HOUSTON -- Texas Attorney General Greg Abbott Wednesday announced legal action against four debt settlement companies -- alleging they unlawfully misrepresented and overstated the nature of their services.

BC Credit Solution, L.H. Financial Service, both based in Dallas, DebtORSolution, of Louisville, Ky., and Four Peaks Financial Services, of Scottsdale, Ariz., are accused of misrepresenting their services, misrepresenting the effects of bankruptcy, misleading credit repair claims and making impossible guarantees for a specific settlement or time frame.

Abbott said the defendants' Web sites promised they could eliminate customers' unsecured debts, such as credit card accounts, in as little as three years.

"At a time of economic hardship, these defendants are charged with orchestrating unlawful debt reduction schemes," Abbott said. "Texas law provides important protections that prevent debt settlement firms from misleading customers about their services. Today's enforcement action cites four defendants for materially misrepresenting the nature of their services -- and misleading customers about the protections they are guaranteed by Texas law."

The attorney general is seeking restitution for customers, civil penalties of up to $20,000 per violation and attorney's fees.

Texans who believe they have been victimized by a debt-settlement company's conduct and wish to file a complaint should call 800-252-8011 or visit www.oag.state.tx.us.