Friday, December 21, 2012

Cooper, CFPB partner on action against debt relief firm

About 80 North Carolinians who paid Payday Loan Debt Solutions for debt relief but didn't get help will be reimbursed following the first partnership between states and the Consumer Financial Protection Bureau, the state attorney general's office said Friday.

Attorney General Roy Cooper and counterparts in four other states went in with the fledgling financial system regulator to take the Florida-based firm to court. A federal judge in Miami ordered it to pay $100,000 in refunds. 

It's illegal in North Carolina to collect fees up-front for debt settlement services. The other states involved were Hawaii, New Mexico, North Dakota, and Wisconsin.

The CFPB described its first joint enforcement as a "landmark."