A Virginia-based debt settlement company must pay nearly $500,000 in restitution, civil penalties and attorney fees, an Ada County judge has confirmed.
On September 22, Judge Lynn Norton of the 4th Judicial District Court issued a ruling affirming all aspects of the court judge’s final order. idaho state treasury April 30, 2022, against Wall & Associates.
The original order found that Wall & Associates violated the Idaho Collection Agency Act by participating in unauthorized debt resolution activities. The company was ordered to repay $271,987.50 in fees charged to Idaho taxpayers, pay a $162,000 civil penalty, and repay $42,016.60 in attorney fees to the Treasury Department.
Norton issued a 62-page opinion analyzing and affirming Commissioner Patricia Perkins’ final order.
“I appreciate (Judge Norton’s) decision and the investigative efforts of his staff and attorneys,” Perkins said in a statement. “We are pleased that a favorable restitution order has been made in this case for the consumer.”
Debt settlement companies provide services such as financial counseling and tend to settle debts on behalf of consumers for less than the amount owed. Regulations are put in place by states to help the Treasury Department protect consumers and businesses from potential fraud.
The first enforcement action against the Virginia company began in December 2019 after the Treasury Department received complaints from consumers about Mr. Wall’s tax debt resolution practices. According to the department, the lawsuit “contains material that purports to assist in the settlement of Idaho tax debtors and includes substantial settlements” between the IRS and the Idaho Tax Commission. Please work together to reduce your debt. ”
They also found “a variety of questionable business practices” and found that Wall did not have a license under the Idaho Collection Agency Act to engage in debt resolution activities with consumers in the state. It turned out that it wasn’t.
Following Judge Norton’s affirmation, Mr. Wall filed a notice of appeal with the Idaho Supreme Court on November 2nd. The company has never applied for a debt consolidation license in Idaho and is not regulated by any state, the bureau said. Minnesota and Virginia have each filed consumer protection lawsuits against the company.
