Minnesota Attorney General Keith Ellison has announced a settlement with two debt settlement companies, Financial Solutions Group and Accelerated Debt Settlement. These companies were found to have collected illegal fees from consumers and misrepresented their services. As part of the settlement, they will cease operations in Minnesota and provide full refunds to affected customers.
The companies allegedly charged upfront fees before delivering promised services, which is prohibited under Minnesota law governing debt settlement services. They also failed to register as required by state regulations. The settlement was filed in Ramsey County District Court and mandates that the companies pay $1,081,756.59 to the state. This amount represents the total collected from Minnesota customers and will be used for consumer restitution.
Attorney General Ellison stated, "If done with integrity, helping people get out of debt is a noble pursuit," emphasizing his commitment to protecting Minnesotans from fraudulent practices. Since taking office, Ellison has returned over $2.8 million to victims of such schemes.
Ellison's office advises consumers struggling with debt to seek help from reputable credit counseling organizations like Lutheran Social Services Financial Counseling Service and the National Foundation for Credit Counseling, both offering nonprofit assistance without charging fees.
Consumers who believe they have been victimized by a debt settlement company are encouraged to file complaints with the Minnesota Attorney General’s Office through an online form or by phone.
For more information on avoiding debt settlement scams, borrowers can visit the Attorney General’s website.