Class Claims ‘Debt Settlers’ Overcharge

SPOKANE (CN) – A federal class action claims Oklahoma-based Global Client Solutions charges illegal fees for its “debt settlement program.” The class claims Global is allowed to charge up to $25 for its initial services, but the lead plaintiffs – two married couples – say they were charged $6,944 and $2,053 up front.

     Global works with more than 400 debt adjusters and manages more that 600,000 accounts, according to the complaint. It claims to help consumers settle credit card debts through monthly payments.
     The class claims Washington’s Debt Adjusting Statute prevents debt collectors from retaining more than 15 percent of a debtor’s payment. But Global’s “program fees typically consumed the entirety of the initial monthly payments made by the debtor,” according to the complaint.
     Global had authority to send the debtors’ money to Rocky Mountain Bank & Trust, a Colorado bank, but closed those settlement accounts on Aug. 6 without notifying the debtors, according to the complaint.
     The class demands punitive damages. They are represented by Darrell Scott.

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