Texas AG Seeks $4.6M From "Debt Settlement" Outfit For Allegedly Ripping Off Consumers, Violating State Registration & Bond Requirements

From the Office of the Texas Attorney General:

• Texas Attorney General Greg Abbott [...] took legal action to recover $4.6 million that a bankrupt “debt settlement” company wrongly withheld from its clients in Texas and other states. In June, Debt Relief USA Inc. of Addison filed for bankruptcy protection in the Northern District of Texas. As a result, more than 2,500 financially distressed customers did not receive the debt relief they were promised. In fact, debtors’ problems were exacerbated by the bankruptcy because some of Debt Relief USA’s clients received no assistance and are now being pursued by collection companies.

For the entire Texas AG press release, see Attorney General Abbott Pursues Restitution for Texans from ‘Debt Settlement’ Company in Bankruptcy Court (Bankrupt Debt Relief USA said to hold $4.6 million in client funds).

For the Texas AG lawsuit, see State of Texas v. Debt Relief USA Inc.