Debt settlement companies required consumers to pay an up- front fee to join a debt assistance program that would eliminate the debt for a fraction of the amount owed. Many offered to refund the fee if the customer did not save a specified amount of money. Some groups claiming to be non- profit organizations offered debt counseling services targeting consumers with poor credit histories to help them obtain loans and credit cards or settle debts. The groups pressured the consumers to pay an entitlement fee within a short period of time or risk being placed on a non-existent waiting.
