Yet another Legal Helpers Debt Resolutions business development manager has come forward. How many business development managers does the company have. This one is associated with a different URL so is each URL a different business unit? Confusing to say the least.
The business development manager for Legal Helpers in this email is listed as mdrehwing@lhdrhelp.com. The one the other day was jordan@legalhelpers-dr.com.
And before someone at Legal Helpers Debt Resolution corrects me again for just using Legal helpers, your own people do!
The mystery surrounding the multiple domains deepens.
lhdrhelp.com is hosted on a server that is reported to be in California – Culver City – Media Temple Inc. It also hosts the following domain names. I’ve also listed the last publicly registered administrative contact of the domains on that server.
Debtinate.com – Elimadebt, Daniel Blumkin, dblum@timberlinecapitalusa.com
Debtlogicusa.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Elimadebtnow.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Encorecapitalusa.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Encorefactors.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Encorelhdr.com
Fusionclientservices.com
Helpsettle.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Helpsettle.info – AMTurnkey, Inc, Joe Sederholm, jsederholm@amturnkey.com
Helpsettle.net – Daniel Blumkin, dblum@timberlinecapitalusa.com
Legalhelperssupport.com
Lhdrhelp.com
Manhattanshoppingparty.com – Manhattan Shopping Party, Tami Baruch, Tam@ManhattanShoppingParty.com
Purecleanersny.com
Purecleanersnyc.com
Sfnewyork.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Timberlinecapitalusa.com – Timberline Capital, LLC, Ryan Sasson, sasson531@aol.com
Timberlineprocessing.com
Valuedhealth.com – Annulet, Inc, RN WebReg, brokerage@buydomains.com
Daniel Blumkin, and Ryan Sasson were part of Elimadebt. – Source
legalhelpers-dr.com is hosted on a GoDaddy.com server in Arizona with thousands of other sites. They appear to be two distinctly different sites. Hosted by different underlying affiliates maybe? How is the public to know?
The Email Pitch
Here is the latest marketing pitch email.
Take a close look at the email and you’ll be surprised by the claims it makes.
- Collect money in month 1. (This is instead of earning fees when a debt is actually settled.)
- Offering debt settlement, debt management, bankruptcy & soon tax settlement.
- Agressive commissions of up to 74% of the price of 15% of the total debt.
- “You can use the Legal Helpers name if you so chose.
The link to the marketing manager went to this page archived here.
Michael Drewing was the former VP of business development at Zuma Debt Solutions.
Fee Calculations
The attached spreadsheet is similar as the one I published here.
Last time I did not cover the fees in the proposed plan but on the sample plan of $50,000 in debt over 45 months the consumer is said to pay:
Settlement Fee: (15%) $7,500
Legal Service Fee: $3,555
Trust Account Fee: $461.25
Initial Program Fee: $825
Live Coaching: $389.70
e-Coaching: $868.55
TOTAL $13,599.50
Fees equal 27% of total debt. That is enormously expensive and not disclosed as a percentage of debt.
The total estimated settlement amount and fees equal $36,099. This means the consumer will save $13,901 off their initial amount enrolled. This is a 27% reduction off the initial balance and not the 45% promoted. This flies in the face of the FTC telemarketing sales rules when it states:
Include the impact of your fees on the claimed savings. You may not inflate your savings claims by excluding the fees your customers paid you.
Example 9: Betty owes $10,000 on her credit card, and signs up with Company J’s debt relief service. Company J gets a settlement allowing Betty to pay $5,000 to resolve the debt. However, at the time of settlement, Company J charges Betty a $1,000 fee for its work. It would be deceptive for Company J to claim to have saved Betty $5,000 – or 50% of her debt – because Betty also had to pay $1,000 in fees. Instead, Company J may truthfully state Betty’s savings as $4,000 ($5,000 minus $1,000) or 40% of Betty’s debt. – Source
But then again I assume that since Legal Helpers is claiming they are exempt from the FTC regulations they might feel they don’t have to live up to the same rules and disclosures that other debt settlement companies do.
What is also not readily apparent is in the 45 month repayment program the balances and creditor fees will increase substantially. It is possible that after paying $13,599 in debt settlement fees, the savings plus increase in balances plus the cost of the program could come out much higher.
Let’s Take a Peak at Probable Reality
The reality is that in a 45 month program the consumer has a slim chance in actually getting out of debt without getting sued. Angelo Anzalone of Active Debt Solutions said, “This raises a bigger question also, anyone in this industry knows that a 45 month program will almost always result in the client receiving a lawsuit and is extremely harmful to the consumer.”
Even if they did manage to settle all their debt without getting sued, including the increase in balance over the length of the program, the actual cost would work out like this:
Settlement Fee: (15%) $7,500
Legal Service Fee: $3,555
Trust Account Fee: $461.25
Initial Program Fee: $825
Live Coaching: $389.70
e-Coaching: $868.55
TOTAL $13,599.50
Including the approximate 20% increase in balances, according to Alex Viecco of New Era Debt Solutions and other debt settlement experts predict will happen, the final amount paid to settle debt at 45% would wind up being $27,000. So this means the total amount most likely to be paid, including all fees, would be $40,599.50. This would only be a savings of 19% off the initial balance of $50,000.
A debtor who enrolls into a Debt Settlement Program who is only 1-2 months behind on their bills will on average see their total overall debt increase 20%. Sometimes more. – Chris Schnorak, Debt Solutions Network
Is the risk of being sued and the chance of not settling all the debt, worth it?
Videos
The email appears to want to discount a poor BBB rating by referring readers to the BBB video below and calling it “hilarious.” It seems like a simple misdirection to me.
BBB
FTC
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What on earth was Legal Helpers Debt Resolution Chicago Headquarters thinking when they hired Steve Vanderhoof of The Credit Exchange? Any reputable organization is not going to want to be in the same building as he is !!!!
What on earth was Legal Helpers Debt Resolution Chicago Headquarters thinking when they hired Steve Vanderhoof of The Credit Exchange? Any reputable organization is not going to want to be in the same building as he is !!!!
Legal Helpers Debt Resolution has just been sued by the Attorney General of Illinois. You can read the suit here.
Legal Helpers Debt Resolution has just been sued by the Attorney General of Illinois. You can read the suit here.
So who then is the underlying nonprofit credit counseling provider?
ALLEGED GIVE ME A BREAK STEVE YOU HAVE NO CLUE ALL THESE ARTICLES ARE BASED OFF OF WHAT SOMEONE SAID AND NOT FACTS. DONT POST UNLESS YOU KNOW HOW IT WORKS BUT PEOPLE TAKE IT AND RUN WITH IT
These guys are all scammers. Blumkin is an ex con and his partner Steven Drescher is as well. Their entities are also owned/controlled by David Feingold, a Florida attorney.
Drescher’s stepson Ryan Sasson is the straw man for them usually. What a surprise these criminals are working with Vanderhoof. Word on the street is that Vanderhoof is about to have some major three letter agency trouble. If anyone can find him!
These guys are all scammers. Blumkin is an ex con and his partner Steven Drescher is as well. Their entities are also owned/controlled by David Feingold, a Florida attorney.
Drescher’s stepson Ryan Sasson is the straw man for them usually. What a surprise these criminals are working with Vanderhoof. Word on the street is that Vanderhoof is about to have some major three letter agency trouble. If anyone can find him!
i wonder if vanderhoof is going to make his management staff at LDHR write a redbox report.
Vanderhoof is working for them now in Chicago and probably has a hand in that one. God help them if this is true.
CBDC = CONSUMER AND BUSINESS DEBT COUNSELING SERVICES INCORPORATED (a not for profit incorporated in MA)
Issac Bobbe is listed as the President and Registered Agent for CBDC. Issac Bobbe was formerly the director of the now defunct ELIMIDEBT MANAGEMENT SYSTEMS, INC., which got into hot waters with the WV AG.
If you look up Issac Bobbe on the Florida’s corporate name search, you’ll find many companies that he is associated with (e.g. CIA HOLDINGS, INC., BRED WINNERS, LLC, etc.)
Interesting to say the least…
I wonder if the consumer is signing an agreement with the law firm and not directly with the non-profit. I would also be interested to find out what CBDC is paying for any referrals to LHDR and if they offer a split for any of those monthly fees.
They don’t do credit counseling. It is alleged they route all their credit counseling through CBDC in Florida. CBDC is a nonprofit credit counseling group.
Can we just laugh for a second, Daniel’s last name is BLUMKIN….freakin hilarious….ha ha.
How can a Law Firm be a credit counseling company? What do they do differently that another credit counseling company can’t do. I would like to find out the excessive fees that they will be charging for this option just because they are slapping a Law Firm name on the agreement.
Can we just laugh for a second, Daniel’s last name is BLUMKIN….freakin hilarious….ha ha.
How can a Law Firm be a credit counseling company? What do they do differently that another credit counseling company can’t do. I would like to find out the excessive fees that they will be charging for this option just because they are slapping a Law Firm name on the agreement.
They don’t do credit counseling. It is alleged they route all their credit counseling through CBDC in Florida. CBDC is a nonprofit credit counseling group.
I wonder if the consumer is signing an agreement with the law firm and not directly with the non-profit. I would also be interested to find out what CBDC is paying for any referrals to LHDR and if they offer a split for any of those monthly fees.
CBDC = CONSUMER AND BUSINESS DEBT COUNSELING SERVICES INCORPORATED (a not for profit incorporated in MA)
Issac Bobbe is listed as the President and Registered Agent for CBDC. Issac Bobbe was formerly the director of the now defunct ELIMIDEBT MANAGEMENT SYSTEMS, INC., which got into hot waters with the WV AG.
If you look up Issac Bobbe on the Florida’s corporate name search, you’ll find many companies that he is associated with (e.g. CIA HOLDINGS, INC., BRED WINNERS, LLC, etc.)
Interesting to say the least…
Vanderhoof is working for them now in Chicago and probably has a hand in that one. God help them if this is true.
i wonder if vanderhoof is going to make his management staff at LDHR write a redbox report.
ALLEGED GIVE ME A BREAK STEVE YOU HAVE NO CLUE ALL THESE ARTICLES ARE BASED OFF OF WHAT SOMEONE SAID AND NOT FACTS. DONT POST UNLESS YOU KNOW HOW IT WORKS BUT PEOPLE TAKE IT AND RUN WITH IT
So who then is the underlying nonprofit credit counseling provider?
Because they are greedy bastards who don’t give a damn.
How do they get to charge a “Legal Service Fee” and a “Debt Settlement Fee”???? If you are hiring a “lawyer” to settle your debt, why are these separate?
How do they get to charge a “Legal Service Fee” and a “Debt Settlement Fee”???? If you are hiring a “lawyer” to settle your debt, why are these separate?
Because they are greedy bastards who don’t give a damn.