On May 26, 2022, the North Carolina Attorney General (NC AG) announcement that he got a fault judgement against a California-based debt settlement company and its owner. The lawsuit, filed June 25, 2021, in the North Carolina Superior Court for Wake County, alleged that the entity violated the North Carolina Debt Adjustment Act, NC Gen. Stat. ?§ 14-423, and following., and North Carolina Unfair and Deceptive Trade Practices Act, NC Gen. Stat. § 75-1.1. Specifically, NC AG alleged that defendants unlawfully collected fee advances for its services and misrepresented that it would reimburse consumers in the event that it could not obtain loan modifications or prevent seizures. The NC AG further alleged that the defendants falsely stated that their company would operate as an intermediary to help reduce consumer mortgage repayments and to help consumers avoid foreclosure or obtain forbearance. According to NC AG, the defendants never provided these services and never reimbursed the initial costs to consumers.
In default, court permanently barred defendants from engaging in or advertising debt settlement or debt relief services, and from making mortgage loan modifications and input assistance. The court also ordered the defendants to pay $5,046 in restitution to North Carolina consumers and $5,000 in civil penalties for each alleged violation of the Unfair and Deceptive Trade Practices Act (for a total of $15,000). .
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