State
Florida
Florida
American Debt Settlement Solutions, Inc., and Michael DiPanni
Enforcement, Debt Relief
In June 2013, the CFPB sued American Debt Settlement Solutions (ADSS), a debt-relief service provider, for allegedly collecting illegal advance fees from customers for settlement services. The CFPB said ADSS “engaged in abusive acts or practices by ‘signing up and charging fees to vulnerable consumers who the defendants knew had inadequate incomes to complete the debt-relief programs in which they were enrolled.'” ADSS reportedly “charged about $500,000 in fees to hundred of consumers in multiple states.” In June 2013, the CFPB ordered ADSS to “pay nearly $500,000 in damages and a civil penalty of $15,000.”
The CFPB reached a settlement with American Debt Settlement Solutions requiring them to “pay nearly $500,000 in damages and a civil penalty of $15,000.” In addition, it closed down its operations. [Jaclyn Jaeger, “CFPB Takes First Action Actions ‘Abusive Practices’,” Compliance Week, June 2013]
Inactive or Resolved