The state Department of Banking has ordered a debt settlement payment processor to repay more than $722,000 in fees collected from residents while allegedly operating without required licenses.
Banking Commissioner Jorge L. Perez issued an order to make restitution against Set Forth LLC, doing business as Forth, on Jan. 13.
The Illinois-based company also faces potential civil penalties of up to $100,000 per violation for allegedly operating as an unlicensed money transmitter and debt adjuster since at least January 2022.
The enforcement action alleges Forth processed payments for thousands of Connecticut consumers enrolled in debt settlement programs while lacking proper state licenses. The company currently holds more than $2.1 million in custodial accounts for the benefit of 3,616 Connecticut consumers, according to the order.
Further, the banking department alleges Forth misrepresented its compliance with federal telemarketing rules and engaged in unfair or deceptive practices. The order claims the company operated an alleged kickback scheme by offering free or substantially discounted customer relationship management software to debt settlement companies in exchange for exclusive consumer referrals.
The company previously faced enforcement actions in Pennsylvania and Oregon for unlicensed money transmission.
The Connecticut order requires Forth to repay all fees collected from state consumers since March 1, 2016, plus interest. The company has 14 days from receipt of the order to request a hearing, which is tentatively scheduled for March 18.
If Forth does not request a hearing or fails to appear, the allegations will be deemed admitted and the restitution order will become permanent. The commissioner may also issue a cease and desist order.
Forth did not immediately respond to a request for comment on Friday.
