Recently, federal regulators obtained an emergency injunction to stop a so-called “accelerated debt” company from taking advantage of consumers. On July 17, 2025, the Federal Trade Commission (FTC) filed a complaint against several companies in the United States District Court for the District of Arizona (Federal Trade Commission V. Accelerated Debt Settlement Inc.). The federal consumer protection agency alleges that seven companies and three individuals carried out debt relief scams targeted at senior citizens and other vulnerable people. The companies are accused of violating the Fair Credit Reporting Act (FCRA) and other federal consumer protection laws. Our credit report error lawyer provides a comprehensive overview of the case and the key things that consumers should know about the law. 

Case Review: Federal Trade Commission V. Accelerated Debt Settlement Inc.

Background and Facts

In July of 2025, the FTC filed suit in the United States District Court for the District of Arizona against Accelerated Debt Settlement Inc. and six related corporate entities, along with three individuals: Jeffrey A. Lakes, Robert L. Knechtel, and Elizabeth A. Reaney. Notably, the legal complaint followed an ex parte request by the FTC, which led the court to issue a temporary restraining order (TRO), asset freeze, appointment of a receiver, and expedited discovery to stop the defendants from dissipating assets and continuing the alleged scheme. The firms—which reportedly did collective business as “Accelerated Debt”— marketed debt relief services nationwide. Notably, they focused their “services” on vulnerable populations, including senior citizens. Unfortunately, they left many already financially distressed consumers with even more debt. 

The Allegations 

According to the complaint filed by the plaintiff, the defendants (Accelerated Debt Settlement Inc. and the related entities) engaged in an extensive debt relief scam. They operate as a common enterprise across multiple shell companies with shared ownership, coordination, and overlapping commercial operations. Notably, they marketed services via telemarketing, direct mail, and online ads. In doing so, they falsely claimed they could reduce unsecured debts by up to 75% or even 85%. Unfortunately, financially distressed consumers were misled into believing the callers were their own banks, credit card companies, government agencies, or consumer reporting agencies. They were even sometimes speaking to people from these companies who presented themselves as being associated with Experian or the Social Security Administration (SSA).  

After supposedly enrolling, many victims paid illegal advance fees (often thousands of dollars, sometimes even more than $10,000), yet received little or no debt-relief work. In fact, some consumers wound up more deeply in debt. Several of them saw their credit scores collapse by 100 or even 200 points. Beyond that,  the defendants routinely contacted consumers listed on the National Do Not Call Registry, did not transmit caller ID information, and issued remotely created checks in violation of the Telemarketing Sales Rule (TSR). These are all serious violations. Beyond that, the complaint further alleges violations of the Gramm‑Leach‑Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and other federal consumer protection regulations. 

FCRA Issues

There are FCRA issues at stake in this case. Indeed, the FTC’s complaint specifically includes a count under Section 604(f‑1)(1) of the FCRA. That regulation governs the permissible purposes for accessing consumer reports. The federal agency argues that the defendants unlawfully obtained and used consumer credit reports without any permissible purpose. Indeed, they tried to get these reports for an illegitimate purpose: to impersonate legitimate entities to coax victims into paying fees. The misuse of credit report data formed part of a broader deceptive strategy and violated both the FCRA and the FTC Act’s prohibition on unfair and deceptive practices. 

Consumers were typically deceived by inaccurate or contrived representations drawn from their credit data, including claims that their credit card accounts had been compromised and needed immediate closure. By misrepresenting their identity and using credit report information for illicit intent, the defendants breached FCRA’s strict limits on access and use of consumer credit reports. While the case is still pending, the court found that the FTC is more likely than not to succeed on the merits. As such, a temporary injunction was put in place. 

The FCRA Restricts the Access and Use of Consumer Credit Reports

The information on your credit report is sensitive. The FCRA strictly limits who can access a consumer’s credit report and how they can use that information. Only entities with a “permissible purpose” may legally obtain a consumer report. Indeed, the law prohibits companies from pulling credit reports for marketing, curiosity, or any reason unrelated to a legitimate transaction. All commercial entities that access credit reports must also ensure they use the information accurately and fairly. Unauthorized access, misuse, or deceptive acquisition of credit data violates the FCRA and can trigger significant civil liability and enforcement action. 

The Bottom Line: Consumers have the right to know who accessed their credit report. You should not be subject to having parties review your credit file without a legitimate purpose. 

Other Key Rights You Have Under the Fair Credit Reporting Act

The FCRA is a comprehensive law. It is one of the most important federal statutes that protects consumers. Your credit report matters. It can have a huge impact on your finances, including how much interest you pay, your ability to get a loan, and even your ability to land a job or qualify for an apartment. Here are some of the most notable other rights that you have under the FCRA: 

• The Right to Access Your Own Credit Report: You have the right to request and review your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months for free at AnnualCreditReport.com. The right allows you to monitor your credit history, catch potential fraud, and check for errors. You should be sure to use AnnualCreditReport.com to obtain a copy of your report. Other credit report services generally do not truly offer “free” credit reports. 
• The Right to Dispute Inaccurate Information: If you find incorrect or outdated information in your credit report, you have the right to file a dispute with the credit bureau. The bureau must investigate your dispute. That investigation should typically happen within 30 days after a consumer has flagged the issue. The credit reporting agency should correct and/or remove any inaccurate or unverifiable information. If you have any questions about the process for disputing inaccurate information on a credit report, an experienced FCRA lawyer can help. 
• The Right to Be Notified of Adverse Action Based on a Credit Report: If a lender, employer, landlord, or other entity takes adverse action against you (denial of a loan, denial of a job, etc) based on information in your credit report, they must notify you. The notice must include the name of the credit bureau that supplied the report and explain your right to obtain a free copy and dispute any inaccuracies. 
• The Right to Seek Damages for Violations: If a company, organization, or individual willfully or negligently violates your FCRA rights, you have the right to seek compensation. You may be entitled to actual damages, statutory damages, punitive damages, and attorney’s fees. Our credit report error lawyer can help you take action to get compensation for damages related to an FCRA violation. 

How a FCRA Lawyer Can Help You Navigate a Claim

The FCRA is an important consumer protection law. It is also a complex statute. As a consumer, you may have a lot of questions about your rights and your options under the Fair Credit Reporting Act. You do not have to navigate the claims process alone. Professional legal guidance and support is available. Here are four key ways that an FCRA attorney can help: 

• Investigate Unauthorized Access to Your Credit Report: If someone pulled your credit report without a permissible purpose, a FCRA lawyer can investigate who accessed it and why. Your attorney can request documentation, review access logs, and identify whether the inquiry violated the law. Unauthorized access can happen when a company uses deceptive tactics or when a person accesses your report out of curiosity or personal motives. 
• Challenge Inaccurate or Misleading Information: Errors on your credit report can cause serious damage to your finances. A FCRA lawyer can help you submit detailed disputes to the credit bureaus and the furnishers of the data. If those parties fail to correct the errors after receiving proper notice, your lawyer can file a lawsuit to seek financial damages for the harm caused to your credit and financial reputation.
• Represent You in a FCRA Lawsuit: When your rights under the FCRA are violated, a lawyer can guide you through the legal process and file a civil claim on your behalf. Your attorney can handle everything from drafting the complaint to negotiating with the defendant or representing you in court. FCRA violations can result in compensation for actual damages, statutory damages, and, in cases that involve wilful misconduct, even punitive damages. 
• Protect You From Retaliation or Ongoing Harm: Unfortunately, in some cases,  consumers face retaliation after asserting their FCRA rights. It is illegal. A consumer protection lawyer can help stop continued harm by seeking injunctive relief, notifying regulators, and documenting ongoing misconduct. They may also assist in coordinating related legal issues, such as identity theft or fraud. We are proactive, and we are protected to protect you. 

How Much Compensation Can I Reasonably Expect to Recover for an FCRA Violation?

It depends. The amount of compensation you can recover for a FCRA violation varies based on the type of violation and whether it was willful or negligent. If the violation was negligent (the company failed to take reasonable care,) you may be entitled to actual damages. Among other things, this includes your actual financial losses, emotional distress, and harm to your credit reputation. To be clear, there is no fixed cap on actual damages, but you must prove them with strong supporting evidence. Losses in an FCRA claim should be well-documented. 

Notably, if the violation was willful (done knowingly or recklessly by the defendant), you can still recover for the full extent of your actual damages. Beyond that, you may also be able to recover for statutory damages between $100 and $1,000 per violation. That is true even if you cannot prove specific financial harm. In some cases, courts may also award punitive damages to punish egregious misconduct. 

Key Point: You should not be stuck responsible for costs because your rights were violated. The FCRA allows you to recover attorney’s fees and other legal costs as part of your claim. 

Richard H. Kim is a Top-Tier Consumer Protection Lawyer 

If your rights were violated, you need to be prepared to take action. With a strong foundation in handling violations under the Fair Credit Reporting Act (FCRA), Richard H. Kim is widely recognized as a top‑tier consumer advocate. Based in Philadelphia and admitted to practice in both Pennsylvania and New Jersey, he handles federal FCRA cases nationwide. Attorney Kim fights aggressively to enforce and protect consumer rights in cases that involve false credit reporting and misconduct by information furnishers. With extensive litigation experience in FCRA matters, we know how to deliver results. Our detail-focused legal team will investigate your FCRA case, gather and prepare all supporting documentation, demand timely correction of errors, and take action to help you secure the maximum financial compensation. Our firm also handles other matters, including FDCPA cases. Victims of credit report errors often have other claims as well, including for something like debt collector harassment. 

Contact Our Credit Report Error Attorney Today

At The Kim Law Firm, LLC, our FCRA lawyer is a skilled, knowledgeable advocate for consumers. If your rights were violated under the FCRA, the FDCPA, or a related law, we are here to help. Our firm puts a strong emphasis on doing right by clients. Call us today or contact us online for a completely confidential, no obligation initial consultation. We handle FCRA cases nationwide.