On March 20, 2013 the State of WV was granted a judgment against James Armstrong, Family Credit Counseling, Debt Solutions Foundation, Top Financial Sales & Marketing, Consumer Financial Marketing, Consumer Debt Management & Education, JRA Property & Land Management, Vegga Corporation, and American Debt Counseling.
Court records indicate Family Credit Counseling Corporation was a federally tax-exempt nonprofit and was in the business of administering debt management plans in various states.
The nonprofit credit counseling agency, FCCC, allegedly was paying for profit marketing companies to establish the DMP and refer it to FCCC for administration.
The State assertion was the fees charged by these front end for profit marketing companies violated the states debt pooling statutes.
What the State of West Virginia found was that 250 West Virginia residents were enrolled in DMPs through FCC. Those consumers were charged upfront fees of $95,737 and monthly service fees of $126,764.
FCCC overcharged residents by $30,348 for the monthly service fee, since West Virginia does all for a fee of up to seven percent of the monthly payment.
The State also says FCCC conducted business in the State without first registering in West Virginia to do business.
You can read the entire judgment, Judgment Order Entered 3-14-13-OCR_new.
Kanawha County Circuit Court Judge James C. Stucky ordered now-defunct credit counseling agency Family Credit Counseling Corporation (FCCC) and North Carolina-based businessman James R. Armstrong to pay a summary judgment of $126,085.22 for collecting excessive fees from West Virginia customers.