WASHINGTON, D.C. – Attorney General Karl A. Racine announced today that the Office of the Attorney General (OAG) Office of Consumer Protection has reached a settlement agreement with YF Solution, LLC, a Florida-based debt-relief company, and its owner, Grace de Paz. The settlement will provide refunds to District consumers who paid YF Solution for debt-relief services but did not receive the results promised in the company’s marketing materials.

“YF Solution took advantage of District residents, sometimes charging consumers who were already deep in debt thousands of dollars for services that YF didn’t deliver,” said Attorney General Racine. “We will not tolerate predatory businesses practices that make it harder for vulnerable residents to get ahead. We are very pleased that we were able to resolve this matter before more people were harmed.”

YF Solution advertised on the Internet that it would negotiate with consumers’ creditors to reduce their credit card and other debts. In its contracts, the company guaranteed consumers it would eliminate as much as $5,000 to $10,000 of their debts. The company also promised it would not charge for its services unless it reduced consumers’ debt. However, after consumers hired YF Solution, the company immediately charged them fees as high as $2,995 while taking little or no action to reduce their debts. Charging consumers advance fees for debt-relief services is illegal under District and federal law. YF Solution also told consumers that their debts had been transferred to new accounts with lower interest rates when, in fact, the company had not even made contact with the consumers’ creditors in some cases.

This settlement resolves allegations that YF Solution violated the District’s consumer protection laws, particularly by promising to significantly reduce consumers’ debts, unlawfully charging fees in advance for debt relief services, and failing to deliver promised results. The company and its owner will reimburse six District consumers for all payments they made to the company, which will likely total more than $12,000, pay $10,000 in costs and civil penalties to the District, and stop offering debt-relief services in the District.

A copy of the settlement is attached.

Consumers who have been victimized by companies that promise relief from debt, including YF Solution, may contact the OAG Office of Consumer Protection at (202) 442-9892, by e-mailing consumer.protection@dc.gov, or by filing a complaint via our web form.