DEPARTMENT OF CONSUMER AFFAIRS RECOVERS OVER $142,000 FOR CONSUMERS
Columbia, SC… …In a decision issued December 21, 2006, the South Carolina Department of Consumer Affairs (SCDCA) received legal authority to collect over $142,000 in refunds for approximately 482 consumers. SCDCA filed suit against Clean Credit USA, a credit repair company, on May 16, 2006, for operating without a credit counseling license and charging fees that exceeded what the Consumer Credit Counseling Act allows.
Clean Credit USA dissolved shortly after SCDCA filed suit, but the Department continued to petition the South Carolina Administrative Law Court on behalf of the company's customers. The order requires Clean Credit USA to refund consumers who entered a contract with the company after December 1, 2005. Additionally, the company must pay the Department $241,000 in administrative fines for violations of the Consumer Credit Counseling Act.
"The Credit Counseling Law has a purpose - to protect consumer who are experiencing financial hardship, and this is a great win for South Carolina consumers," said SCDCA staff attorney Carri Grube. SCDCA will take measures to collect the ordered refunds for consumers.
For more information, contact the Public Information & Education Division at 803.734.4190, toll free at 1.800.822.1594 or online at www.scconsumer.gov.