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Debt Settlement Services

Shipkevich PLLC

North Carolina Legislative Alert: Lawmakers Propose Act to License, Examine, and Regulate Debt Settlement Services

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On March 25, 2025, North Carolina Senators Johnson (R), Overcash (R), and Jackson (R) as primary sponsors introduced Senate Bill 491 (“S.B. 491” or the “Bill”), which seeks to license, examine, and regulate debt settlement...more

Morrison & Foerster LLP

CFPB Signals Continued Involvement in Litigation with State Attorneys General

While the Consumer Financial Protection Bureau (“CFPB”) may have halted certain operations, it is remaining active in certain litigation, including cases brought by multistate attorneys general. Recently, the CFPB signaled...more

Shipkevich PLLC

California Proposes Legislative Amendments to Expand Debt Settlement Regulation to Certain Business Debt Settlement Providers

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On February 24, 2025, California Assemblymember Avelino Valencia (D-Anaheim) introduced Assembly Bill (AB) 1166, which seeks to amend and expand the state’s existing Fair Debt Settlement Practices Act (the “Act”) to include...more

Clark Hill PLC

What Debt Settlement Companies Need to Know When Working With Third Party Payment Processors (Whitepaper)

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Clark Hill’s Financial Services and Regulatory Compliance Group has authored a whitepaper for debt settlement companies considering engaging a third-party payment processor for managing accounts and handling financial...more

Shipkevich PLLC

CA DFPI Registration Requirements Under CCFPL for Debt Settlement Companies and Service Providers

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On October 11, 2024, the California Office of Administrative Law approved and filed with the California Secretary of State proposed regulations by the California Department of Protection and Innovation (“DFPI”) to establish...more

BCLP

California Requires Consumer Finance Providers to Register by February 15

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The California Department of Financial Protection and Innovation (“DFPI”) announced new requirements pursuant to the California Consumer Financial Protection Law (“CCFPL”) for registration of certain consumer financial...more

Shipkevich PLLC

Post-Election Analysis and Its Impact on the Debt Settlement Industry

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Discover insights from regulatory attorneys, Felix Shipkevich and Yvonne Bowser-Caballero of Shipkevich PLLC, who recently hosted this webinar to discuss a post-election overview of the regulatory state of the debt settlement...more

Sheppard Mullin Richter & Hampton LLP

CFPB’s Settlement Imposes Permanent Ban on Defunct Student Loan Relief Company and Its Owner

On December 3, the CFPB filed a proposed settlement to resolve a long running lawsuit against a student loan relief company and its owner (collectively, the “Defendants”). The settlement bars the company from offering or...more

Shipkevich PLLC

[Webinar] Post-Election Analysis and Impact on the Debt Settlement Industry - December 10th, 1:00 pm EST

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Felix Shipkevich and Yvonne Bowser-Caballero of Shipkevich PLLC, with special guest Nicholas Kosmas, Chief Legal Officer of ClearOne Advantage LLC, will host a webinar to discuss a post-election overview of the regulatory...more

Sheppard Mullin Richter & Hampton LLP

California DFPI Rolls Out Registration Requirements for Debt Settlement, EWA, and Student Loan Relief Providers

On October 22, the California DFPI announced the state’s approval of registration regulations enacted under the CCFPL, which will require providers of (1) debt settlement services, (2) education financing, (3) income-based...more

Ballard Spahr LLP

California Finalizes Registration Requirements for Providers of Earned Wage Access, Other Financial Products and Services

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On October 11, California’s Office of Administrative Law (“OAL”) approved the Department of Financial Protection and Innovation’s (“DFPI’s”) registration rulemaking for providers of the following products...more

Troutman Pepper Locke

Minnesota Attorney General Shuts Down Debt Settlement Companies

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On October 21, Minnesota Attorney General Keith Ellison announced a settlement with two debt settlement companies, Financial Solutions Group and Accelerated Debt Settlement....more

Cozen O'Connor

Minnesota AG Secures Order Against Tax Debt Settlement Company

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Minnesota Attorney General Keith Ellison has secured a court order against Wall & Associates, Inc., and associated individuals (collectively “Wall”) for their involvement in an alleged tax debt settlement scheme in violation...more

Shipkevich PLLC

CA DFPI Approves Third Set of Proposed Regulations for the Registration of Debt Settlement Companies and Other Providers

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On October 11, 2024, the California Department of Financial Protection and Innovation (DFPI) approved regulations submitted to the California Office of Administrative Law (OAL) under its authority granted by the California...more

Shipkevich PLLC

Colorado Bankruptcy Trustees Target Debt Settlement Service Providers with Ambitious Interpretation of Statutory Damages

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Colorado bankruptcy trustees have recently been increasing their focus on debt settlement companies and attorneys alleged to be performing services in violation of the Colorado Uniform Debt-Management Services Act (“CUDMSA”...more

Troutman Pepper Locke

Pennsylvania AG Settles With Debt Services Law Firm

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Pennsylvania Attorney General (AG) Michelle Henry reached a settlement with attorney Erik Helbing and his business, Helbing Law Group, LLC, resolving allegations of deceptive advertising practices and failure to effectively...more

Ballard Spahr LLP

Pennsylvania AG Settles with Law firms over Alleged Deceptive Debt Settlement Services

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On January 24, 2024, Pennsylvania Attorney General, Michelle Henry announced a settlement with attorney Erik M. Helbing and his businesses Helbing Law, LLC, and Consumer Law Relief, LLC. (Respondents) to resolve alleged...more

Shipkevich PLLC

2023 Regulatory Recap of the Debt Settlement Industry Activity and 2024 Regulatory Forecast

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This article highlights the few newsworthy actions and events we wrote about the debt settlement industry throughout the year. The debt settlement industry did see some movement by regulatory bodies across the board, though...more

Mayer Brown

Licensing Link - The Latest Insights in Licensing Laws

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Welcome - Welcome to the first edition of Licensing Link, a new periodic publication that will keep you informed on hot topics and new developments in state licensing laws, and provide practice tips and primers on...more

Shipkevich PLLC

California DFPI Proposes Regulation to Implement Registration Requirements for Entities Covered Under California Consumer...

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The California Consumer Financial Protection Law (“CCFPL”), established in September of 2020 under Governor Newsom, augmented the Department of Financial Protection & Innovation’s (“DFPI”) authoritative ability by increasing...more

Troutman Pepper Locke

Payment Processor Settles With Massachusetts Attorney General for Prematurely Sending Fees to a Debt Settlement Company

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On November 7, Massachusetts Attorney General Maura Healey announced a $600,000 settlement with Oklahoma-based payment processor Global Holdings. Attorney General Healey claimed that Global Holdings violated the Massachusetts...more

Cozen O'Connor

The State AG Report – 6.9.2022

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Here are last week’s curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: AG Bonta Secures Appellate Decision Blocking...more

Cozen O'Connor

AG Morrisey Recovers $500,000 from Debt Settlement Attorney

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West Virginia AG Patrick Morrisey has reportedly reached a settlement with California attorney Thomas Moore to resolve allegations that his legal corporation, Moore Legal Center, violated West Virginia’s Consumer Credit and...more

Goodwin

North Carolina AG Permanently Enjoins Debt Settlement Business

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On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor. The lawsuit, filed on June 25, 2021 in the...more

Sheppard Mullin Richter & Hampton LLP

No Relief in Sight: CFPB and FTC Continue to Take Action Against Debt Settlement Companies

On April 29, the CFPB filed a proposed order in federal court seeking final judgment against three California-based defendants for engaging in unlawful fee-charging practices and deceptive telemarketing. According to the...more

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