A settlement has been reached between the Colorado Attorney General’s Office and Veracity Credit Consultants LLC.
The Denver-based company is barred from charging upfront fees in exchange for credit-repair services as well as misleading consumers about the ability to cleanse consumers’ credit reports.
Under the agreement announced today, Veracity Credit Consultants must pay the state $400,000 in restitution, costs and fees.
The money will be distributed among the victims. “We don’t have a hard number yet, but they will number in the thousands,” said attorney general spokesman Mike Saccone. “We have not worked out the restitution.”
The settlement follows a February 2010 lawsuit the state filed against the company. The company, according to the complaint, required that consumers pay an initial setup fee of up to $99 and monthly fees of up to $79. Under Colorado law, a credit-repair firm can only charge fees once its services are complete.
