On April 2, 2012 Legal Helpers Debt Resolution filed suit against Reliant Account Management Systems and Reliant Account Management. These are companies that helps client funds for the debt settlement program.
According to the suit, Reliant Account Management (RAM) “is a payment processing company used by Legal Helpers and more than 5,000 of its clients to process payments by client from their individual bank accounts into a trust account which in turn is used both to pay clients’ creditors and to pay for the services provided by Legal Helpers.”
This suit alleges that Legal Helpers did not terminate all of its outside affiliate/franchise/backend relationship and instead says it terminated “several.” The suit states, “RAM has refused to acknowledge compliance with lawful instructions regarding disbursement of funds held in the client trust account both for payment of creditors and for the payment of Legal Helpers’ service fees. Instead, RAM has forwarded to LHDR letters from the [outside administrative support companies] directing RAM to disobey client instructions.”
Reliant Account Management Systems, LLC and Reliant Account Management, LLC are both California companies. The suit states Reliant Account Management Systems is comprised of GS Associated Holdings, LLC; Lakewood J & B Development, Inc; and Data Pro Services, Inc. Reliant Account Management is said to be comprised of GS Holdings, LLC and Lakewood J & B Development, Inc.
Legal Helpers states that it currently services 18,500 clients nationwide and that RAM is one of three payment processors that Legal Helpers contracts with.
As of March 30, 2012 Legal Helpers instructed RAM “that it should continue processing payments to Legal Helpers, but should no longer withdraw funds from the Legal Helpers Account to pay the OAs for administration services because the OA relationship had been terminated.”
Allegedly RAM has failed to acknowledge it will follow the directions of Legal Helpers and it is alleged “RAM’s failure to acknowledge or perform its duties to Legal Helpers and its clients threatens to cause and will cause irreparable harm to both Legal Helpers and its clients in their debt settlement efforts.”
The letter sent to RAM identifies JEM Group, Nationwide Support Services and Service First Financial as companies that were terminated by LHDR.
Legal Helpers Debt Resolution Sues Over Client Funds by Steve Rhode
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