In August 2014, the CFPB alleged that “Global Client Solutions” had “processed ‘tens of millions of dollars’ in illegal upfront fees for ‘tens of thousands’ of consumers.” The company settled and agree to pay $7 million in “relief and penalties.”

• Case number 2:14-CV-6643 filed in U.S. District Court for the Central District of California, included the two owners, Robert Merrick and Michael Hendrix, as defendants. “Many of Global Client’s customers were based” in this district. “Global Client Solutions collected ‘millions of dollars’ in upfront fees from consumers for hundreds of debt settlement companies nationwide,” the order stated. [Rachel Witkowski, “CFPB Hits Payment Processor Over Illegal Debt-Collection Fees,” American Banker, 08/26/14]

• “The Oklahoma company and its two owners” were ordered to pay a total of $7 million as a result of the lawsuit, specifically “$6 million in relief to affected consumers and a $1 million civil penalty to settle the claims.” The settled also prohibited Global Client Solutions from “collecting upfront fees” and required “the company to submit periodical compliance reports to the CFPB.” [Rachel Witkowski, “CFPB Hits Payment Processor Over Illegal Debt-Collection Fees,” American Banker, 08/26/14]

• Since October 2010, “Global Client Solutions processed ‘tens of millions of dollars’ in illegal upfront fees for ‘tens of thousands’ of consumers — largely in California — on behalf of roughly 800 debt-relief settlement companies.” According to the order, “after consumers enrolled in a debt-relief program, they were directed to stop making payments to the debt and instead give monthly payments to Global Client to act as a deposit in a ‘custodial account’ which included the upfront fees.” [Rachel Witkowski, “CFPB Hits Payment Processor Over Illegal Debt-Collection Fees,” American Banker, 08/26/14]