Legal Helpers Apparently Getting into Credit Counseling and Tax Settlement

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
Helpsettle.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Helpsettle.info – AMTurnkey, Inc, Joe Sederholm, jsederholm@amturnkey.com
Helpsettle.net – Daniel Blumkin, dblum@timberlinecapitalusa.com
Manhattanshoppingparty.com – Manhattan Shopping Party, Tami Baruch, Tam@ManhattanShoppingParty.com
Sfnewyork.com – Daniel Blumkin, dblum@timberlinecapitalusa.com
Timberlinecapitalusa.com – Timberline Capital, LLC, Ryan Sasson, sasson531@aol.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

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

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?


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.


YouTube player


Damon Day - Pro Debt Coach

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