Colorado Attorney General John Suthers announced that he has resolved a case in which 615 state residents "were financially harmed by a Texas-based debt settlement company that was operating illegally in Colorado." The state received $225,000 in a settlement with the now-defunct CreditAnswers and CEO William Loughborough.
The Consumer Protection Section of the AG's office has entered a stipulation and final agency order with CreditAnswers and Loughborough. Both agreed to permanently stop providing debt-management services to Colorado residents as well as to pay for consumer restitution, reimbursement of legal costs, and for educational purposes.
In February 2012, Suthers' office accused CreditAnswers of providing debt management services that failed to comply with Colorado consumer protection and debt settlement laws. CreditAnswers allegedly failed to provide required consumer disclosures and cancellation notices and engaged in other violations.