HARRISBURG, PA — Attorney General Michelle Henry Sunday announced a settlement exceeding $550,000 with Accelerated Debt Settlement, Inc. and its affiliates after the companies allegedly operated without proper licensing and misled consumers about their services.
Key Points
- Accelerated Debt Settlement will pay $550,000, including $500,000 in direct refunds to consumers.
- Consumers will receive individual checks ranging from $2,850 to $19,998.
- The companies are barred from operating in Pennsylvania until they are properly licensed.
Refunds issued after illegal upfront payments
The agreement follows allegations that Accelerated Debt Settlement, also known as Accelerated Debt Solutions, Accelerated Debt Settlement LLC, and Financial Services Group, LLC, collected illegal upfront payments from consumers while falsely promising to reduce or settle their debts.
The Office of Attorney General stated that the settlement blocks the companies from selling or advertising debt relief services in Pennsylvania unless and until they obtain the necessary licenses.
“Everyone is looking for avenues to minimize or erase debt, and these companies preyed on consumers looking for a lifeline,” Attorney General Sunday said in a statement.
Pattern of violations alleged
Prior to the formal settlement, the Bureau of Consumer Protection’s mediation process had secured over $55,000 in refunds. The new agreement adds $500,000 in restitution, with individual checks already being prepared for distribution.
According to the settlement, the businesses violated several statutes, including Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, the Debt Settlement Services Act, and the Federal Telemarketing Sales Rule. Consumers reported advance fees between $1,200 and $17,500 for services that were allegedly never delivered.
One consumer from Allegheny County said, “[Accelerated Debt Settlement] took complete advantage of me and my situation by misrepresenting themselves. I am very pleased that [the Office of Attorney General] was able to get all of my money back.”
90-day window for additional claims
Consumers who believe they were affected by the company have 90 days to file a complaint with the Office of Attorney General. Claims can be submitted online, by calling 1-800-441-2555, or by emailing scams@attorneygeneral.gov.
The companies are no longer permitted to conduct debt settlement operations in Pennsylvania until they meet all legal licensing requirements.
Pennsylvania’s top prosecutor secures over half a million in refunds for consumers targeted by unlicensed debt firms.
