A regulator friend of mine just forwarded me a copy of the State of Washington amicus brief filed in a class action case I reported about previously. The case is Carlsen v. Global Client Solutions and Rocky Mountain Bank & Trust. – Source
The State of Washington weighed in on the matter and make some strong statements that do not shield escrow companies of potential liability when working with debt settlement companies that violate the law.
Everything below is from the amicus brief filed. You can read the full brief here.
- Washington says Debt Adjusting Act and fee limits apply to the debt settlement companies that Global Client Solutions and Rocky Mountain Bank & Trust work with and serve.
- State there is a private cause of action against Global and Rocky if the helped debt settlement companies violate the Debt Adjusting Act.
- States that aider and abettors can be civilly liable for assisting others to violate the Debt Adjusting Act.
- States holding Global and Rocky accountable is important.
- Debt settlement companies are debt adjusters and statutory fees in Washington apply to them.
- There is an implied cause of action under 874A and Bennett against Global and Rocky for aiding and abetting debt settlement companies that violate the debt adjusting act.
- Helping debt settlement companies violate the Debt Adjusting Act can also result in aiding and abetting liability.
- “If Global and Rocky provided the means and instrumentality to violate the law, then they should be liable under consumer protection law.”
- “A party shall be responsible for the fault of another person…where both were acting in concert…”
- Civil aiding and abetting liability can lie against Global and Rocky for any of four reasons.”
Global Client Solutions and Rocky Mountain Bank & Trust Said to Have Aided and Abetted Debt Settlement Companies to Violate Statute by Steve Rhode
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