The Westminster-based company that ran infomercials on local radio stations and was accused of bilking customers attempting to get out of debt has been permanently barred from selling, marketing or advertising debt-relief services and has agreed to pay $226,414.
Colorado Attorney General John Suthers announced the settlement with Real Talk Network and David Allen Burke and Melodie Rose Burke, both 42.
The first $200,000 is to be used for consumer restitution. The final $26,414 is to be used by the consumer protection unit of the Attorney General’s Office to help provide consumer education and anti-trust enforcement.
Real Talk Network ran infomercials on 630 KHOW and Christian talk station 94.7 KRKS and stations in California. The infomercials were presented as a program called “Get Real with Dave,” hosted by company president David Burke, according to the company’s website.
The injunction doesn’t prohibit the Burkes from being employed in the financial services industry which includes banks, credit unions, insurance companies or investment firms.
But it does bar them from selling, marketing or advertising debt consolidation, debt elimination, credit repair, debt settlement and related counseling in an effort to obtain money directly from consumers.
When Suthers sued the company last year, he alleged that Real Talk Network ran infomercials in which the network and its officers were suspected of telling consumers that they could get out of debt in a short period of time, pay off their mortgages in less than 10 years and “explode” their credit scores by following the company’s program.
The Attorney General’s office said the Real Talk Network was suspected of advertising a 100 percent success rate of participants.
The defendants entered the settlement to avoid the expense of litigation. The settlement is not to be considered an admission by the defendants of any liability.
The Better Business Bureau gave the Real Talk Network a grade of F, citing 116 complaints filed against the company since it began in 2004.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.
