Debt Relief Industry

Marc Penso, David Henson, and CDS Client Services Move Class Action to Federal Court

On August 19, 2011, Marc Penso, David Henson, and CDS Client Services, who were previously named in a class action suit filed in Washington State, moved the case to Federal Court.

On June 23, 2010, Plaintiff JANIS F. CALLOW (“Plaintiff’) commenced this class action lawsuit individually and on behalf of a class of similarly situated Washington residents against Removing Defendants and iVISTA ENTERPRISE, INC. d/b/a ZERODEBT USA (“ZeroDebt”), LENNY SPANGLER (“Spangler”) and KELLI RUNDLE (“Rundle”) the Superior Court, State of Washington, King County, with the above caption and case number 11-2-21818-0 KNT. The one-count Complaint alleges a claim against Defendants for violations of Washington’s Consumer Protection Act (Compl. ¶~J 5.1 — 5.7). Plaintiff seeks injunctive relief (Compl. ¶~J 5.8—5.14), class certification of a class composed of Washington residents for whom CDS has performed debt adjustment services (Compl. ¶ 5.15), actual damages, an award of exemplary damages in the form of treble damages, prejudgment interest, costs and attorneys’ fees pursuant to RCW 19.86 (Compi. ¶ Demand for Relief). – Source

This case was originally filed by The Scott Law Group against CDS CLIENT SERVICES, INC. a/k/a CDS DEBT RESOLUTION a/k/a CAPITAL DEBT SETTLEMENT, a California corporation; MARC PENSO, individually; DAVID HENSON, individually; iVISTA ENTERPRISE, INC. a/k/a ! VISTA ENTERPRISES, INC., a California Corporation, doing business under the fictitious name ZERODEBT USA; LENNY B. SPANGLER, individually; KELLI RUNDLE.

The claim in the original filing was that Defendants are engaged in a uniform conspiratorial and criminal business scheme. The objective of Defendants’ scheme is to enrich themselves at the expense of financially strapped Washington families by charging criminally illegal fees for purported debt adjusting services.

Defendants attempt to effectuate this unlawful scheme through a fiction that their debt adjusting program is actually being performed by lawyers in a law firm, thus taking advantage of a perceived “attorney” exception to statutes designed to protect consumers from – unlawful debt adjusting practices.Source

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


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