September 29, 2017

Texas secured an Assurance of Voluntary Compliance (AVC) with LowerMyBills, a lead generation company that misled consumers toward Credit Alliance Group (CAG), which falsely advertised its accreditation and debt management process. This AVC secured $2 million in restitution for eligible consumers. The attorney general’s office sued CAG in 2013 for defrauding customers out of millions of dollars entrusted to settle their debts, and for providing debt management services unauthorized by the Texas Office of Consumer Credit Commissioner, actions that cost hundreds of consumers thousands of dollars in losses. CAG claimed it would eliminate 20 to 60 percent of a consumer’s outstanding debt within three years. However, customers were charged up-front fees as high as 35 percent of the debt they owed, and CAG was found depositing customer payments into its own operating account. The attorney general’s office brought action against both LowerMyBills and CAG under the Texas Deceptive Trade Practices and Consumer Protection Act. TX

Tagged in: Financial and Investment Fraud,