January 30, 2007
Some people in the Palmetto State are getting back a lot of money, courtesy of the Department of Consumer Affairs.
The department says it recovered more than $100,000 for hundreds of people just about month ago. Now they say they have permission to refund a whole bunch of money to people who were customers of a credit repair company.
A spokesperson says Clean Credit USA has to refund $142,000 to nearly 500 customers.
The state says it was a business that operated without a credit counseling license, and it charged fees that went well beyond what the Consumer Credit Counseling Act allows.
The refund will be coming to customers who entered into a contract with the company after December 1, 2005.
And on top of all that money, the company will have to pay $214,000 in fines.
All in all, the Department of Consumer Affairs says this is a big win for people in South Carolina, primarily because the credit counseling law is in place to protect people who are experiencing financial difficulties...not hurt them more.