Tuesday, July 10, 2012
AG Forces Payback On Debt Resolution Scheme
Legal Helpers Debt Resolution LLC will have to pay back provide $2.1 million to Illinois residents who paid for debt settlement services but failed to receive meaningful debt reduction. Also under the settlement, entered in Sangamon County Circuit Court, the company agreed not to accept any new Illinois customers.
“This company was fronting as a law firm claiming to help consumers reduce their debt, but in reality, their scheme had nothing to do with the practice of law. The company’s primary purpose was to squeeze thousands of dollars in illegal upfront fees from struggling families for supposed debt relief that never materialized,” Madigan said.
Madigan filed a lawsuit against the national legal firm in March, 2011. The Department of Financial and Professional Regulation joined the lawsuit a few months later after the company failed to respond to the department’s cease-and-desist order for not obtaining the proper licensing.
Legal Helpers Debt Resolution LLC managing members, attorneys Thomas Macey and Jeffrey Aleman still face ARDC disciplinary action alleging misconduct in connection with their debt settlement business.
Consumers who believe they are owed a refund under the settlement should contact the Attorney General's Consumer Fraud Bureau at 1-800-243-0618.
In the pic: A "Call to Action" on Legal Helpers' website.