Credit Solutions of America, a Dallas-based debt resolution company, and owner Doug Van Arsdale must pay nearly $14 million in penalties and restitution to the state of Colorado and former clients for violating state laws, according to Attorney General John Suthers' office.
The company was accused of violating provisions of the Colorado Debt Management Services Act, including providing required information and disclosing period accounting reports and other information, according to the attorney general's office. The company had failed to renew its registration to operate in Colorado after 2009.
CSA and Van Arsdale each face $5 million in civil penalties and a total of $3.8 million in restitution to nearly 2,700 consumers. Van Arsdale and the company can appeal the fines and restitution.
Last month, CSA was fined $2 million in a separate consumer fraud case and ordered to pay full refunds to 207 Vermonters totaling about $350,000 (see story).
The Colorado settlement was approved by the administrator for the Uniform Consumer Credit Code, an independent agency within Suthers' office.State officials had not been in contact with Van Arsdale or the company and no current phone listings could be found.
Consumers in line to receive restitution had contracted with Credit Solutions of America to negotiate with their creditors about the consumers' debts.