Skip to main content

SettleIt, Inc.

On April 13, 2021, the Bureau filed a proposed stipulated final judgment and order in the United States District Court for the Central District of California to resolve allegations that SettleIt, Inc., a California-based debt-settlement company, violated the Telemarketing Sales Rule and engaged in abusive acts and practices under the Consumer Financial Protection Act. In its complaint, the Bureau alleged that SettleIt failed to disclose to consumers its relationship to certain creditors and then regularly prioritized those creditors in settlements; claimed that its programs could be completed without borrowing more money, while steering consumers into high-cost loans to pay off third-party creditors; failed to clearly and conspicuously disclose the costs of its services; and required consumers to pre-authorize settlements so that SettleIt could settle consumers’ debts without their express consent. The order, which the court entered on July 2, 2021, requires SettleIt to return at least $646,769.43 in performance fees to consumers and to pay a $750,000 civil money penalty.

Related documents


Stipulated final judgment and order

Press release

CFPB Takes Action Against SettleIt, Inc. for Steering Consumers into High-Cost Loans