Attorney General Sunday has announced a settlement with Accelerated Debt Settlement, Inc. and its affiliates. The settlement involves the businesses misleading consumers in Pennsylvania about their ability to reduce or settle debts and charging illegal upfront payments. As part of the agreement, Accelerated Debt Settlement will pay $550,000, of which $500,000 will be distributed to affected consumers.
Accelerated Debt Settlement and its affiliates are barred from advertising and offering their services in Pennsylvania until they obtain the necessary licenses. Attorney General Sunday stated, “Everyone is looking for avenues to minimize or erase debt, and these companies preyed on consumers looking for a lifeline. This settlement puts a stop to Accelerated Debt Settlement operating in Pennsylvania without a license and brings much needed monetary relief to consumers.”
Checks ranging from $2,850 to $19,998 will be sent out by the Office of Attorney General. Additionally, more than $55,000 in refunds had already been distributed to consumers through mediation efforts by the Bureau of Consumer Protection before the settlement was reached.
Consumers who may have been affected by the business practices of Accelerated Debt Settlement, Inc. have a 90-day window to file complaints with the Office of Attorney General if they seek refunds. Complaints can be submitted online, by phone, or by email.
Besides Accelerated Debt Settlement, Inc., the business also operates under other names such as Accelerated Debt Solutions, Accelerated Debt Settlement LLC, and Financial Services Group, LLC. An Allegheny County consumer expressed satisfaction with the Office of Attorney General's efforts, saying, “[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.”
The businesses are accused of failing to fulfill promised services and receiving illegal advance payments ranging from $1,200 to $17,500. This conduct allegedly breaches Pennsylvania's Unfair Trade Practices and Consumer Protection Law, the Debt Settlement Services Act, and the Federal Telemarketing Sales Rule.
The settlement awaits approval from the Allegheny County Court of Common Pleas and was submitted for filing by Senior Deputy Attorney General Amy L. Schulman.