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Home > Debt Relief Industry > Legal Helpers Debt Resolution Slapped with Class Action Case in North Carolina. Local Attorney Said to Be Just a Front.

Legal Helpers Debt Resolution Slapped with Class Action Case in North Carolina. Local Attorney Said to Be Just a Front.

This case is so fresh I’m not sure if Legal Helpers Debt Resolution even knows about it yet.

On June 9, 2011 Stewart v. Legal Helpers Debt Resolution, Macey, Aleman, Hyslip & Searns, CDS Client Services, Jeffrey Hyslip, and Linda Carol was filed.

The suit alleges the Legal Helpers Debt Resolution (“LHDR”) holds itself out as a law firm that settles debts. The sales process works with “financial representatives to provide much of the “front end” sales work of intaking and signing debtors up to purportedly begin an attorney client relationship with LHDR for the settlement of debts.” LHDR pays a fee to these representatives.

The consumer in this case received a direct mail piece that led to Armored Financial Services and Eric Chung. Chung is not an attorney.

The contact the consumer entered into provides for advance fees that are collected prior to the completion of debt adjusting services. LHDR outsourced the account services and negotiations to be provided to CDS Client Services.

The complaint states that in an attempt to skirt NC laws regarding limitations on advanced fees for debt adjusting, LHDR ran ads on craigslist looking for attorneys. Linda Carol is identified as an attorney licensed in NC to represent LHDR. “However, the services provided to the Plaintiff and others similarly situated through LHDR were not actively performed by an attorney licensed to practice law in North Carolina.”

Jeffrey Hyslip sent a letter to Capital One claiming to represent the consumer but Hyslip is not licensed to practice law in North Carolina.

Legal Helpers Debt Resolution Slapped with Class Action Case in North Carolina. Local Attorney Said to Be Just a Front.

The complaint alleges that LHDR and CDS are acting as an illegal debt adjusters in North Carolina and that the authorized North Carolina attorney, Linda Carol, does not actually provide services to Plaintiff nor communicated with the Plaintiff.

Neither Hyslip nor any manager of LHDR is licensed to practice law in North Carolina. The complaint alleges that is in violation of sections 55B-16(2) and 55B-4(3) NC Gen Stat.

“Upon information and belief, under a substantial number of LHDR’s advance fee contracts, financially pressured clients cannot and do not make their scheduled monthly payments under the Contract and therefore lost all advance amounts paid to LHDR and CDS without receiving and debt settlement results of benefits.”

“The legal services provided by LHDR under the Contract, consisted of one letter attached hereto as Exhibit D, were therefore de minimis, and accordingly its promises under the Contract were illusory. At most, LHDR provided clerical and administrative services to the Plaintiff, while CDS was to do the primary work of negotiating with Capital One.”

The lawsuit states that while LHDR attempted to exempt itself under North Carolina law as attorneys engaged in debt adjusting, the services were not provided by attorneys licensed to practice law in North Carolina.

LHDR has not settled any debts to date. “When the Plaintiff contacts LHDR regarding the progress of his debt settlement, the non-attorney agents with whom he speaks inform him that LHDR will do nothing until he has paid all payments under the Contract, a total of $25,975.20, which is an amount equal to 60% of his original total debt outstanding owed to Capital One”

Local NC attorney Carol is accused of acting negligently in the suit. The complaint states…

Legal Helpers Debt Resolution Slapped with Class Action Case in North Carolina. Local Attorney Said to Be Just a Front.

You can read the entire lawsuit here.

Other Legal Helper Debt Resolution consumers that live in North Carolina who want to learn more about this case should contact the attorney that filed it:

Stuart Sloan, Esq.
53 E. Main Street, Suite B
Franklin, NC 28734
[email protected]

Legal Helpers Debt Resolution Slapped with Class Action Case in North Carolina. Local Attorney Said to Be Just a Front.
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Legal Helpers Debt Resolution Slapped with Class Action Case in North Carolina. Local Attorney Said to Be Just a Front. by

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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.
  • Errick

    Reckoning, sorry.

  • Errick

    That was a rhetorical question right?  How could they service their clients properly?  They don’t even try.  In fact, as I have been trying to explain to people, the whole object is to get all the clients dropped out after the fees are paid and before the hard work starts.  Maybe by luck one or two makes it to the end, but definitely not by design.

    Yes I heard: Zoinks, but the advanced fee ban changes everything Scooby!  WRONG.  In fact it makes it easier to hide the fact that you have scheduled the demise of your client, after you have picked the low hanging fruit.  It is true you have to work harder and spend more, but in the end, it is still much cheaper to get three clients one-third of the way through, than one client all of the way through.

    It’s not merely that they do a poor job, it’s that they are throwing the game, that someday (not soon I fear) there will be a reckining.

  • A Happy Guest

    Thank goodness. I hope that other states wake up and start filing as well.

  • A Happy Guest

    Thank goodness. I hope that other states wake up and start filing as well.

  • Question

    With all the money they are paying out to marketing and commissions, how could they possibly be able to service their clients properly, pay attorneys and make a profit? Is all of the work being done in India? I don’t think so!

    Before the TSR there was one company that let front ends charge up to 15%, collect it as fast as they wanted, the sales org would keep the full 15% as sales people could structure the deal so there was NO money going to savings for a year or so, and the backend only took took $49 a month to service the client.

    Besides poor services to consumers, competing companies charging fair fees with fair splits trying to properly service their clients could not afford the high CPAs that some of these other marketing companies netting say $4500 a deal could. Same thing is occuring with LHDR and the folks obeying the TSR and trying to charge fair fees.

    While Damon has been so kind as to offer the good guys free leads if they hack up their already low fees and work for for several months without seeing a dime, most of the good guys won’t be able to sustain much longer.

  • Damon Day

    Ha ha, that last one was funny Errick

  • Errick

    Amen.  I would not want to be Linda Carol, she is the weak link.  At best she can only say she didn’t know that her clients were set up to lose.  Of course that will be pretty hard:

    Were you aware that Legal Helpers systematically settled accounts at a higher rate than your clients could afford to pay after fees? No?
    Were you aware that Legal Helpers systematically settled only small accounts? No?
    Were you aware that Legal Helpers systematically failed to settle accounts in litigation? No?
    Were you aware that Legal Helpers never employed sufficient staff to settle all client accounts? No?
    Were you aware that most of your clients had at least one account that could not be settled by Legal Helpers because of the creditor’s policies? No?
    Did you inform your client when a creditor told Legal Helpers they would not settle an account? No?
    Did you actively supervise nonlawyers at Legal Helpers? No?
    Do you have any clients who succeeded at their Legal Helper plans? Can you name a single one? No?
    Are you suffering from any sort of mental impairment that would explain your inability to remember anything about your clients?

    Game on indeed.

  • Damon Day

    Let this serve as yet another shot across the bow to all of those state attorneys who have signed on to front Legal Helpers.  They are hurting consumers and you are helping them and like Linda Carol you might soon find yourself wrapped up in more than you bargained for. 

    Take this as an opportunity to take a realistic look at what is going on at Legal Helpers, and perhaps get out while you can.  Just some friendly advice, especially to those attorneys who have just recently signed on and perhaps really didn’t know what they were getting into.

    Game on.

  • http://DamonDay.com Damon Day

    Let this serve as yet another shot across the bow to all of those state attorneys who have signed on to front Legal Helpers.  They are hurting consumers and you are helping them and like Linda Carol you might soon find yourself wrapped up in more than you bargained for. 

    Take this as an opportunity to take a realistic look at what is going on at Legal Helpers, and perhaps get out while you can.  Just some friendly advice, especially to those attorneys who have just recently signed on and perhaps really didn’t know what they were getting into.

    Game on.

    • Errick

      Amen.  I would not want to be Linda Carol, she is the weak link.  At best she can only say she didn’t know that her clients were set up to lose.  Of course that will be pretty hard:

      Were you aware that Legal Helpers systematically settled accounts at a higher rate than your clients could afford to pay after fees? No?
      Were you aware that Legal Helpers systematically settled only small accounts? No?
      Were you aware that Legal Helpers systematically failed to settle accounts in litigation? No?
      Were you aware that Legal Helpers never employed sufficient staff to settle all client accounts? No?
      Were you aware that most of your clients had at least one account that could not be settled by Legal Helpers because of the creditor’s policies? No?
      Did you inform your client when a creditor told Legal Helpers they would not settle an account? No?
      Did you actively supervise nonlawyers at Legal Helpers? No?
      Do you have any clients who succeeded at their Legal Helper plans? Can you name a single one? No?
      Are you suffering from any sort of mental impairment that would explain your inability to remember anything about your clients?

      Game on indeed.

      • http://DamonDay.com Damon Day

        Ha ha, that last one was funny Errick

      • Question

        With all the money they are paying out to marketing and commissions, how could they possibly be able to service their clients properly, pay attorneys and make a profit? Is all of the work being done in India? I don’t think so!

        Before the TSR there was one company that let front ends charge up to 15%, collect it as fast as they wanted, the sales org would keep the full 15% as sales people could structure the deal so there was NO money going to savings for a year or so, and the backend only took took $49 a month to service the client.

        Besides poor services to consumers, competing companies charging fair fees with fair splits trying to properly service their clients could not afford the high CPAs that some of these other marketing companies netting say $4500 a deal could. Same thing is occuring with LHDR and the folks obeying the TSR and trying to charge fair fees.

        While Damon has been so kind as to offer the good guys free leads if they hack up their already low fees and work for for several months without seeing a dime, most of the good guys won’t be able to sustain much longer.

      • Errick

        That was a rhetorical question right?  How could they service their clients properly?  They don’t even try.  In fact, as I have been trying to explain to people, the whole object is to get all the clients dropped out after the fees are paid and before the hard work starts.  Maybe by luck one or two makes it to the end, but definitely not by design.

        Yes I heard: Zoinks, but the advanced fee ban changes everything Scooby!  WRONG.  In fact it makes it easier to hide the fact that you have scheduled the demise of your client, after you have picked the low hanging fruit.  It is true you have to work harder and spend more, but in the end, it is still much cheaper to get three clients one-third of the way through, than one client all of the way through.

        It’s not merely that they do a poor job, it’s that they are throwing the game, that someday (not soon I fear) there will be a reckining.

      • Errick

        Reckoning, sorry.

  • Judgment Day

    LHDR (Legal Helpers Debt Resolution) won’t be around for another year. When Macey, Hyslip, Searns and Aleman take the money and run, it will be judgment day for their associated cohorts and affiliated minions. The scheme is a house of cards, and the ponzi foundation is supported by nothing more than a couple of Bar licenses held by a couple of guys that will be laughing their asses off at all of you while they put down their next Mai Tai on some tropical beach far, far away…

  • Judgment Day

    LHDR (Legal Helpers Debt Resolution) won’t be around for another year. When Macey, Hyslip, Searns and Aleman take the money and run, it will be judgment day for their associated cohorts and affiliated minions. The scheme is a house of cards, and the ponzi foundation is supported by nothing more than a couple of Bar licenses held by a couple of guys that will be laughing their asses off at all of you while they put down their next Mai Tai on some tropical beach far, far away…

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