WASHINGTON, D.C. — A federal court has halted a nationwide debt relief operation accused of defrauding older Americans and veterans out of tens of millions of dollars through deceptive practices, following action by the Federal Trade Commission.
The FTC filed suit against seven companies and three individuals operating under the “Accelerated Debt” brand, alleging they falsely claimed to drastically reduce consumer debt while impersonating banks, credit bureaus, and even federal agencies. The scheme reportedly collected more than $100 million through telemarketing and online ads that promised to slash debt by 75% or more.
According to the complaint, consumers were misled into stopping payments on their credit cards, only to find themselves in deeper debt and with damaged credit scores. In one case cited by the FTC, an Army veteran nearly lost his job-related security clearance after following the defendants’ instructions. Another retired, disabled veteran depleted his retirement savings to repay mounting debts, including a nearly $10,000 upfront fee charged by the defendants.
“The defendants falsely posed as consumers’ banks and credit bureaus to mislead them into paying thousands of dollars for their supposed debt relief services,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “What makes this case especially egregious is the defendants’ targeting of older Americans and veterans.”
The FTC alleges the group violated multiple federal laws, including the FTC Act, the Fair Credit Reporting Act, the Telemarketing Sales Rule, the Impersonation Rule, and the Gramm-Leach-Bliley Act. The complaint details a series of unlawful practices, such as collecting advance fees, creating unauthorized checks, obtaining credit reports without permission, and violating Do Not Call rules.
The complaint was filed in the U.S. District Court for the District of Arizona against: Accelerated Debt Settlement, Inc.; ADS Resolve LLC; Financial Solutions Group LLC; Unified Capital Services LLC; Mediawerks; Resolution Specialists LLC; Futura Capital LLC; and individuals Jeffery A. Lakes, Robert Knechtel, and Elizabeth Reaney.
The Commission voted unanimously, 3-0, to file the complaint. The case is being handled by FTC staff attorneys Gregory Ashe and Benjamin Cady.
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