AUGUSTA, Maine (AP) — The state of Maine has reached an agreement with a Texas debt management company to settle allegations of unfair trade practices.

Attorney General William Schneider said Tuesday that the settlement with Credit Solutions of America Inc. and its owner Douglas Van Arsdale was reached after two days of trial that began July 18. The settlement resolves claims related to an advance-fee debt-settlement scheme.

Schneider says the company has provided debt management services to Maine consumers in exchange for fees of up to 15 percent of the negotiated debt.

In the consent judgment, Credit Solutions agrees not to accept payments in advance of services and will not enter enrollment contracts with new Maine consumers. It must also pay $150,000 for the costs of investigation and litigation related to the case.


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