Attorney General Roy Cooper has ordered debt settlement firm World Law Group to stop collecting what his office says are illegal upfront fees.
Cooper filed a lawsuit this week against Swift Rock Financial of Austin, Tex., which also operates as World Law Group, and the company's owner, Derin Scott.
Wake County Superior Court Judge Howard Manning Jr. on Thursday approved Cooper's request to halt World Law Group from offering debt settlement services in the state. The company can't enter into contracts with consumers while the case is going forward.
Cooper is seeking to stop the company's practices as well as get refunds for consumers.
North Carolina consumers have paid more than $4.1 million in debt settlement fees since 2010 to the firm, according to the AG's complaint. World Law Group collected more than $2.6 million for itself and used only $527,00 to pay consumers' creditors.
“Schemes like this dig consumers deeper into debt and also tie up our courts with bogus legal claims,” Cooper said in a statement. “Consumers struggling to tackle their debts deserve legitimate help, not someone trying to make a quick buck off of them.”