Debt Consolidation Company Sued by Vermont for Over $2 Million

Published on:
3 April 2012 at 07:08 a.m. ET

Written by: Mike Bevel –

http://www.insidearm.com/news/00038420-debt-consolidation-company-sued-by-vermon/

Turns out, you’ve got to actually deliver on your advertised offers — that’s the lesson Dallas-based CSA-Credit Solutions of America learned after it was effectively sued by Vermonters.

A Texas judge found CSA allegedly responsible for consumer fraud and has ordered the debt consolidation company to pay $2 million in penalties and refund $350,000 to over 200 Vermont residents, according to a story in Vermont’s Times Argus.

Vermont has pretty strong consumer protection laws — and those were used in force when bringing the action against CSA. At issue were the company’s claims that it could reduce a consumer’s debt “60 percent in seconds!” as well as taking its fees upfront before settling any consumer debt.

CSA has the distinction of being the first debt consolidation company taken to court in Vermont.