In a recent announcement, Colorado Attorney General Phil Weiser detailed an agreement reached between the Colorado Department of Law and Touchstone Partners, Inc., a debt management company based in Florida. The agreement resolves violations by Touchstone of the Colorado Debt Management Services Act (DMSA).
Touchstone is expected to refund more than $110,000 in fees collected from consumers as a part of the agreement. The settlement is a reminder of the legal consequences institutions may face when they breach consumer protection laws.
The disclosure of this agreement underscores the need for enforcement in the debt management industry and alert debt management companies to comply with the regulations set forth by the DMSA. It also calls attention to the real-life implications these violations can have on borrowers, who often rely on these services to navigate their financial hardships.
The specifics of Touchstone’s violations were not immediately detailed by Attorney General Weiser. It is clear, however, that the company’s actions breached Colorado Debt Management Services Act, enacted to protect consumers interacting with debt management companies.
The Colorado Department of Law strives to ensure debt management companies are operating legitimately and are not exploiting consumers. These regulations set standards on transparency, fee structures, and business practices to better guard consumers and instigate competition in the debt management industry.
It remains to be seen what forthcoming effects this case will have on the operations of debt management companies, nationally and in Colorado. However, reflecting on the past is an important part of preparing for the future: legal professionals in debt management companies should take this case as a crucial reminder of the need for compliance with the sets of regulations in place to protect consumers.
For more details on the agreement, check out the full article written by Ballard Spahr LLP: Debt Management Company to Pay $110k in Refunds to Customers under Agreement with Colorado Attorney General’s Office.