[co-author: Stephanie Kozol]*

On November 3, Colorado Attorney General (AG) Phil Weiser announced that his office reached a settlement with Touchstone Partners, Inc. (Touchstone), a noted debt management company. The AG’s allegations were that Touchstone had violated the Colorado Debt Management Services Act (C.R.S. § 5-19-201 et seq.).

The AG’s office maintained that Touchstone had established transactions with consumers for providing debt management services. However, these agreements were not dated and signed by the company, in violation of state law that requires these agreements to be dated and signed by both the consumer and the company. The office further alleged that a self-audit conducted by Touchstone revealed that the company failed to sign 100% of the reviewed agreements.

As part of the settlement, Touchstone is required to issue partial refunds to 71 consumers. These refunds, intended to compensate for fees collected, amount to a total of $110,152 in consumer restitution.

Why It Matters

The settlement underscores the requirement for companies to meticulously comply with the Colorado Debt Management Services Act, and that even minor violations can result in larger financial consequences.

*Senior Government Relations Manager