(WFRV) – A Los Angeles-based debt adjustment service company is required to pay more than $300,000 in consumer restitution for operating in Wisconsin without a proper license.
The announcement was made by Wisconsin’s Attorney General Josh Kaul on November 22, which reported that American Tax Solutions is required to pay more than $328,000 in consumer restitution and forfeitures.
The Consent Judgment settles allegations that American Tax sent tens of thousands of illegal mailers to Wisconsin consumers and operated as a debt adjustment service company in the state without a proper license.
“Wisconsin Department of Justice (DOJ) works hard to get justice for victims of deceptive practices, and we are glad that consumers will be refunded,” said Attorney General Kaul. “Thank you to DATCP, DFI, and all Wisconsin DOJ employees who worked to get justice in this case.”
The complaint alleges that American Tax sent deceptive mail solicitations designed to look like threatening notices from government tax collection authorities that warned that the recipients could have their property seized, their Social Security benefits suspended, or be charged with a crime if they did not respond to the letters.
Authorities say that when the victims called the number provided on the mailers, they were reportedly connected with American Tax’s sales representatives who attempted to sign callers up for tax resolution services.
“We are pleased to reach this settlement that puts an end to the deception and provides some refunds to Wisconsin consumers,” said Wisconsin Department of Financial Institutions (DFI) Secretary-designee Cheryll Olson-Collins.
Under the terms of the Consent Judgment, American Tax is banned from sending mail solicitations, and from selling any services, to Wisconsin consumers.
American Tax has also agreed to pay more than $119,000 to fully refund 37 of its Wisconsin customers and nearly $210,000 in forfeitures, assessments, and costs.