A Houston based "Debt Invalidation Firm" charged with Unlawful Conduct

30 Aug A Houston based "Debt Invalidation Firm" charged with Unlawful Conduct

The Texas Attorney General recently charged a Houston-based credit repair firm with violating the Texas Deceptive Trade Practices Act (DTPA). The action filed by the Texas AG’s office names Jubilee Financial Solutions LP, also known as The Credit Card Solution, Jubilee Financial Management LLC, and the companies’ owner, Robert Mitcell Lindsey.

The defendants claimed their “debt invalidation” program could eliminate credit card debts by helping customers fight credit reporting agencies, dispute debts and sue debt collectors. They also promised access to legal services, which they claimed could get their customers monetary damages from lawsuits against debt collectors. The defendants’ marketing materials claimed their “debt invalidation” program could eliminate customers’ debt in as little as 12 to 18 months by relying upon federal consumer protection laws.

According to the Texas enforcement action, the defendants are unlawfully operating an unregistered credit services organization (CSO). Under the Texas Credit Services Organization Act, CSOs must register with the Secretary of State AND obtain a surety bond or surety account. The defendants have done neither.

The enforecement action also charges the defendants with DTPA violations, including not providing services as advertised and withholding information about goods or services when entering into a transaction. The state seeks penalties of up to $20,000 per violation of the DTPA, restitution for Texans harmed by the defendants’ business practices, and attorneys’ fees.

Court documents show the attorney general requested an asset freeze which was granted by a Harris County district judge. The state sought the asset freeze because investigators believe the defendants are improperly withholding $500,000 in customers’ payments that should have been applied to debt relief services.

Texans who believe they have been deceived by these defendants or other companies with similar fraudulent business practices should call the Office of the Attorney General at 1-800-252-8011 or file a complaint online at www.texasattorneygeneral.gov.

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