Consumer Bureau Action Tracker

CFPB v. American Debt Settlement Solutions, Inc., and Michael DiPanni


State

Florida

target

American Debt Settlement Solutions, Inc., and Michael DiPanni

Topics

Debt Relief, Enforcement

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 brought charges against American Debt Settlement Solutions (ADSS) and its owner Michael DiPanni “for allegedly misleading consumers and charging illegal fees for services.” The CFPB alleged that they “routinely charged consumers illegal upfront fees for debt-relief services that rarely materialized.” The debt-relief service provider allegedly “charged about $500,000 in fees to hundreds of consumers in multiple states.” [“Complaints says American Debt Settlement Solutions misled consumers,” South Florida Business Journal, 05/31/13]
  • The CFPB alleged that 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.'”

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]

Status

Inactive or Resolved


9:13-cv-80548-DMM 5/30/2013 12/11/2014

CFPB Takes Action to Stop Florida Company From Engaging in Illegal Debt-Relief Practices
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/american-debt-settlement-solutions-inc-michael-depanni/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court South District of Florida
  • Nonbank
  • $515,000
  • hundreds

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