Colorado’s attorney general on Thursday said 5,700 consumers victimized by debt-settlement companies will share $2.2 million in settlment money.
Cynthia Coffman’s office says the money was accumulated from companies that were providing debt settlement services in violation of the Uniform Debt Management Services Act.
“The harm to these consumers is especially egregious because the victims were desperately seeking debt management services and already in extremely vulnerable positions,” Coffman said in a statement.
According to a news release, the largest of recent settlements against a debt handler was with California-based Freedom Debt Relief, which agreed to revise the agreements and disclosures it uses with Colorado consumers.
Other debt settlement companies paying refunds include Century Negotiations Inc., Orion Financial Group and Prestige Financial Solutions, Inc.
Checks to consumers will be arriving the first two weeks of December from a third-party administrator, Coffman’s office says.
Jesse Paul: 303-954-1733, jpaul@denverpost.com or @JesseAPaul
