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Home > Reader Questions > Is Legal Helpers Debt Resolution My Promised Way Out of Debt? – BJ

Is Legal Helpers Debt Resolution My Promised Way Out of Debt? – BJ

I was referred by a “friend” to Legal Helpers Debt Resolution (LHDR). I had an employee who stole a large amount from me using my charge cards. A forensic accountant meet with her, obtained a hand written, signed confession from her. She made arrangements to make payments to me, which were not enough to cover the monthly amount, but prosecution wouldn’t have provided any relief (as per the forensic accountant). My income was greatly diminished due to the economy and I was certain I could no longer make the minimum payments which were not moving me forward toward being debt free.

LHDR seemed a viable alternative, considering the credit card companies were unwilling to make any arrangements to help.

I was promised many things, including a minimum reduction of my debt to 1/4 it’s current amount. There was a required recorded conversation, which I participated in, but it ran out before a required statement was to be read to me (this was shared with me by the agent for LHDR who paniced when he didn’t get the statement in). He mentioned to me they apparantly didn’t listen to the whole tape, and processed it without the “statement”. Would that be a way out of the contract?

I can not file bankruptcy or have lawsuits because having my name drug through court, or in the paper would end my business relationships with clients.

Any suggestions?

BJ

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    Have you filed a missing letter report for your lowercase letters yet?

  • Tonesal5

    YEA RIGHT STEVE YOU MAKE UP MORE THAN 75% OF YOUR ARTICLES.. THE OTHER 25% IS ARTICLES THAT ARE TALKING ABOUT COMPANYS YOU PROMOTE AND GET PAID TO PROMOTE

  • Tonesal5

    YEA RIGHT STEVE YOU MAKE UP MORE THAN 75% OF YOUR ARTICLES.. THE OTHER 25% IS ARTICLES THAT ARE TALKING ABOUT COMPANYS YOU PROMOTE AND GET PAID TO PROMOTE

    • http://GetOutOfDebt.org Steve Rhode

      Have you filed a missing letter report for your lowercase letters yet?

  • Steve Rhode

    Not true. The questions come as is straight from readers.

  • Tonesal5

    The story doesnt make sense because steve writes these up

  • Tonesal5

     The story doesnt make sense because steve writes these up

    • http://GetOutOfDebt.org Steve Rhode

      Not true. The questions come as is straight from readers.

  • Steve Rhode

    Legal Helpers Debt Resolution has just been sued by the Attorney General of Illinois. You can read the suit here.

  • http://GetOutOfDebt.org Steve Rhode

    Legal Helpers Debt Resolution has just been sued by the Attorney General of Illinois. You can read the suit here.

  • Observer

    BJ,

    With a written statement and confession, it may not be so much that you would pursue prosecution of the issue for a return of the funds that were fraudulently charged by the employee, but that by filing a police report and submitting that along with the confession to the creditors they would not hold you responsible for the charges that were part of the fraud. There are obligations for credit issuers in this way regardless of whether or not you purchased their fraud protection.

    You absolutely should look into this.

    Since LHDR is supposed to be supported by attorneys in all 50 states, why was this was not covered with you? Perhaps because LHDR may be just a debt settlement mill for high paid call center affiliates. At least, that is the impression I am starting to get the more I learn about them.

    Like Steve in his comment, I am also skeptical of the 25% settlements (75% savings) you were quoted. If that were proven as a misrepresentation, it is actionable at the state Unfair & Deceptive Acts & Practices (UDAP) level, as well as at a federal level with the FTC.

    There was a guy commenting on another LHDR post on this site whom I believe to be a commissioned affiliate of LHDR eluding to this near 25% claim. With new federal laws now in effect, these type of savings claims must be calculated using defined methodology in order to use them in a sales effort. It is unlikely in the extreme for virtually any company to legitimately claim 75% savings when following the rules for calculating savings claims set forth by the FTC.

    While the lack of a complete recording of the third party verification call you speak of is one way to go about getting a refund, you have other options.

    You could follow Steve’s guide on this site to get a full refund.
    You could locate a consumer advocate attorney in your area and pursue retaining them to get your funds back.
    Depending on how much money you paid already, you could file a small claims action in your local court.
    You could ask your state attorney general to assist you as you now know the program in all likelihood was misrepresented to you.

    What state do you live in?

    If the fraudulent charges were removed, would you be able to meet the new lower minimum payments?

    Continuing to work with LHDR, depending on your creditors, balances and ability to come up with funds fast, may quickly lead to your fear of being sued.

    If you respond to my question of where you live, I may be able to post a comment in return with contact points for an attorney in your area who has experience with the fraudulent charge issue and who may also be able to assist you in any claim against LHDR or their marketing affiliate you dealt with were He/She to see value in pursuing one.

    Oh, one final thought in fairness to LHDR:
    Due to how LHDR holds themselves out as having attorneys in each state, you should immediately request to speak with their attorney representative in your state. Cover your issues openly and honestly. See what feedback you get. Bring up UDAP and false representations if need be. That attorney may actually be able to help you, or may encourage LHDR themselves to get you your money back if they cannot assist.

  • Observer

    BJ,

    With a written statement and confession, it may not be so much that you would pursue prosecution of the issue for a return of the funds that were fraudulently charged by the employee, but that by filing a police report and submitting that along with the confession to the creditors they would not hold you responsible for the charges that were part of the fraud. There are obligations for credit issuers in this way regardless of whether or not you purchased their fraud protection.

    You absolutely should look into this.

    Since LHDR is supposed to be supported by attorneys in all 50 states, why was this was not covered with you? Perhaps because LHDR may be just a debt settlement mill for high paid call center affiliates. At least, that is the impression I am starting to get the more I learn about them.

    Like Steve in his comment, I am also skeptical of the 25% settlements (75% savings) you were quoted. If that were proven as a misrepresentation, it is actionable at the state Unfair & Deceptive Acts & Practices (UDAP) level, as well as at a federal level with the FTC.

    There was a guy commenting on another LHDR post on this site whom I believe to be a commissioned affiliate of LHDR eluding to this near 25% claim. With new federal laws now in effect, these type of savings claims must be calculated using defined methodology in order to use them in a sales effort. It is unlikely in the extreme for virtually any company to legitimately claim 75% savings when following the rules for calculating savings claims set forth by the FTC.

    While the lack of a complete recording of the third party verification call you speak of is one way to go about getting a refund, you have other options.

    You could follow Steve’s guide on this site to get a full refund.
    You could locate a consumer advocate attorney in your area and pursue retaining them to get your funds back.
    Depending on how much money you paid already, you could file a small claims action in your local court.
    You could ask your state attorney general to assist you as you now know the program in all likelihood was misrepresented to you.

    What state do you live in?

    If the fraudulent charges were removed, would you be able to meet the new lower minimum payments?

    Continuing to work with LHDR, depending on your creditors, balances and ability to come up with funds fast, may quickly lead to your fear of being sued.

    If you respond to my question of where you live, I may be able to post a comment in return with contact points for an attorney in your area who has experience with the fraudulent charge issue and who may also be able to assist you in any claim against LHDR or their marketing affiliate you dealt with were He/She to see value in pursuing one.

    Oh, one final thought in fairness to LHDR:
    Due to how LHDR holds themselves out as having attorneys in each state, you should immediately request to speak with their attorney representative in your state. Cover your issues openly and honestly. See what feedback you get. Bring up UDAP and false representations if need be. That attorney may actually be able to help you, or may encourage LHDR themselves to get you your money back if they cannot assist.

  • Steve Rhode

    First let me say how much the embezzlement sucks. I’m so sorry to hear that happened to you. I’m surprised that when the credit card companies were notified they didn’t help deal with it. Was it just that too much time had past since the fraud?

    On the LHDR issue the statement you were told that the “tape ran out” before the statement was read to you is highly suspect and does not make logical sense. If LHDR was doing the recording then the “tape” would not run out. They’d have a better system in place than one in which a recording would be cut short by time.

    Here is the bottom line to consider, going with LHDR, any debt settlement company or any attorney to settle your debts is not going to prevent you from being sued anyway. No creditor has to accept any settlement offer and if you are delinquent on the debt they have the legal right to sue you, obtain a judgment, garnish your wages or place a lien on assets.

    The only way to absolutely reduce or discharge your debt and not be sued is to file bankruptcy.

    At this point it seems you are bargaining with which solution is right for you rather than explore all of your options. Before you enter any contract for debt settlement you should speak with a local bankruptcy attorney to understand what reality is, not assumptions and fiction.

    I’m also extremely suspect of the statement the sales representative told you about settling your debt for 25% of what you owe.

    If you can post who your creditors are and the balances I’m sure some of our debt settlement company readers will tell us what those creditors are settling for these days.

    My advice is that you MUST meet with a local bankruptcy attorney and get yourself informed about what bankruptcy actually means for you. You need to make a decision based on facts. Without the facts your information is coming from a sales pitch.

    Steve

  • http://GetOutOfDebt.org Steve Rhode

    First let me say how much the embezzlement sucks. I’m so sorry to hear that happened to you. I’m surprised that when the credit card companies were notified they didn’t help deal with it. Was it just that too much time had past since the fraud?On the LHDR issue the statement you were told that the “tape ran out” before the statement was read to you is highly suspect and does not make logical sense. If LHDR was doing the recording then the “tape” would not run out. They’d have a better system in place than one in which a recording would be cut short by time.Here is the bottom line to consider, going with LHDR, any debt settlement company or any attorney to settle your debts is not going to prevent you from being sued anyway. No creditor has to accept any settlement offer and if you are delinquent on the debt they have the legal right to sue you, obtain a judgment, garnish your wages or place a lien on assets. The only way to absolutely reduce or discharge your debt and not be sued is to file bankruptcy. At this point it seems you are bargaining with which solution is right for you rather than explore all of your options. Before you enter any contract for debt settlement you should speak with a local bankruptcy attorney to understand what reality is, not assumptions and fiction.I’m also extremely suspect of the statement the sales representative told you about settling your debt for 25% of what you owe. If you can post who your creditors are and the balances I’m sure some of our debt settlement company readers will tell us what those creditors are settling for these days.My advice is that you MUST meet with a local bankruptcy attorney and get yourself informed about what bankruptcy actually means for you. You need to make a decision based on facts. Without the facts your information is coming from a sales pitch.Steve

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