Back in August of 2010 the State of West Virgnia went after Robert Lock, Phillip Manger and Credit Card Defense Network (CCDN).
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. – Source
On March 9, 2011 an order granting summary judgment and imposing a permanent injunction was granted. Under this agreement, the defendants, Robert Lock, Phillip Manger and CCDN, are not allowed to do business in the state and can’t collect any money from West Virginia residents.
It appears that the defense offered up by the defendants was no defense.
The CCDN approach for consumers to deal with their debt was an invalidation, FDCPA violations or novation approach.
The defendants were ordered to pay back the $21,985 they took for fees from residents, plus $130,000 in civil penalties. – Source
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