Business ProfileforSettle It

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On February 15, 2022, J. Paul Reddam, entered into a Stipulated Consent Judgment with the Arizona Attorney General. The Judgment settles allegations that Reddam engaged in deceptive or unfair act or practices, fraud, false pretense, false promise, misrepresentation or concealment, suppression or omission of any material fact with intent that others rely on such concealment. Under terms of the Judgment, Reddam agrees to pay $4,830,000 in restitution to Arizona Consumers who took out personal loans with interest rates as high as 169 percent. 

This action is final.  

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On July 2, 2021, Settle It Inc entered into a Stipulated Final Judgment and Order with the Consumer Financial Protection Bureau. The Judgment and Order settles allegations that the business engaged in abusive acts or practices, failed to clearly and conspicuously disclose total cost, made misrepresentation of total cost, and failed to obtain consent before accepting fees. The business is allege to have taken advantage of consumers, failing to disclose its relationship to certain creditors, and steering consumers into high cost loans offered by affiliated lenders.

Under terms of the purposed Final Judgment, the business may not take unreasonable advantage while performing any Debt Relief Product or Services by not settling debts owed to CashCall Inc, LoanMe Inc or any company with which it shares direct or indirect ownership; for all "Fresh Start" loans, the business must disclose to consumers its affiliation with any provider of these loans; and for all Affected Consumers with currently enrolled debts to CashCall, Inc or LoanMe Inc, the business must inform them that it will no longer seek to settle those debts. The business must comply with the Telemarketing Sales Rule, which includes: for all "Fresh Start" loans, disclosing to consumers the amount to be disbursed to SettleIt out of the loan proceeds and the amount to be disbursed on behalf of the consumer to any third parties; not charging settlement-performance fees unless a consumer has first authorized a particular settlement; clearly and conspicuously disclose to consumers the estimated cost of its services in proximity to its disclosure of the estimated settlement amount; and not misrepresenting any fact material to consumers, such as the total costs and any material restrictions, limitations, or conditions. 

The business must return $646,769.43 in fees to consumers, and pay $750,000 for a civil penalty. The Assurance was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.

This action is final.