Jury returns $13.8 Million Verdict against The Credit Card Solution
Robert Lindsey once again came face to face with a Texas Jury who returned a several million dollar Verdict against Robert Mitchell Lindsey and his fraudulent organization, Jubilee Financial Solutions dba The Credit Card Solution.
The verdict came after charges brought against the company by the Texas Attorney General’s Office and several attempts by Mr. Lindsey to sweep his deceitful actions under the rug. His claims to erase credit card debt and help pull debt ridden consumers out of the red did nothing more than leave these consumers with more debt then when they started.
HOUSTON – A Harris County jury has returned a $13.8 million verdict against a credit repair business and its owner, finding they defrauded indebted Texans and failed to register with authorities in violation of state law. The jury found that Jubilee Financial Management LLC, The Credit Card Solution (TCCS), Freedom from Debt Alliance and Robert M. Lindsey used illegal “debt invalidation” schemes that purported to help financially struggling Texans.
According to the State’s enforcement action, the defendants assured customers that they could eliminate their credit card debts and restore their credit ratings. The defendants claimed they could help debtors exploit loopholes in the credit reporting system and pursue litigation against debt collectors for violations Fair Debt Collection Practices Act. Simply filing lawsuits, the defendants falsely claimed, would allow their customers to erase their debts and reap thousands of dollars in court-awarded damages from debt collectors.
More than 700 people paid an average of $3,000 for the defendants’ fraudulent services. Because the defendants offered nothing of value – and charged thousands of dollars for the purported services – already struggling customers were worse off financially after paying TCCS. Once a customer paid TCCS, the defendants promised to help customers send “form letters” to debt collectors and credit reporting agencies. The defendants claimed that the form letters would put the recipient on notice, which TCCS claimed would ultimately benefit customers financially.
After a week-long trial, the jury found that all four defendants violated both the Texas Deceptive Trade Practices Act and the Texas Credit Services Act. The jury also found that Lindsey and TCCS violated the Texas Business Opportunity Act. The latter violations stemmed from the defendants’ attempt to use customers to sell its fraudulent services to other financially strapped Texans. Under state law, multi-level marketers must register with the Texas Secretary of State and obtain surety bonds in order to lawfully operate in the state, but the defendants failed to do so.
Assistant attorneys general Scot Clinton and Rick Berlin represented the State of Texas in the trial. The Office of the Attorney General will continue working to identify and seize assets that will be used to satisfy the jury award.
Texans who believe they have been misled by similar practices are encouraged to call the Office of the Attorney General’s toll-free complaint line at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov.
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Final Judgment & Permanent Injunction
Filed May 27, 2011; Case No. 2009-43253State of Texas v. Jubilee Financial Solutions, LP d/b/a The Credit Card Solution; Jubilee Financial Management, LLC; Robert M. Lindsey; and Freedom From Debt Alliance
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Charge of the Court (Jury Verdict)
Filed April 20, 2011; Case No. 2009-43253State of Texas v. Jubilee Financial Solutions, LP d/b/a The Credit Card Solution; Jubilee Financial Management, LLC; Robert M. Lindsey; and Freedom From Debt Alliance
Category: Legal Actions, The Credit Card Solution
