Debt Settlement Co. Agrees to Pay $ 1.4 Million to End CFPB Claims

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Law360 (April 14, 2021, 6:18 p.m. EDT) – Online debt settlement firm SettleIt Inc. has agreed to pay $ 1.4 million to end allegations by the U.S. Consumer Financial Protection Bureau that the company billed its clients for negotiating settlements with two creditors. was secretly affiliated with these companies and guided them to expensive loans.

The terms of a draft judgment and order, filed in federal court in California on Tuesday, would require SettleIt to set aside approximately $ 647,000 to reimburse performance fees the company collected from consumers and pay a civil fine. civil $ 750,000. The company neither admits nor denies the CFPB’s allegations.

According to the CFPB, SettleIt …

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