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Volume 25 - Number 18

September 1, 2014

Debt-Settlement Firm Agrees to $7 Million Accord With CFPB

Global Client Solutions, a leading debt-settlement payment processor based in Tulsa, OK, agreed to pay over $6 million in relief to consumers, as well as a $1 million civil penalty, to resolve allegations by the CFPB that the firm helped other companies to collect tens of millions of dollars in illegal upfront fees from consumers. Final settlement is pending federal district court approval. The CFPB accused Global Client Solutions and its two principals, Robert Merrick and Michael Hendrix, of violating the Telemarketing Sales Rule by making it possible for debt-settlement companies to charge consumers illegal upfront fees. The rule prohibits debt-settlement companies from charging consumers advance fees before settling any of their debts. The rule is intended to protect consumers ...

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With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

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