A Texas debt adjustment firm has agreed to pay a fine to the Georgia Governor’s Office of Consumer Affairs (OCA) to settle charges that it violated state law.
Under the agreement, Debt Relief USA Inc. will refund $527,205.55 in fees to 330 Georgia residents and pay $40,000 to the state for expenses. It will also cease operations in the state until it practices comply with the Georgia Debt Adjustment Act, according to the OCA.
Georgia regulators alleged that the company fialed to pay its clients’ creditors within 30 days of receipt and did not maintain separate trust accounts and insurance for each customer, as required by the act.
The company also allegedly charged more than 7.5 percent that the law allows debt adjusters to take from the amount customers pay to their creditors each month.
