What if the company you turned to for debt relief ended up draining your bank account instead?
That’s what happened to dozens of Pennsylvanians who thought they were finally getting a handle on their finances—only to realize they’d been taken for a ride. But this time, the state wasn’t having it.
Attorney General David Sunday just secured more than $500,000 in refunds for consumers from a group of affiliated companies operating under the name Accelerated Debt Solutions. Their crime? Allegedly charging illegal upfront fees, running an unlicensed operation, and leaving consumers in worse shape than when they started.
“Everyone is looking for avenues to minimize or erase debt, and these companies preyed on consumers looking for a lifeline,” Attorney General 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.” (Source)
Refund checks will be distributed by the Office of Attorney General and will range from $2,850 to $19,998. Prior to this settlement, the businesses issued more than $55,000 in refunds to consumers through the Bureau of Consumer Protection’s mediation efforts.
Let’s break it down—because this case is a textbook example of how debt settlement scams really work behind the scenes.
🕵️♂️ Who’s Behind the Accelerated Debt Solutions Scheme?
Three companies were named in the legal settlement:
- Accelerated Debt Settlement Inc. (Wyoming corp)
- Accelerated Debt Settlement LLC (Indiana LLC)
- Financial Services Group, LLC (Delaware LLC)
All were run out of the same Cheyenne, Wyoming address.
All were affiliated.
All shared ownership and operations.
And all were run by one man: Jeffrey Lakes, who signed the Assurance of Voluntary Compliance (AVC) on behalf of each company. (ADS-Filed-AVC-4-4-25)
🎯 How the Operation Was Structured
According to the 34-page AVC, the companies marketed debt relief services using:
- Telemarketing
- Direct mail
- Internet ads
- Satellite radio spots
And the pitch? Simple and enticing:
We’ll settle your debts for less than you owe—and slash your monthly payments.
But here’s the ugly truth.
💸 1. Consumers Paid Thousands Before Anything Was Done
Clients were required to pay advance fees—ranging from $1,200 to $16,300—before the companies negotiated any settlements.
That’s completely illegal under:
- The Telemarketing Sales Rule (TSR)
- The Pennsylvania Debt Settlement Services Act (DSSA)
💥 Federal law says: You can’t charge someone for debt relief until you actually settle at least one debt. These companies did the opposite.
🧾 2. The Fee Structure Was Intentionally Deceptive
Even when they did settle something, the fees:
- Didn’t match the amount of debt saved
- Didn’t follow a percentage-based system, as required
- Were disproportionate to the actual work done
This means someone could be charged $5,000—and still have no meaningful progress made on their debt.
🧨 3. They Operated Without a License
Under Pennsylvania law, anyone offering debt settlement services must be licensed through the Department of Banking and Securities.
These companies were not.
They operated unlawfully, exposing consumers to risk with no oversight or regulatory accountability.
🕶️ 4. They Used a Fake Name
They ran their marketing under the unregistered name “Accelerated Debt Solutions”—but never registered that name in Pennsylvania, violating the Fictitious Names Act.
That means Pennsylvanians who tried to look them up or file a complaint couldn’t even confirm who they were really dealing with.
📬 How the Victims Were Recruited
According to the settlement:
- Some people were cold-called
- Others responded to flyers and letters
- Some heard radio ads promising fast debt relief
- Others clicked on online ads offering low monthly payments
But once signed up, the pattern was the same:
They paid upfront.
Promises were made.
Deadlines were missed.
Settlements never came.
💡 Inside the Scheme: What It Really Looked Like
- You’re behind on credit card bills.
- You get a call or letter promising to reduce your debt.
- You pay thousands upfront to “get started.”
- Your credit score keeps falling.
- Your creditors keep calling.
- And now, you’ve lost your money—and still owe the debt.
One victim paid over $10,000, only to discover no creditors had been contacted. Another said they never saw a single debt settled, despite shelling out a “setup fee” and several months of payments.
💰 The Legal Settlement: What the Companies Agreed To
To avoid further litigation, the companies entered into a court-enforced Assurance of Voluntary Compliance.
Here’s what they agreed to:
- $500,000 in consumer refunds
- $50,000 for public education and enforcement
- Cease operations in Pennsylvania unless properly licensed
- Comply with all state and federal consumer protection laws
- Stop charging illegal upfront fees
- Hand over consumer contact info so victims can be notified
And while they didn’t admit guilt, they agreed to stop doing everything they were accused of—a pretty telling move.
😤 This Isn’t Just About Money
Situations like this rob people of more than just dollars. They rob people of hope.
They prey on families already stretched thin, selling them a dream of financial freedom… only to trap them deeper in the hole.
If that’s been you—please hear this:
You are not stupid.
You are not alone.
And you are not powerless.
🛑 How to Protect Yourself from Debt Relief Scams
Here’s what to look out for:
✅ Never pay upfront for debt relief. It’s illegal.
✅ Check licensing with your state before enrolling in any plan.
✅ Avoid companies that promise “instant” results.
✅ Beware of pressure tactics like “limited time offers.”
✅ Ask for everything in writing.
✅ Use tools like Credit Karma or get your credit report to monitor your accounts.
🔍 Here’s a guide I wrote to help you vet any debt relief company before you sign:
👉 The Ultimate Consumer Guide to Checking Out a Debt Relief Company
👏 What You Can Do If You Were a Victim
If you worked with any of these companies after May 2022, you may be eligible for a refund.
🕒 You have 90 days from the effective date of the settlement to file a complaint.
Here’s where to start:
👉 File a Consumer Complaint with the Pennsylvania Attorney General
Even if you’re unsure, file anyway. It’s better to be safe than left out.
📚 Need Real Help? Start Here
If this all hits a little too close to home, I want you to know there are trusted paths to getting out of debt.
- Talk to Damon Day, a debt coach I trust and recommend. He’s smart, honest, and doesn’t sell one-size-fits-all plans.
- Get my book How to Get Out of Debt Without Getting Scammed and What to Do if You Have Been — it’s helped thousands spot shady tactics and find better options.
- And don’t overlook bankruptcy. I know it sounds scary, but people who file often do better than those who struggle for years. Here’s the research.
❓ FAQ – People Also Ask
Can a debt settlement company charge upfront fees?
No. Under federal law, they can’t charge you anything until they’ve successfully settled at least one of your debts.
How can I know if a debt relief company is legit?
Check their licensing status with your state, research complaints online, and never trust companies that ask for large fees upfront.
What’s the difference between debt settlement and debt consolidation?
Debt settlement involves negotiating with creditors to reduce your total debt. Debt consolidation rolls all your debt into one payment—but doesn’t reduce the total amount owed.
Am I stuck if I already paid one of these companies?
Not necessarily. You may be eligible for restitution if you act within 90 days. Even if not, talk to a trusted expert who can help you assess your situation and next steps.
🙋 Final Thought
Bad situations like this don’t just hurt your wallet—they crush your spirit.
But you’re not broken. You’re not foolish. You’re just one of millions trying to get ahead in a system that doesn’t make it easy.
And that’s why I’m here. To make sure you know your rights, your options, and that you’re never too far gone to start over.
👉 Subscribe to GetOutOfDebt.org for weekly updates, advice, and no-BS truth bombs to keep you safe and financially free.
References
- Claim: Accelerated Debt Settlement Inc., its affiliated companies, and related entities operated under the unregistered name “Accelerated Debt Solutions.”
Fact: The Assurance of Voluntary Compliance (AVC) confirms these entities shared ownership, operated from the same Wyoming address, and used an unregistered fictitious name in violation of Pennsylvania law.
Source: AVC, p. 1–2 - Claim: Consumers paid upfront fees between $1,200 and $16,300 before any debt was negotiated.
Fact: The AVC documents that these payments were collected illegally, violating the TSR and DSSA, which prohibit collecting fees before settling a debt.
Source: AVC, p. 3–4 - Claim: Many consumers received no meaningful service after making payments.
Fact: The Attorney General’s office received complaints from consumers stating that no settlements occurred and no results were delivered.
Source: AVC, p. 3; AG press release - Claim: The companies advertised aggressively using telemarketing, direct mail, internet ads, and satellite radio.
Fact: These marketing channels were explicitly listed in the AVC as part of the companies’ business practices targeting Pennsylvania residents.
Source: AVC, p. 2 - Claim: The companies were not licensed to operate debt settlement services in Pennsylvania.
Fact: The AVC confirms they were not registered with the PA Department of Banking and Securities, violating state law.
Source: AVC, p. 4 - Claim: The legal settlement includes $500,000 for restitution and $50,000 for consumer education and enforcement.
Fact: These amounts are specified as part of the AVC’s monetary relief terms.
Source: AVC, p. 6 - Claim: Consumers have 90 days from the settlement’s effective date to file a complaint for restitution.
Fact: The AVC outlines a 90-day filing window for new complaints; previously reported consumers are automatically eligible.
Source: AVC, p. 6 - Claim: The companies denied wrongdoing but agreed to cease operations in PA unless properly licensed.
Fact: While denying liability, the companies accepted permanent injunctions and agreed to abide by state and federal laws.
Source: AVC, p. 5–6 - Claim: “💡 Inside the Scam: What It Really Looked Like” — Describes a typical consumer experience, including being contacted by marketers, paying upfront fees, receiving no relief, and falling further behind.
Fact: All elements are supported by consumer complaints and legal findings in the AVC. These include aggressive marketing, illegal advance fees, no settlements delivered, and continued creditor contact.
Source: AVC, p. 2–4; supported by FTC and CFPB enforcement guidance - Claim: “But once signed up, the pattern was the same: They paid upfront. Promises were made. Deadlines were missed. Settlements never came. And the company was nowhere to be found.”
Fact: This narrative is factually consistent with the AVC. It summarizes reported consumer experiences: large advance payments, unfulfilled promises, and companies failing to deliver or communicate.
Source: AVC, p. 3–4
