Business Models Debt Relief Industry

Debt Relief Cottage Industry Springs Up. Fee Recovery by the Center for Legal Justice.

In the interest of disclosure I have had conversations recently with Damon Day, an independent debt coach, that does provide a fee only on recovery service for consumer paid fees for debt relief service not delivered.

I’ve also spoke with others previously inside the debt settlement arena who are considering launching national services to recover fees paid specifically for advanced fee debt settlement where the services were not provided.

But here is a new approach from the Center for Legal Justice. It appears they’ve launched a whole recovery section of their website and want to go after fees paid for time share sales, debt settlement, credit counseling and loan modification services.

I suspect we will see similar efforts expanding as well.

Sincerly,
Steve

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READ  The Center for Legal Justice - Scam, Complaint, Review, or Praise?



About the author

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.

12 Comments

  • You can read the suit here.

    I’ll give them a prop for taking action but what is not apparently clear from the suit is that The Center for Legal Justice is the plaintiff but are they suing on behalf of someone else or have they been injured by the timeshare reseller they sued.

    Rather than an action to defend consumers on page 7 we see the issue is really that The Center for Legal Justice hired one of the defendants and gave them access to their client database which they then accuse Vera Eagan of stealing.

    This appears to be primarily a loss of revenue suit by The Center for Legal Justice from data stolen by one of their employees, than an action to defend consumers.

    The Center for Legal Justice is seeking damages for unfair trade practices, tortuous interference with a contractual relationship and civil conspiracy.

    • You can read the suit here.

      I’ll give them a prop for taking action but what is not apparently clear from the suit is that The Center for Legal Justice is the plaintiff but are they suing on behalf of someone else or have they been injured by the timeshare reseller they sued.

      Rather than an action to defend consumers on page 7 we see the issue is really that The Center for Legal Justice hired one of the defendants and gave them access to their client database which they then accuse Vera Eagan of stealing.

      This appears to be primarily a loss of revenue suit by The Center for Legal Justice from data stolen by one of their employees, than an action to defend consumers.

      The Center for Legal Justice is seeking damages for unfair trade practices, tortuous interference with a contractual relationship and civil conspiracy.

      • This suit is a joke as is the so called “lawyer referral Services”.  This company/scam is run by Larry Diadato (Elimidebt, Boca Raton, FL).  Larry partnered up with a law firm called Esquire litigation and they’re
        doing the Hess Kennedy type disputes and enrolling hundreds of consumers a
        month.  Major attorney fee splitting
        going on over there.  

        So let me clarify….Larry has been running an upfront fee scam for years and as soon as TSR changes were made he switched to the attorney model AND this same attorney he partnered up with is going after companies that charged upfront fees.  

        The kicker is that he first approaches the settlement company to become an affiliate of the Center for Legal Justice and if they decline he sues them.  Larry has graduated from a street thug collector for the mob to legal extortion.  Same thug, different strong-arm tactics.  

      • This suit is a joke as is the so called “lawyer referral Services”.  This company/scam is run by Larry Diadato (Elimidebt, Boca Raton, FL).  Larry partnered up with a law firm called Esquire litigation and they’re
        doing the Hess Kennedy type disputes and enrolling hundreds of consumers a
        month.  Major attorney fee splitting
        going on over there.  

        So let me clarify….Larry has been running an upfront fee scam for years and as soon as TSR changes were made he switched to the attorney model AND this same attorney he partnered up with is going after companies that charged upfront fees.  

        The kicker is that he first approaches the settlement company to become an affiliate of the Center for Legal Justice and if they decline he sues them.  Larry has graduated from a street thug collector for the mob to legal extortion.  Same thug, different strong-arm tactics.  

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