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Class Action Lawsuit Filed Against Legal Helpers, a Debt Resolution Company
On March 2, 2011, Illinois Attorney General Lisa Madigan announced a suit
against Legal Helpers Debt Resolution, LLC (hereinafter LHDR), also
known as the law firm of Macey, Aleman, Hyslip, & Searns, for
violations of the Illinois Consumer Fraud and Deceptive Business
Practices Act and the Illinois Debt Settlement Consumer Protection Act.
The lawsuit alleges that LHDR signs retainer agreements with consumers
who believe they're hiring a law firm to provide debt relief services on
their behalf. According to Madigan, LHDR actually contracts out
virtually all debt relief services to a third party operated and staffed
by non-lawyers. Madigan also purports that LHDR charges advance fees
which are unfair and in violation of the advance fee ban in the Debt
Settlement Consumer Protection Act. According to the lawsuit,
participation in LHDR's program does not produce the positive results
that consumers expect at the time they enroll, and many consumers allege
their financial situation has gotten worse after enrolling with LHDR.
In addition, Madigan alleges LHDR failed to provide an individualized
written financial analysis stating the debt settlement program is
suitable for the consumer at the time the contract is signed, failed to
clearly and conspicuously make all of the required pre-sale consumer
disclosures and warnings, failed to provide consumers with a written
contract with required disclosures, charged and received fees other than
permitted, failed to provide a monthly accounting to consumers, failed
to provide cancellation and refunds as required, and engaged in other
prohibited practices.
Madigan asks the Court to preliminarily and permanently enjoin LHDR from
engaging in the deceptive and unfair practices alleged in the lawsuit,
and that LHDR be enjoined from engaging in the business of advertising,
offering for sale, and selling debt resolution services. Furthermore,
Madigan requests the Court to find that all contracts entered into
between LHDR and Illinois consumers by the use of methods and practices
unlawfully are rescinded. Additionally, Madigan asks for restitution to
consumers and civil penalties, as well as investigative costs paid to
the State of Illinois.
The BBB (Better Business Bureau) gives Legal Helpers Debt Resolution, LLC a rating of "F" based upon the length of time the company has been in operation, the government actions against the company and the more than 50 complaints the BBB has received regarding the company.
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