Debt settlement company to repay $500K to Pennsylvanians allegedly misled

HARRISBURG, Pa. (WHTM) — A debt settlement company will pay back $500,000 to people the Pennsylvania Attorney General’s Office says were misled.

Attorney General Dave Sunday announced Friday a settlement with Accelerated Debt Settlement, Inc.. The company was accused of “misleading consumers into thinking they could shrink or settle debts and for demanding illegal, upfront payments.”

They were also accused of failing to provide services as advertised and taking unlawful advance payments ranging from $1,200 to $17,500.

“Everyone is looking for avenues to minimize or erase debt, and these companies preyed on consumers looking for a lifeline,” Sunday said. “This settlement puts a stop to Accelerated Debt Settlement operating in Pennsylvania without a license and brings much needed monetary relief to consumers.”

The company and its affiliates are prohibited from operating and advertising in the state without the proper license, and they will pay $550,000, the lion’s share of which will go to consumers.

Refund checks will be distributed by the Office of Attorney General and range from $2,850 to $19,998.

An Allegheny County consumer who filed a complaint with the Bureau of Consumer Protection told the Office that “[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 settlement is pending acceptance in Allegheny County Court.