WASHINGTON (Legal Newsline) — District of Columbia Attorney General Karl A. Racine announced Aug. 8 that the Office of the Attorney General (OAG) Office of Consumer Protection has reached a settlement agreement with YF Solution LLC, a Florida debt relief company, and its owner, Grace de Paz.
YF Solution allegedly advertised debt relief services to consumers but failed to actually deliver on what was promised in its marketing materials. According to Racine’s office, the company advertised online that it would negotiate with consumers’ creditors to reduce their credit card and other debts.
In its marketing materials, YF Solution said it could eliminate as much as $5,000 to $10,000 of its customers’ debts. The company allegedly charged a $2,995 fee upfront and then would take little to no action to actually help consumers. Charging advance fees for debt relief services is illegal under both district and federal law.
“YF Solution took advantage of district residents, sometimes charging consumers who were already deep in debt thousands of dollars for services that YF didn’t deliver,” Racine said. “We will not tolerate predatory businesses practices that make it harder for vulnerable residents to get ahead. We are very pleased that we were able to resolve this matter before more people were harmed.”