Missouri Attorney General Chris Koster this week reached a consent judgment with Florida-based debt settlement firm Vortex Debt Group Inc., which allegedly engaged in deceptive and unfair practices.
According to the judgment, Vortex Debt Group allegedly promised to reduce consumers' debts in exchange for fees, but the company failed to actually reduce the debts.
The judgment prohibits Vortex Debt Group from accepting future business from Missourians and orders the company to refund fees paid by Missouri consumers who submit complaints to the attorney general's office within one year.
Koster's office will send notices in the coming weeks to the approximately 300 Missourians who signed up for the Vortex services, the release said.
Koster cautioned consumers against debt-settlement companies.
"I urge Missourians experiencing debt problems to contact a not-for-profit consumer counseling agency or to seek competent legal representation from a consumer bankruptcy attorney in order to deal with debt-related issues," he said in the release.
Under Missouri law, it is illegal for debt-settlement companies to collect upfront fees before providing the service, according to Koster.
Consumers complaints can be filed on the attorney general's
Web site.
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