WASHINGTON—The Consumer Financial Protection Bureau (CFPB) announced that it has asked a federal district court to enter a consent order requiring Premier Consulting Group LLC to pay a fine of $69,075 for charging consumers illegal upfront fees for debt-settlement services they never received, and take other steps to prevent future legal violations.
“These companies took advantage of consumers in financial distress, charging tens of thousands of dollars for services they failed to deliver,” said CFPB Director Richard Cordray in a statement. “Charging upfront fees for debt-settlement services is against the law, and today’s action is another reminder that these illegal practices will not be tolerated.”
In May 2013, the CFPB filed a complaint in federal district court against two debt-settlement service providers, Premier and Mission Settlement Agency, as well as several related entities, including the Law Office of Michael Lupolover, which is also named in the settlement. Premier and the Lupolover Firm are New Jersey-based firms with customers in multiple states. The CFPB alleged that the companies routinely charged consumers upfront fees before settling consumers’ debts.
The illegal fees and the companies’ failures to provide effective services often caused consumers to fall further into debt and harm their credit history in the process. These practices violate the Federal Trade Commission’s Telemarketing Sales Rule, which the CFPB has the authority to enforce.
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