HOUSTON (April 26, 2011)--Attorney General Greg Abbott's announced Tuesday that businessman Robert M. Lindsey, Jubilee Financial Management LLC, The Credit Card Solution and Freedom from Debt Alliance must pay $13.8 million for committing fraud against hundreds of Texans.
A jury in Houston found that the four failed to register with state authorities.
Prosecutors said the companies charged 700 Texans an average of $3,000 each, claiming they could eliminate debts and restore credit ratings just by filing lawsuits.
The companies claimed they could help the residents exploit loopholes in the credit reporting system and could file lawsuits against debt collectors that would erase their debts and lead to thousands of dollars in court-awarded damages.
“Because the defendants offered nothing of value - and charged thousands of dollars for the purported services - already struggling customers were worse off financially after paying TCCS,” the attorney general’s office said in a statement Tuesday.
