The Federal Trade Commission this week is sending an estimated $90,000 in total refunds to 2,900 victims of a company that allegedly marketed worthless debt management services, before being found in contempt for violating a court order barring its activities.
The reimbursement stems from a February 2009 contempt finding against Florida attorney Randall L. Leshin, and his debt management services company, Express Consolidation Inc. In its contempt ruling, the court found that the defendants violated a 2008 order by continuing to do business in states where they were unqualified, and by collecting fees from consumers who had cancelled their debt management plans.
The 2008 order resulted from a case the FTC filed in 2007 against Leshin and his company. The complaint alleged that the defendants misrepresented their non-profit status, charged hidden fees, and misled consumers about the benefits of enrolling in a debt management plan. Under the 2008 order, the defendants were prohibited from the illegal conduct and from operating in states where they were not qualified to do business.
The checks to consumers, averaging just more than $31 each, are valid for 60 days from the date they are issued.
