of America accepted money from Illinois customers but failed to negotiate a lower payment on their debt with the bank. While Credit Solutions claimed to be successful in reducing customers debt by 50% it actually left them deeper in debt according to the law suit.

Lisa Madigan and the Illinois Attorney Generals office has filed similar lawsuits against SDS West Corporation and Debt Relief USA.

Her office seeks to ban all Debt Settlement Companies from operating in Illinois, unless they meet the following requirements:

  • Provide individual credit counseling:
  • Become licensed and Bonded in Illinois:
  • Disclose risks to customers about entering into a debt settlement contract;
  • Provide a written contract with a right to cancel clause.

Over the past year the Attorney Generals office received over 12,000 complaints regarding debt an credit issues.

Leave a Reply

Call Me Today

Copyright © 2008 IL Real Estate Specialists     Log in     Design by Real Estate Tomato     Powered by Tomato Blogs
nu frontiers Admin Login