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Judge orders credit counselor to pay $126K

Apr. 03, 2013 @ 06:30 AM

CHARLESTON, W.Va. (AP) — A Kanawha County judge has ordered a now-defunct credit counseling agency and its owner to pay more than $126,000 for collecting excessive fees from West Virginia customers.

Attorney General Patrick Morrisey announced the judgment against North Carolina-based Family Credit Counseling Corporation and James R. Armstrong on Tuesday.

State law allows companies like Armstrong’s to charge no more than 7 percent of the monthly amount it collects from customers to pay their creditors. Circuit Judge James C. Stucky found that Armstrong’s company overcharged 250 West Virginia customers a total of nearly $96,000 in upfront fees and more than $30,000 in monthly fees.

Some consumers complained that payments to the company were not distributed to their creditors, or were distributed late.
 

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