On March 21, 2012, a state judge in Vermont ordered a Texas-based debt consolidation company to repay more than 200 people a combined $350,000 and to pay about $2 million in penalties. The consumer fraud lawsuit alleged that the company known as CSA – Credit Solutions of America, LLC used unsubstantiated advertising claims to get debtors to use their services. Specifically, CSA is accused of advertising that it could reduce debt by “60 percent in seconds” and not being able to perform in accordance with that advertisement.
This lawsuit was brought by the Vermont Attorney General’s Office against CSA – Credit Solutions of America, LLC and the business owner and Chief Executive Officer Doug Van Arsdale. An Assistant Attorney General on the case claims that CSA solicited most of its Vermont clients through its website and took upfront fees before it took any actions to reduce clients’ debts.
In Vermont, this debt consolidation company consumer fraud case is significant because it is the first time the state has had to enforce its consumer fraud laws against a debt consolidation company in court. In recent years, the state has reached out-of-court settlements with about a dozen other debt consolidation companies.
Around the country, the case is significant in large part because of other cases pending. A number of other states have lawsuits pending against CSA and similar types of companies.
Our Minneapolis debt consolidation lawyers hope debtors who may have been harmed through dealings with CSA, or other debt consolidation companies, soon have their matters resolved.