Consumer Finance Insights
February 10, 2021

Delaware AG Files Lawsuit Against Debt-Management Services Company

On February 8, 2021, the Delaware Attorney General (Delaware AG) announced that it filed an administrative lawsuit against a California-based debt-management services company for allegedly violating the Delaware Uniform Debt-Management Services Act, the Delaware Consumer Fraud Act, and the Delaware Deceptive Trade Practices Act.

According to the Delaware AG, ​​the debt-management company used misleading advertising to target elderly and low-income Delaware residents.  The company then allegedly arranged for a Delaware notary to travel to consumers’ homes as a “representative” of the company.  During these visits, the notaries allegedly would present consumers with the company’s debt settlement contract, which was titled as a “Legal Services Agreement” and referred to the company as a “law firm” despite the fact that the company was not a law firm and employed no Delaware attorneys.  The Delaware AG further alleges that the agreements contained hidden, duplicative, and misleading fees.

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