Meracord LLC, Linda Remsberg
Enforcement, Debt Relief
In October 2013, the CFPB sued Meracord, a payment processing company, for helping “debt-relief firms impose illegal upfront fees.” Federal law prohibits debt-relief firms from receiving payments before settling any debts, however the CFPB found that Meracord allegedly “processed at least $11 million in unlawful fees” from “more than 11,000 consumers across the country” who were “charged upfront fees.” Meracord was fined $1.3 million and the CFPB would reimburse eligible consumers.
“In building cases against those companies, the bureau discovered that Meracord had processed at least $11 million in unlawful fees from October 2010 to July 2013. More than 11,000 consumers across the country were charged upfront fees, and nearly 5,000 of them had none of their debts settled. The bureau [planned] to reimburse those consumers using money from its civil penalty fund.”
Meracord was fined $1.3 million. “In addition to the fine, Meracord and its chief executive, Linda Remsberg, are banned for life from processing payments of any kind for providers of debt or mortgage relief.” [Danielle Douglas, “Consumer agency fines payment processor Meracord over debt-relief firms’ illegal fees,” The Washington Post, 10/03/13]
Inactive or Resolved