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Colorado Department of Law — Annual Report 2009 - page 9 / 41





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Colorado Department of Law — Annual Report 2009

provide immigration services (without a law license) but actually provide little more than the governmental application forms readily available at the actual the

    • U.

      S. Customs and Immigration Service Web site. We obtained a preliminary injunction order preventing the Immigration Center and Doucette from continuing to market their legal services. A trial is set for May.

  • State of Colorado v. Legal Aid Daniel Ketelson We sued and obtained a default judgment against this Colorado based Internet company offering to provide “legal services” to consumers across the country. Consumers paid thousands of dollars for advertised legal services for work performed by non-lawyers that often times was rejected by the courts.

Consumer Credit, Debt Settlement and Collection Agencies

The Consumer Credit Unit enforces six state credit-related laws: the Uniform Consumer Credit Code (consumer finance) including the Consumer Equity Protection Act (predatory lending) and the Deferred Deposit Loan Act (payday loans), the Fair Debt Collection Practices Act (collections), the Debt-Management Services Act (debt management/settlement), the Credit Services Organization Act (credit repair) and the Rental Purchase Agreement Act (rent-to-own).

During 2009, Unit attorneys:

  • Supervised 1,043 licensed lenders consisting of payday lenders (47 percent), mortgage companies (39 percent), finance companies (12 percent), and small installment and other lenders (2 percent).


  • Enforced credit laws against other creditors, including 987 companies that file notification and collect their own credit contracts.

  • Conducted 699 compliance examinations of licensed lenders and required them to take corrective action and refund overcharges as appropriate.

  • Investigated 459 written consumer complaints against licensed lenders, creditors, and credit repair companies, including 72 against payday lenders.

  • Refunded more than $1.6 million in overcharges to consumers from compliance examinations, investigations, and legal and administrative actions of lenders, creditors, and credit repair companies, including $994,315 from payday lenders. Collected $241,000 in penalties, educational funds and cost reimbursements, including $42,500 from payday lenders.

  • Investigated or litigated 20 cases against lenders, creditors and credit repair companies, including a payday lender’s failure to comply with the payment plan law, mortgage and loan servicers charging consumers non-permitted fees when they paid by telephone or online, and unlicensed lending.

  • Registered 46 credit counseling and debt settlement companies under the Debt Management Services Act.

  • Investigated or litigated 22 cases against debt management companies for excessive fees and unregistered activity. Obtained refunds of $1 million in enrollment fees for Colorado consumers and penalties of $354,250.

  • Sent nine cease and desist advisory notices to unlicensed payday lenders.

  • Sent six cease and desist advisory notices to unregistered debt management companies.

  • Continued to litigate a case against a lender that makes small installment

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