Texas Attorney General Accuses Debt Settlement Firm Of Fraud
March 30, 2009
A Richardson-based debt settlement company faces a lawsuit, filed last week by Texas Attorney General Greg Abbott, which alleges that it defrauded Texas consumers by failing to negotiate settlements with the customers’ creditors as promised.
A story in the Dallas Morning News says that Abbott’s office received 140 complaints against Credit Solutions of America in the past two years. The Better Business Bureau, which gave the company an “F” says that they have received more than 1,600 complaints against the firm in the last three years.
The lawsuit seeks an injunction against Credit Solutions to prevent them from “continuing to unlawfully promise services which it does not deliver.”
A spokesperson for Credit Solutions told Pamela Yip of the Dallas Morning News that the company “works diligently to resolve all complaints with the Better Business Bureau, and to our knowledge any BBB complaints referred to by the attorney general of Texas have been appropriately addressed.”
The company’s mouthpiece also said that they looked forward to working out an “acceptable resolution” with the Abbott and his team.
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