Texas AG Settles with Lead Generator Accused of Directing Customers to Fraudulent Debt Management Services

Debt Collection

On September 29, 2017, the Texas Attorney General (Texas AG) announced that it reached settlement in the form of an Assurance of Voluntary Compliance with a lead generation company that directed business to a debt relief company that the Texas AG sued in 2013 for providing fraudulent and illegal debt-relief services.

The Texas AG filed a complaint against the lead generation company in December 2014 for violations of the Texas Deceptive Trade Practices and Consumer Protection Act, Tex. Bus. & Comm. Code Ann §§ 17.41, et seq., and Chapter 394 of the Texas Finance Code.  The complaint alleged, among other things, that the company misrepresented to customers its own involvement in the debt management process and the service provider’s ability to legally perform debt management services.

 

The lead generation company agreed to pay $2,000,000 in restitution to harmed consumers and $200,000 to the State of Texas for attorneys’ fees and costs.

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