A debt negotiation operation, along with its president and affiliated entities, has been sanctioned by the Connecticut Department of Banking, which will see the operation repay consumers nearly $800,000 while also being barred from operating in the state. The action arises from a Consent Order involving Accelerated Debt Settlement Inc. (ADS), Financial Solutions Group LLC (FSG), and their president, Jeffrey A. Lakes.
The background: The case stems from a December 2024 investigation that uncovered a series of violations by ADS and FSG, which offered debt negotiation services to Connecticut residents without the required state license. The companies also engaged in several deceptive practices, including charging excessive fees before services were rendered and failing to provide consumers with the legally mandated “three-day right to cancel” notice, according to the consent order.
- Further, the investigation revealed that ADS and FSG had misrepresented their services to consumers and failed to maintain adequate policies for compliance with state regulations. The violations also extended to FSG, whose operations, under Lakes’ leadership, were found lacking in proper oversight and regulatory adherence.
The ruling: The firm, its president, and associated entities have agreed to pay restitution totaling $779,910 to affected consumers. Refunds will be issued in seven installments, with the first payment due by the end of April 2025. These payments aim to address the fees collected improperly from Connecticut residents for services that were either not rendered or charged unlawfully.
- Additionally, ADS, FSG, and Lakes are subjected to a $500,000 civil penalty, which will be stayed for five years contingent upon their compliance with the terms outlined in the Consent Order. If the companies fail to meet these conditions, the penalty will become payable in full.
- The companies are also barred from engaging in debt negotiation activities in Connecticut.
