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Over $700,000 Recovered for South Carolina Consumers from Debt Settlement Company

Columbia, SC - In a settlement reached, a Texas company has voluntarily agreed to give partial to full refunds for 448 customers in South Carolina who entered into a contract with the company after December 1, 2005. The company, regulated under the provisions of the South Carolina Consumer Credit Counseling Act, failed to obtain a license from the South Carolina Department of Consumer Affairs (SCDCA), as the Act stipulates, and charged fees to consumers that exceeded those allowed by the Act.

This is the single largest recovery from an out-of-state agency since the Credit Counseling Law went into effect, according to SCDCA Administrator Brandolyn Thomas Pinkston. "The naysayers said we wouldn't be able to go across state lines and recover funds for South Carolinians, but our diligence is paying off," she said. "This is a great win for South Carolina consumers."

Carri Grube, SCDCA staff attorney, stated that while most credit counseling organizations can provide financially distressed individuals with valuable assistance, regulation of the industry is necessary to thwart businesses that mislead or exploit consumers. "The Credit Counseling Law has a purpose - to protect people in our state who are experiencing financial hardship," she said.

Trube said that the Texas-based debt settlement company fully cooperated with the Department of Consumer Affairs.