Penalty Amount
$1,694,240
The Virginia Attorney General issued a consumer warning about predatory practices by tax debt settlement companies, referencing a past successful enforcement action against Wall & Associates, Inc. and CEO P. Mark Yates for violating the Virginia Consumer Protection Act. The Fauquier County Circuit Court ordered the company and CEO to pay over $1.6 million in civil penalties, with additional restitution to consumers pending determination.
Wall & Associates, Inc. must pay $1,588,350 in civil penalties to the Commonwealth of Virginia, and CEO P. Mark Yates must pay $105,890 in civil penalties, plus attorney’s fees and costs. Wall & Associates, Inc. is also required to pay restitution to qualified consumers nationwide, with the exact restitution amount still to be determined by the Court.
In-house legal teams should review all agreements with tax debt settlement service providers to ensure vendors do not include guarantees of specific settlement results, timelines, or IRS Offer in Compromise eligibility, as such provisions violate the Virginia Consumer Protection Act. Contracts should include representations and warranties requiring compliance with state consumer protection laws, indemnification clauses covering civil penalties or consumer restitution arising from vendor deceptive practices, and termination rights for misleading advertising. These updates apply to vendor and consumer-facing agreements in the financial services sector.
Entity
Wall & Associates, Inc.
Industry
Financial Services"Wall & Associates, Inc., and its principals for violating the Virginia Consumer Protection Act"
"ordered Wall & Associates, Inc. to pay restitution to qualified consumers nationwide and determined it should pay civil penalties to the Commonwealth of $1,588,350"
"determined he should pay $105,890 in civil penalties to the Commonwealth"
"for violating the Virginia Consumer Protection Act for years by misleading and deceiving consumers"
"misleading and deceiving consumers about specific results, timeframes, and eligibility for settlement relief, among other conduct"
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