The cases keep on coming against Global Client Solutions.
Here is one I just spotted that had been previously filed in state court but was just moved to federal court on May 6, 2011.
Mary Lord v. Alliance 8, Freedom Financial Management, Global Client Solutions, Rocky Mountain Bank & Trust, and Richard Lenard.
The original complaint says the Mary Lord is a 63 year old woman who found out about Alliance8, then Freedom Financial Management, after hearing a radio commercial. Her only source of income is $935 a month from Social Security Disability and $200 a month from a friend.
Freedom Financial Management sold Ms. Lord debt settlement services and included a letter from her attorney Richard Lenard who was to help her if she was sued by her creditors. Only one problem, he was not admitted to practice law in Michigan or California where the company was located.
Her monthly payments were $507 per month and she paid approximately $8,112 in total to Alliance8.
Alliance8 enlisted the help of Global Client Solutions to take the money each month from Ms. Lord.
Three of Ms. Lord’s creditors subsequently sued her and received judgments against her. Her believed lawyer, Lenard, never appeared in court on her behalf, nor allegedly negotiated with any of her creditors. – Source
So it clearly appears the debt settlement company knew Ms. Lord was living on Social Security Disability since they listed it as her employer and position held.
They clearly documented the woman paid $414 a month for rent and utilities and then calculated they would take $507 a month for her monthly debt settlement payment. By their own documentation this left the woman, unemployed for health reasons, $14 a month to live on.
Of the money Ms. Lord paid, the majority of it went to fees paid at the beginning of the program.
If more consumers come forward that were sold similar debt settlement programs, I bet Global Client Solutions is going to have their hands full of cases.
Global Client Solutions Named in Yet Another Case. This Time With Alliance8, Freedom Financial Management, Richard Lenard. by Steve Rhode
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