The AG’s office in West Virginia just forwarded me a copy of their suit against Robert Lock and Phillip Manger of the ill fated Credit Card Defense Network. CCDN has been in a heap of trouble for some time now.
Robert Lock, an attorney, was all over the net in the past few year bragging about how his techniques and Credit Card Defense Network company could get people out of debt.
What makes this suit interesting, unlike this other one where CCDN was a target for their novation approach, is that the State of West Virginia is going after CCDN as a debt settlement company. In the complaint the State of West Virginia says that CCDN provided debt relief services including debt settlement and credit repair.
The State also went after CCDN for the very same issue that I think could scupper all of the attorney based debt settlement companies, fee splitting. An attorney is not allowed to split fees paid for services with non-attorneys and the claim is that CCDN split fees paid for legal services with its non-lawyer marketing agents.
What makes this CCDN situation ironic is that the former marketing manager for CCDN filed Chapter 7 bankruptcy rather than use the service of the Credit Card Defense Network to deal with his own debt.
A copy of the WV suit against CCDN can be found here.
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