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Question From James About an Allegro Law Client Refund – Get Out of Debt Podcast

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Question From James About an Allegro Law Client Refund   Get Out of Debt Podcast
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Caller Question

James called with a very unusual situation. Allegro Law was a debt settlement and debt management company that was in the state of Alabama and was closed down. James had a check from them that was issued before they were closed, and it bounced. Ouch! He now wants his money back because he had to make good on the bounced check.

Listen to the Answer

James,

Here is the link I mentioned in the answer. AllegroLawReceivership.com it is not AllegroLawReceivership.org that I’ve seen some people searching for.

Steve

Question From James About an Allegro Law Client Refund - Get Out of Debt Podcast by

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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.
  • http://www.matcmadison.edu Andrew

    Steve,

    I recently attemped to contact attornies about my specific situation via the following email. No one has gotten back to me, and I feel as though I am basically going to be screwed out of ever getting anything back. Perhaps I just am contacting the wrong person about it but I have no idea who to contact. Any insight for me? Here is the email.


    “I am unsure of who to turn to in my specific situation and hope that you might be able and even willing to help me figure out what steps I need to be taking. Since I am very unsure whether you even could help me, I will explain my situation to you and hope that you reply with at least a point in the correct direction.

    Sometime in the last few years I signed up with a debt consolidation company because I started to notice that I was finding it difficult to get rid of my credit card debt. I searched on line for an answer and found a law-firm out of Alabama that interested me. The company was Allegro Law LLC, and after talking to someone there I soon enrolled into their debt management program.

    In this program, Allegro Law basically took down the information of the creditors I chose to bring into the program, contacted them to try to lower the interest rates, then withdrew an amount of money from my checking account monthly (including a fee for themselves), which they then paid out to all the creditors enrolled in the program. The concept was simple enough. Lower the interest rates, pay the minimum payment, and once the minimum payment begins to drop due to the drop in principal, continue to pay the original minimum payment.

    Everything seemed to be working out just fine until about a week ago when I received a statement from one of the many credit card companies that Allegro Law was now in charge of. The statement said that my monthly payment was past due, and that I needed to pay it immediately. I assumed maybe that the statement was simply printed before they had received the usual payment from Allegro Law but I called them and they confirmed that they had not received any payment.

    At that point I became worried and angry, and called the the number that I had for them (1 866 648 7878). I had called in the past and usually sat on hold and then talked to a representative but this time all i got was a recorded message.

    After searching online I came across a few web pages bringing me up to speed with the situation.

    http://allegrolawreceivership.com/news.asp

    I checked my bank account and the last time a payment was taken out for Allegro was on March 23rd. I logged onto Allegro’s website and according to that they paid money out to my creditors on March 29th. According to my creditors, The last payment they received was before March 23rd when Allegro Law took out their last payment.

    All I really understood from the bankruptcy statement on the above website and on the telephone message was, “There will be no further debt management payments nor debt settlement action taken. All customers of Allegro Law, LLC should have all draws from their accounts stopped and no further payments should be sent.’

    Obviously Allegro took a withdrawal from my account (the amount was $285.00) on the 23rd of March. They claim to have paid out the proper amounts to my creditors on the 29th (they didn’t), they failed to notify me at all on what was happening, several credit cards became past due and obtaining charges and added interest, and since I had to stop the payments to them, I was also charged a stop payment fee (29.00) by my bank.

    Overall, the service was not there and I was paying for it, and I am unsure why they were allowed to withdraw any money from any account in their situation. I am unsure whether anything can be done due to the fact that they have filed for bankruptcy, but I feel that there should be something that I can do. If you have any advice, or anything that you can do I would appreciate it.”

    I guess I am just looking for a person to contact about my situation, or someone to tell me just to suck it up. Anything you can tell me would surely help more than anyone else seems to want to.

    Thankyou so much,
    -Andrew

    • http://GetOutOfDebt.org Steve Rhode

      Andrew,

      At this point the only recourse I know that you have is to complete a creditor claim form since the funds you had on deposit will be part of the pool of funds that will be divided among unsecured creditors. You might want to subscribe to this other post and watch the comments on it for updates.

      You will receive no additional service from Allegro, your creditors will not be notified, the underlying service company, Americorp, has ceased all work on Allegro clients and I am told has laid off staff.

      If you were in the debt management program with Allegro then you can contact your creditors directly or contact a credit counseling company, like this one, for assistance in moving your account for continued debt management help.

      If you were in the debt settlement side of Allegro then you are back to square one, the money you paid in was taken or now frozen by the court. You should probably talk to a local bankruptcy attorney.

      Steve

  • Eric Wilson

    This firm is in a Legal Sue and I would like returns on all my funds. Client #804911
    06/03/09 $325.00
    07/20/09 $300.00
    08/04/09 $208.00
    09/03/09 $208.00
    10/05/09 $208.00

    Some one should call me immediately, as nothing has been done with any of the creditors at all since the inception of the account for dept settlement.

    Eric Wilson
    703 969-9600 (if voice mail – leave a message)

  • http://clientID#15165 joseph simms

    TO;mr, Lewis colley.my name joseph simms iwould like a full refund of my money. how soon will i able to received it? please email me and let me know.thank you,

  • Michelle

    One more question, sorry. If I go to sign up with another debt relief company would they be able to obtain all moneys from Allegro and all paperwork so negotiations could start again?

    • http://GetOutOfDebt.org Steve Rhode

      Michelle,

      Any new debt settlement group you sign up with would not receive your money frozen by the courts at Allegro, nor your paperwork.

      Steve

  • Michelle

    Oh, by the way. I never contacted Allegro Law directly. I email the Hermosa Group and a customer service rep called me a minute after I sent the email to Hermosa wanting debt relief information. I initially thought it was a customer service rep with Hermosa. After a while on the phone they stated they were the Allegro Law Group and I questioned it and they stated they were partnered with the Hermosa Group to handle debt relief.

  • Michelle

    I am a current client of Allegro Law. Why have I not been notified in writing that this is happening? What is going on with my account? I have $521.00 debited out of my account each month since April of 09. I emailed customer service in July of 09 wanting to know some basic info with no response, In August I called customer service and was on hold for 2 hours then disconnected. I called back and was on hold again for just over 2 hours and asked for a break down of my creditors and who was contacted by them (Allegro) and what offers was on the table. I was told that would be sent out to me but never was. I asked about why there was never a web site available for me to look at my account and was given the answer that it would be up and running in a few days. Again that did not happen and now the “Go Daddy” site Allegro tagged is no longer found to exist. I have had several of my creditors go to civil court to get judgments against me and all the while I thought they were under negotiations. What do I do now? After reading the “Frequently Asked Questions” about what a receiver is I am unsure as to what it is that I need to do. Should I close my bank account and open a new one? Should I continue on with the receiver? I received a notice in the mail today of one of my creditors wanting to settle for less than half of what I owe. If I send that notice in to be put into my file with Allegro will it be lost forever? If I ask for my money back will I ever see it? I have a lot of questions and I need answers of what it is that I should do.

    • http://GetOutOfDebt.org Steve Rhode

      Michelle,

      I think many of your questions are answered in the long list of comments above. Set aside some time to read through them.

      It certainly sounds like you might be better off going bankrupt and terminating this debt than sitting by and being sued. Your money at Allegro is probably going to be frozen and held by the courts for the next year.

      Steve

  • Regina

    I’m just got finish this site and I had no idea that this was going on. I have been with Allegro for almost a year.
    Is there any way I opt out from Allegro?

    • http://GetOutOfDebt.org Steve Rhode

      Regina,

      You can find discussion of how to opt-out of Allegro in the comments above. Follow the link back to the comments section.

      Steve

  • cecilia

    filling bankcruptcy chapter 13 is the only way out, i blamed Allegrowlaw firm.I Hope someday soon i get my money back to replace the money i used to file for bankrupcty.Good luck to all who’s trying to get their refund. If you get your refund before me…. pls let me know how you did it. I need my refund badly.

  • cecilia

    I feel sorry for the people that are still signing on with the Allegrow Law Firm. People don’t know anything about the mess and scams that were created. Ralph, believe me i tried everything i could to get my refund. I wrote and sent regular mail to Mr.Colley also wrote and emailed CMS ALLEGROW CLAIMS. I have called different 800 numbers and nothing has happened. They didn’t take long to get our money from our bank account, but now that we want our refund it’s going to take a year or longer to get it back. Shame on these people.

  • Ralph Hartsock

    is there anyone at allegro law we can call about our debt case i tried to call mr. colley & even tried to e-mail but it would not go through. can you help me thank you

  • Linda Hills

    I would like to know when I am going to get my refund back I really need my money so please let me know something about my money.Thank you Linda Hills

    • http://GetOutOfDebt.org Steve Rhode

      Linda,

      It may take a year or longer for the court to release the funds based on the experiences of other similar situations.

      Steve

      • http://yahoo.com nathaniel Holmes

        Sir: I would greatly appreciate any help that you may be able to give me in recouping my refund of 2200.00 dollars, in which allegro law has debit from my account knowing that they were in the process of filing bankruptcy.

      • http://GetOutOfDebt.org Steve Rhode

        It’s all in the hands of the bankruptcy court now.

        Steve

  • cecilia

    STEVE,
    THE END IS NEAR, WE WILL SOON FILE BANKRUPTCY. THANKS TO ALLERGOLAW OUR LIVES ARE DESTROYED. I MAY BE LATE ON MY PAYMENTS 15/ 20 DAYS BUT I ALWAYS GOT CAUGHT UP. WHEN ALLEGROLAW PROMISED MY DEBT WILL BE PAID IN 36 MONTHS I SAID WOW THAT’S A DEAL. I CALLED AND THEY ASKED FOR $3,000 TO PROCESS THE FIRST STEP. NOW THEY HAVE DONE MORE HARM THAN GOOD. WE ARE IN DEEP TROUBLE NOW WITH OUR CREDITORS. I BELIEVE THAT THE PEOPLE WHO DID US SO WRONG WILL BE PUNISHED BY SOMEONE UPSTAIRS. I BELIEVE IN GOD. I HAVE FAITH IN HIM. WHAT’S GOES AROUND COMES AROUND. FOR ALL THE PEOPLE INVOLED AND THOSE WHO MADE THIS MESS YOUR DAYS WILL COME AROUND. THANK YOU STEVE FOR POSTING THESE ARTICLES, AND THANK YOU FOR YOUR HELP AND ADVISE ON THIS MATTER. GOD BLESS YOUR HEART.

  • Linda Garrett

    I was advised by a Customer Service Rep. of AllegroLaw that there is an on-line form to fill out for requesting a refund of payments. I can find no such form. Please advise me of how to go about requesting my money. I, like everyone else who participated in this program, am in great need of that money especially now, as I am being sued by a creditor because Allegro Law did nothing to settle the debt. They now inform me they can not help. They took my money and have done nothing but keep it.

    • http://GetOutOfDebt.org Steve Rhode

      Linda,

      Here is what the receiver’s site says regarding debt management claims.

      “As mentioned in previous updates, all debt management plans are being continued so long as the clients’ payments are timely and agreements have been reached with creditors. All clients requesting refunds will be required to participate in a claims process which will be established through the Autauga County Circuit Court. This process has not yet been established and it may be some time before it is fully implemented. If you have a question regarding your status in a debt management plan, you may call 1-888-361-3303.

      If you wish to terminate your plan, this should be done so in accordance with the provisions contained in your original information package and must be done in writing. As mentioned above, if you are requesting a refund, this will require participation in a claims process which unfortunately may be lengthy.”

      Here is the current information regarding claims for debt settlement funds.

      “Numerous calls and correspondence are being received regarding debt collection actions and lawsuits filed by creditors. Please be advised that the Receivership of Allegro Law can provide no protection or legal representation pertaining to any lawsuit filed by a creditor against you. You should seek separate legal representation regarding any such actions. A claims process is being established for refund of what escrow money may be available to the debtors under the supervision of the Autauga County, Alabama Circuit Court. Unfortunately this may be a lengthy process. Settlements with creditors are still being attempted with escrow funds available.”

      Steve

  • cecilia

    STEVE,
    THANK YOU FOR YOUR RESPONSE. I HAD TO CANCEL BANK DRAFT TO ALLEGRO THIS MORNING. IF THE ASSETS FROM THE COMPANY ARE FROZEN AND FUNDS ARE STILL TAKEN FROM MY BANK ACCOUNT, THEN WHERE DOES THAT MONEY GO?

    • http://GetOutOfDebt.org Steve Rhode

      Cecillia,

      It sits frozen in the account controlled by the receiver.

      I’m still a bit thunderstruck that funds were still be taken out and deposited in a frozen account, but it was apparently a process oversight.

      Steve

  • cecilia

    i have been a client with allegro law firm, in debt settlement counseling since january2009.they take $1,954.oo dollars out of my checking i have paid over $15,ooo in past 8 months. now iam told i only have $5,000 dollars in my escrow account.based on these previous actions with allegorlaw reciever i have decided i want to terminate my enrollment in the program i also requested a refund of the funds left in my escrow account so i can use for my 18 years old daugther’s college funds. do you think i’ll get the my funds back? do you think im doing the right thing to cancelle the account?

    • http://GetOutOfDebt.org Steve Rhode

      Cecilla,

      If you want to stop additional withdrawals from your bank account you should contact the customer service number you have and stop them. If you terminate out of the program what is your Plan B? How do you intend to deal with your debts then? Bankruptcy is the logical choice.

      I’m afraid that it will probably be a year or so before refunds are released by the court.

      Steve

  • Joan L. Bolton

    I asked Allegro law llc to help me get out of debt about a year ago. Thay take 140.00 out of my checking acct. Each mo. Will thay stop taking my money ,now that a reciver has taken over? Im on ss, My husban passed in 2002, Right now I don’t much left after my bills. Please help me . Thankyou Mrs Joan L. Bolton

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