Latest Posts
Home > Debt Relief Industry > Legal Helpers Debt Resolution and Global Client Solutions Named in NJ Class Action

Legal Helpers Debt Resolution and Global Client Solutions Named in NJ Class Action

Dora Smith v. Legal Helpers Debt Resolution and Global Client Solutions, Macey, Aleman, Hyslip & Searns

On September 22, 2011 this New Jersey class action case against Legal Helpers Debt Resolution and Global Client Solutions was moved to Federal Court.

The case states:

“On March 17, 2010, Plaintiff and Defendant Legal Helpers Debt Resolution entered into an agreement by which that Defendant would “review [Plaintiff's] current unsecured debt burden and thereafter negotiate and attempt to enter into settlements with creditors of this [Plaintiff] in an effort to modify and/or restructure [Plaintiff's] unsecured debt.”

The contract Dora Smith signed is said to have contact statements that LHDR would subcontract out certain tasks and one of those contractors was Global Client Solutions.

It is stated that Smith paid LHDR an initial fee of $500 and then to pay a monthly “maintenance fee” of $50 per month. She was also to pay CDS Client Services, 15% of the total scheduled debt.

Smith was instructed to inform debt collectors she is “currently being represented by an attorney regarding payment on this account” but there do not appear to be any New Jersey licensed attorneys associated with LHDR.

Global Client Solutions is dragged in to this case because they were a payment facilitator and it appears the fees for 3rd party services, such as Global Client Solutions, were not included in the calculations presented. It seems to be a problem we’ve discussed here before about Global Client Solutions allegedly not knowing if the companies they were providing services for were indeed complaint in the states they provided services.

The suit states the the services provided did not comply with debt relief agency restrictions of the U.S. Bankruptcy Code and constituted “bankruptcy advice” as defined at 11 U.S.C. 101 4(A).

LHDR is charged with a violation of the New Jersey Consumer Fraud Act since it was stated “Defendants have engaged in a joint enterprise to engage in actions in violation of New Jersey law by means of the deceptive and unconscionable business practice.”

Defendants are charged with violating the New Jersey Debt Adjuster Act since LHDR appears to never have been licensed in New Jersey, they would not be entitled to an exemption as “an attorney-at-law of this State.” – Source

Legal Helpers Debt Resolution and Global Client Solutions Named in NJ Class Action
Get Out of Debt Guy – Twitter, G+, Facebook

I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.

Legal Helpers Debt Resolution and Global Client Solutions Named in NJ Class Action by

Share This and Spread the Word

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.
  • sunshine

    Iam currently a client with Legal Helpers but I have had no problem with the company thus far…

  • Anonymous

    I wonder if Persels and Associates or other attorney models are going to stop doing business in NJ?  You’re right Steve, it does look like LHDR is not exempt “an attorney-at-law of this State.”  They probably figure that they are always principally engaged in debt adjusting….

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.