Latest news with #FederalTelemarketingSalesRule
CBS News
07-04-2025
- Business
- CBS News
AG Dave Sunday announces settlement with debt settlement businesses that were allegedly illegally operated
Attorney General Dave Sunday has announced a settlement with Accelerated Debt Settlement, Inc. and its affiliates after the businesses claimed they could shrink or settle consumer debts while demanding illegal, upfront payments. Accelerated Debt Settlement has agreed to pay $550,000, with $500,000 going to affected consumers. Accelerated Debt Settlement and its affiliates are also prohibited from advertising and selling services in Pennsylvania until proper licenses are obtained, per a press release from the attorney general's office. "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." Refund checks will be distributed by the Office of Attorney General, ranging from $2,850 to $19,998. The businesses allegedly failed to provide their services as advertised and accepted unlawful advance payments ranging from $1,200 to $17,500, the press release added. The settlement alleges that the businesses engaged in a "pattern of misconduct" that violated Pennsylvania's Unfair Trade Practices and Consumer Protection Law, the Debt Settlement Services Act, and the Federal Telemarketing Sales Rule. Consumers who may have been impacted by Accelerated Debt Settlement, Inc., have 90 days to file a complaint with the Office of Attorney General to be eligible for a refund. Consumers may file a complaint online , by phone at 1-800-441-2555, or by email at this address .
Associated Press
16-02-2025
- Business
- Associated Press
DEAN TUCCI FILES OPPOSITION MOTION AGAINST CFPB
PALATINE, Ill., Feb. 15, 2025 /PRNewswire/ -- In November of 2020, the CFPB filed a lawsuit against FDATR, Inc., Ken Halverson, and Dean Tucci for allegations that the Federal Telemarketing Sales Rule, 16 C.F.R. Part 310 ('TSR') had been violated. Dean Tucci started and owned FDATR, Inc. from Dec 2014 through July of 2017 – which was a full-service tax prep, accounting and doc prep firm -- and then sold the company to his business partner, Ken Halverson, in July of 2017. Halverson operated FDATR, Inc. from that time to his sudden death in November of 2020, 2 days after the case was filed. The CFPB then put together a Motion for Summary Judgement against Tucci personally – because 'he was the last man standing' -- with a fine of over $43 million making the claim that every client of FDATR was defrauded – because the company took advance fees as most tax prep and accounting firms do -- and therefore, the CFPB was entitled to millions in fines. However, since the case was filed the CFPB has not produced even one client of FDATR, Inc, which was allegedly defrauded. Tucci has now filed his own Opposition Motion Against the CFPB and has alleged the following: CFPB lacks understanding of why the Federal Telemarketing Sales Rule went into effect in 2010 and that the law was for companies that were taking advance fees to settle credit card debt and handling of client monies. CFPB refuses to acknowledge that a Student Loan Doc Prep company that works with the Department of Education is not settling credit card debt nor are they handling any client monies. CFPB and their overreaching attempts built their case against FDATR Inc. and Tucci on their opinion of the Federal Telemarketing Sales Rule law and not on what is actually written in the law. CFPB states on their own website 'We're the Consumer Financial Protection Bureau, a U.S. government agency dedicated to making sure you are treated fairly by banks, lenders, and other financial institutions.' FDATR Inc and Dean Tucci were none of those entities and thus the CFPB has no jurisdiction over the defendants. CFPB has abused its powers by filing a large number of lawsuits against multiple Student Loan Consolidation doc prep companies and private lenders that assisted students out of default. They strong armed these companies to settle quickly for large fines and fees. Their actions made it difficult for students to get their federal student loans out of default. CFPB is funded by the Federal Reserve. The Federal Reserve funds the Dept of Education. These entities have profited over $1 trillion dollars on the balance sheet in the last 7 years when students stay in default. Student loans are not dischargeable in bankruptcy and even when payments are not made interest accrues. Tucci has requested the Court dismiss the CFPB's Motion for Summary Judgement through his Opposition Motion. Tucci also requested this case be dismissed with prejudice and the court awards him his reasonable attorney's fees of over $100,000 and other compensatory damages, as well as an award of punitive damages in an amount to be determined by the court to be paid by Plaintiff.
Associated Press
04-02-2025
- Business
- Associated Press
DEAN TUCCI FILES MOTION FOR SUMMARY JUDGMENT AGAINST CFPB. SEEKS $100,000 IN LEGAL FEES AND PUNITIVE DAMAGES FOR ALLEGING THE CASE WAS DRAMATICALLY OVERREACHING
PALATINE, Ill., Feb. 4, 2025 /PRNewswire/ -- Dean Tucci started and owned a company called FDATR, Inc. – which was an acronym for 'Federal Debt and Tax Relief' - a full-service tax prep and accounting firm that also handled doc prep federal student loan consolidation. From 2014-2019, FDATR employed over 100 people including tax attorneys, CPAs, IRS Enrolled Agents, and a customer service staff. FDATR provided document preparation, along with submission and tracking services for customers with tax (IRS) and student loan (Department of Education) issues. FDATR would help customers to resolve these matters. In November of 2020, the CFPB filed a suit against FDATR, Inc., Ken Halverson, and Dean Tucci for allegations that the TSR Debt Settlement Rule had been violated and made claim that the company was operating as a 'telemarketing company debt settlement firm'. The CFPB stated that FDATR was violating the advance fee ban provision in the 'Federal Telemarketing Sales Rule,' 16 C.F.R. Part 310 ('TSR'). In July of 2017 Tucci sold the firm to his business partner, Ken Halverson. Halverson operated FDATR, Inc. from that time to his sudden death in November of 2020. Because they had no ability to collect against Halverson, they went after Tucci 'as the last man standing,' The CFPB then put together a Motion for Summary Judgement against Tucci personally with a ridiculous fine of over $40 million against Tucci making the outrageous allegation that every client of FDATR was defrauded and therefore, CFPB was entitled to the millions in fines because FDATR took advance fees – as is a common practice for most tax prep and accounting firms -- and then claimed, 'If you take advance fees, you are committing fraud', however, in the 6 years since this case started, the CFPB has not produced even one customer that was allegedly defrauded, nor even one customer complaint. Plaintiff then made sure that the case was publicized online, in an attempt to strong arm Tucci to settle. Per Tucci's Motion For Summary Judgement, 'These witch-hunt extortive actions and CFPB's reckless pursuit against me over the last 6 years have damaged me personally and financially and will continue to do so for my entire lifetime (the internet lives forever).' Tucci has requested the Court to enter Summary Judgment in his favor and against CFPB on all counts of the Complaint. Tucci also requested this case be dismissed with prejudice and the court awards him his reasonable attorney's fees of over $100,000 and other compensatory damages, as well as an award of punitive damages in an amount to be determined by the court to be paid by Plaintiff.
