The same day new credit card rules  protecting consumers went into effect, John Suthers, Colorado's attorney general, announced a lawsuit against a Denver-based credit repair agency, alleging illegal practices. The suit claims Veracity Credit Consultants charged customers an upfront fee of $99 and monthly fees as high as $79, practices that are illegal under Colorado law, according to the Denver Business Journal . State law permits credit repair agencies to charge fees only upon completion of their services. Company representatives tell The Denver Post  they are "surprised" by the suit and are in compliance with the law. The lawsuit, filed in U.S. District Court in Denver, alleges that since 2003, Veracity has advertised and offered online "credit optimization services" in Colorado and throughout the United States that will "fix credit" and correct errors to improve a consumer's credit score. Investigators say contrary to Veracity's claims of "results," the company provides consumers with a "client services agreement" that specifies the company can't achieve what is claimed in promotional materials on company Web sites. "Consumers trying to work their way out of debt and improve their credit should carefully examine the promises any credit-repair company makes," Suthers says in a news release . "Consumers also should beware of any company that charges upfront fees for any credit-repair services."