CFPB: Debt-Settlement Firm Charged Consumers for Services it Never Delivered
A debt-settlement company will settle Consumer Financial Protection Bureau charges that it illegally charged upfront fees for service it never delivered.
As part of the settlement, Premier Consulting Group will pay a fine of about $69,000, which is equal to the amount the company took from consumers without having their debt settled.
In a May 2013 complaint filed by the Consumer Financial Protection Bureau (CFPB), Premier, Mission Settlement Agency, the Law Office of Michael Lupolover and several other entities routinely charged consumers illegal upfront fees before settling consumers' debts. The failure to provide effective services caused consumers to fall further into debt, harming their credit history.
The owner of Mission Settlement was sentenced to nine years in prison for conspiracy charges of mail and wire fraud following a criminal investigation brought by the U.S. Attorney and the Southern District of New York. The CFPB settled its civil case against Mission Settlement earlier this year.
Consumers who were harmed by these violations may be eligible for relief from the CFPB's Civil Penalty Fund in the future.