Reader Questions

I Am a Current LHDR Client. – Anita

I read in your 9/27 discussion online that the old contract will not be used in one month because it is being revised to be FTC compliant and that there will be face to face meetings with an atty. Does this change the contracts that current LDHR clients are under?

Anita




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READ  Illinois Calls Legal Helpers Debt Resolution a Scam, Yet Again. This Time Announcing Settlement.



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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.

22 Comments

  • Like hell they’re honest. I spent four and a half solid months being alternately ignored or lied to by LHDR.

  • “The most honest company in this business”?? So, until two months ago they were a law firm that provided NO legal representation- But in order to continue to charge fees up front (illegal now) they raise their fee and now offer it? Success rates for their previous (2 months ago) model are BELOW 10%. The FTC states its probably closer to 2%.

    I know youve probably been making a great living selling their “service” but look at all the complaints. How in the world can you make that statement? Even current employees have posted numerous times regarding their directives to only service 1st calls & just get the money at all costs & to steer everyone into settlement.

    There are honest companies in this business- So long as youre selling for Legal Helpers, you are NOT one of them. Good luck affiliating yourself with them Debt Dog.

    https://getoutofdebt.org/18314/

  • Damon,

    The changes were in direct response to the requirements dictated by the FTC. I was working with LHDR before the FTC decision and there was no legal representation. The FTC ruling was what caused LHDR to represent new customers because they moved to a completely legal based model. LHDR did not raise their fees to placate anyone – they put in a monthly legal defense fee. Otherwise it’s the same as it was before. It cost money to have someone meet with an attorney to sign the contract, and to represent them in court if they are sued.

    Why didn’t they represent clients before? Because it’s exceedingly difficult to manage a network or attorneys in all 50 states to not only meet with clients but defend them. LHDR spent millions putting the new program together. Additionally it’s more expensive for the clients and many need to keep costs low since they are in debt.

    LHDR is the most honest company in this business I have dealt with. The regulations, restrictions, and controls they have implemented have made my job much harder but is terrific for the consumer.

    I am not going to tell you what the defenses are but there are multiple defenses if you are sued for credit card debt. If you read my blog you will see a major one I just posted about.

    Scott
    http://www.debtdog.com

  • Let me see if I understand. In order to placate existing clients who are getting the shaft by paying all of their fees upfront with no representation, LHDR recently raised their fees so they could calm existing clients down by pretending that they really got the best deal. So with a little bit of misdirection, Legal Helpers can continue to give them the shaft and make them feel like they got a great deal at the same time. Brilliant, just Brilliant! The marketing department at Legal Helpers must be clocking a lot of overtime.

    Also about this peace of mind business. How does Legal Representation provide peace of mind? What is the client’s defense when they get sued? If Legal Representation is so great for consumers, why didn’t Legal Helpers provide it before? Why only make the change now?

  • I run http://www.thedebtdog.com and am also very aware of the LHDR policies.

    Any contracts entered into before the FTC change went into effect on October 27th won’t change. All contracts entered into after that point include legal representation and the initial client meeting an with attorney.

    However it’s not necessarily bad if you entered into the contract before the FTC rules went into effect. You end up paying less money and therefore saving more money in the end. In order for LHDR to comply with the FTC rules they have to have an in person meeting for the signing of the contract. That increased the up front fee for legal services. Also there is now a monthly charge for legal representation (because they can’t afford to represent people for free).

    If you are in the old program you won’t get represented but you will save thousands.

    I was aware of this change and gave my clients the choice – sign up before or after. Some chose to sign up before and save the money and some chose to wait and wanted the legal defense.

    If you are in the old program they will still advise you and try to settle the account should litigation occur – that’s the way it was done for a very long time and it was very successful – the banks would rather settle than litigate.

    If you’re in the new program you have peace of mind but at a cost.

    I think both ways work well and LHDR is the top company in the business so you will be well served.

  • I run http://www.thedebtdog.com and am also very aware of the LHDR policies.

    Any contracts entered into before the FTC change went into effect on October 27th won’t change. All contracts entered into after that point include legal representation and the initial client meeting an with attorney.

    However it’s not necessarily bad if you entered into the contract before the FTC rules went into effect. You end up paying less money and therefore saving more money in the end. In order for LHDR to comply with the FTC rules they have to have an in person meeting for the signing of the contract. That increased the up front fee for legal services. Also there is now a monthly charge for legal representation (because they can’t afford to represent people for free).

    If you are in the old program you won’t get represented but you will save thousands.

    I was aware of this change and gave my clients the choice – sign up before or after. Some chose to sign up before and save the money and some chose to wait and wanted the legal defense.

    If you are in the old program they will still advise you and try to settle the account should litigation occur – that’s the way it was done for a very long time and it was very successful – the banks would rather settle than litigate.

    If you’re in the new program you have peace of mind but at a cost.

    I think both ways work well and LHDR is the top company in the business so you will be well served.

    • Let me see if I understand. In order to placate existing clients who are getting the shaft by paying all of their fees upfront with no representation, LHDR recently raised their fees so they could calm existing clients down by pretending that they really got the best deal. So with a little bit of misdirection, Legal Helpers can continue to give them the shaft and make them feel like they got a great deal at the same time. Brilliant, just Brilliant! The marketing department at Legal Helpers must be clocking a lot of overtime.

      Also about this peace of mind business. How does Legal Representation provide peace of mind? What is the client’s defense when they get sued? If Legal Representation is so great for consumers, why didn’t Legal Helpers provide it before? Why only make the change now?

      • Damon,

        The changes were in direct response to the requirements dictated by the FTC. I was working with LHDR before the FTC decision and there was no legal representation. The FTC ruling was what caused LHDR to represent new customers because they moved to a completely legal based model. LHDR did not raise their fees to placate anyone – they put in a monthly legal defense fee. Otherwise it’s the same as it was before. It cost money to have someone meet with an attorney to sign the contract, and to represent them in court if they are sued.

        Why didn’t they represent clients before? Because it’s exceedingly difficult to manage a network or attorneys in all 50 states to not only meet with clients but defend them. LHDR spent millions putting the new program together. Additionally it’s more expensive for the clients and many need to keep costs low since they are in debt.

        LHDR is the most honest company in this business I have dealt with. The regulations, restrictions, and controls they have implemented have made my job much harder but is terrific for the consumer.

        I am not going to tell you what the defenses are but there are multiple defenses if you are sued for credit card debt. If you read my blog you will see a major one I just posted about.

        Scott
        http://www.debtdog.com

        • “The most honest company in this business”?? So, until two months ago they were a law firm that provided NO legal representation- But in order to continue to charge fees up front (illegal now) they raise their fee and now offer it? Success rates for their previous (2 months ago) model are BELOW 10%. The FTC states its probably closer to 2%.

          I know youve probably been making a great living selling their “service” but look at all the complaints. How in the world can you make that statement? Even current employees have posted numerous times regarding their directives to only service 1st calls & just get the money at all costs & to steer everyone into settlement.

          There are honest companies in this business- So long as youre selling for Legal Helpers, you are NOT one of them. Good luck affiliating yourself with them Debt Dog.

          https://getoutofdebt.org/18314/legal-helpers-debt-resolution-scam-complaint-review-or-praise

        • Like hell they’re honest. I spent four and a half solid months being alternately ignored or lied to by LHDR.

  • Nope, sorry it is not retroactive, and so far I have actually not seen anything from LHDR that shows they will be lowering their fees anyway. Mr Macey, a senior partner at LHDR was supposed to send me their updated plan after 9/27 and he said I would be pleased with it. So far I haven’t received it, or seen it anywhere.

  • Nope, sorry it is not retroactive, and so far I have actually not seen anything from LHDR that shows they will be lowering their fees anyway. Mr Macey, a senior partner at LHDR was supposed to send me their updated plan after 9/27 and he said I would be pleased with it. So far I haven’t received it, or seen it anywhere.

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