Facts

The Consumer Financial Protection Bureau filed suit against Vincent Howard, Lawrence Williamson, Howard Law PC, The Williamson Law Firm LLC, and Williamson & Howard LLP, in relation to defendants' fee collection practices.

PLAINTIFF'S CONTENTIONS: The Bureau alleged defendants operated a debt relief scheme by collecting exorbitant and illegal advance fees from consumers, soliciting consumers with large sums of debt and promising that defendants' lawyers would achieve affordable repayment options. The Bureau further claimed defendants collected millions of dollars in unlawful fees pursuant to this scheme, and defendants often failed to settle consumers' debts whatsoever. As such, the Bureau brought suit under the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Telemarketing Sales Rule, and various sections of the Consumer Financial Protection Act of 2010.

DEFENDANTS' CONTENTIONS: Defendants neither admitted nor denied the Bureau's allegations.

Result

A consent decree to which the Bureau and defendants agreed was issued to resolve all disputes between the parties arising from the conduct alleged in the Bureau's complaint. Pursuant to the consent decree, defendants agreed to cease various telemarketing and debt relief products and services, along with ceasing their offering of consumer financial products or services. Defendants also agreed to pay over $35.25 million to redress affected consumers for unlawful advance fees they previously paid defendants. In addition, defendants agreed to pay a civil penalty of $40 million to the Bureau, but full payment would be suspended upon defendants' satisfaction of various obligations set forth in the consent decree.