Debt Adjusters

The Vermont Debt Adjusters Act, 8 V.S.A. ch. 133, provides that “no person shall engage in the business of debt adjustment except as authorized by this chapter and without first obtaining a licnese from” the Commissioner of the Vermont Department of Banking, Securities and Health Care Administration (“BISHCA”).

In 2010, the Vermont Legislature passed Act 137 which clarified the definition of “debt adjustment” in existing law (see sections 2 and 29 of the Act).

Right to Cancel: The Vermont Debt Adjusters Act, 8 V.S.A. § 4869a, provides consumers with the right to cancel a debt adjustment contract “until midnight of the third business day” after the consumer signs the debt adjustment contract.

In addition, the Vermont Consumer Fraud Act, 9 V.S.A. § 2454, and Vermont Consumer Fraud Rule 113 may also require specific right to cancel provisions in a debt adjuster contract.

Consumer Fraud: Some representations offered by debt adjuster companies in advertising and other marketing may violate the Vermont Consumer Fraud Act’s prohibition on unfair and deceptive trade practices, 9 V.S.A. § 2453(a).

Representations by a debt adjuster company that it could achieve a particular result (for example, a claim that the debt adjuster could lower outstanding debt by a certain percentage) have been found to be in violation of the Vermont Consumer Fraud Act when the representations cannot be supported by prior reasonable substantiation as to the typicality of the results.

BISHCA’s licensing database – use to check license status of debt adjuster

For more information on debt adjusters, please visit the Consumer Assistance Program’s debt adjusters and settlement page

Enforcement Actions and Settlements

The Vermont Attorney General has settled or litigated the following enforcement actions since February 2009. Click on the links below to find the court documents and press releases in each case.

SCF State Capital Financial, Inc.: Assurance of Discontinuance and press release. July 16, 2010

The Mossler Law Firm, P.C.: Assurance of Discontinuance and press release. July 8, 2010

Credit Alliance Group, Inc: Assurance of Discontinuance. March 10, 2010

Debt Settlement America: Assurance of Discontinuance and press release. January 27, 2010

Financial Freedom of America: Assurance of Discontinuance and press release. November 25, 2009

Debt Settlement USA: Assurance of Discontinuance and press release. November 13, 2009

Credit Answers, LLC: Assurance of Discontinuance and press release. October 9, 2009

Liberty Settlement Group: Assurance of Discontinuance and press release. October 9, 2009

Clear Your Debt: Assurance of Discontinuance and press release. July 23, 2009

Century Negotiations: Assurance of Discontinuance and press release. July 2, 2009

Debt Remedy Solutions, Inc. : Assurance of Discontinuance and press release. May 27, 2009

Boston Debt Solutions, LLC: Assurance of Discontinuance and press release. February 26, 2009