Settlement Company Banned

July 10, 2013
Lebanon Express (OR)  

The Oregon Department of Justice and the Oregon Department of Consumer and Business Services together obtained a court order that prohibits World Law Debt and several of its affiliates from conducting business in the state. The two agencies accused World Law Debt, a Texas-based debt settlement company, of violating Oregon’s Unlawful Trade Practices Act by imposing excessive fees and inaccurately claiming that it had Oregon attorneys on staff to handle client cases. The lawsuit also alleges that World Law Debt collected $1.5 million from Oregon clients but paid just $275,211 to their creditors and kept more than $960,000 in fees. A temporary restraining order prohibits World Law Debt and its affiliates from doing business in Oregon, and the state will seek a longer-term ban later this month. Oregon's Department of Consumer and Business Services fined World Law Debt $70,000 last September for failing to register before doing business in the state. The company has not paid the fine and remains unregistered, according to the lawsuit. The Department of Justice is seeking more than $10 million in civil penalties, and the state is also demanding World Law Debt fully refund its Oregon customers.
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