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Legal Helper Debt Resolution Lawsuits Picking Up Steam

A tipster (send in your tips here) sent me something about a Legal helpers Debt Resolution case I’ve already covered but it made me wonder if there were more cases that had been recently filed in U.S. district courts against Legal Helpers Debt Resolution. So I went and looked.

Maybe I had not seen the timeline before or put together the number of cases but when looking at the results I was surprised to see they do appear to be picking up steam.

One case, Sanchez v Legal Helpers Debt Resolution, filed in Virginia a few weeks ago was just settled and will be dismissed. – Source. That was fast.

So far in 2011 they have been named defendants in five cases in U.S. district courts. Now that may not seem like a lot but for all of last year they were only named defendants in three cases.

This does not even include the state and local cases or the case by the Illinois Attorney General.

I certainly know Legal Helpers Debt Resolution has felt picked on by this site. We even have one commenter that goes by different names trying to warn people about posting comments and is defensive about how many times Legal Helpers Debt Resolution may have been mentioned. But here’s the bottom line, Legal Helpers Debt Resolution gets talked about more simply because they are in the news more.

And the talk about Legal Helpers Debt Resolution does not occur just here. It occurs everywhere and apparently it has become the focus of more chatter in the courts as well.

Sincerely,


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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.
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See also  Legal Helpers Goes Out With a Whimper and Likely Bankruptcy.

32 thoughts on “Legal Helper Debt Resolution Lawsuits Picking Up Steam”

  1. LHDR won’t be around for more than a year. The main vulnerability of the LHDR ponzi scheme is that all the troops are depending on one or two greedy lawyers at the very top of the pyramid. As soon as Macey and his pals take their money and run (or get disbarred), say sianara to all the underling minions that thought they were cruising in first class on the LHDR Titanic. They’ll be puking their own vermin on the day that news hits. Vindication Day!

    Reply
  2. TBTF? You are kidding right?

    Mim’s, are you posting in some weird revers psychology effort? Its the only way any of what you say in your multi posts would make sense.

    Bulb

    Reply
  3. Hey there mim’s,
    Does your mom know you post here? What I mean to say is that you are not doing LHDR any favors. 20k clients just makes their questionable practices and partners more of a target for private action and regulator deterrent goals.

    Keep the hits coming, by all means.

    Bulb

    Reply
  4. Yea, I know for a fact that alot of clients get help and the few complaints are from a small percentage of clients…. I wouldnt back them if I didnt see there work first hand. Please tell me why go to a company thats small and that is easy to dissappear in the shadows… Please tell me where LHDR is going NOWWHERE have you ever heard to big to fail.

    Reply
  5. Look how cocky LHDR representative is acting? Such a nice display of arrogance. There is there is plenty of reputable debt settlement company with a clean track record, has no lawsuits pending and yet you are on here defending a company just because you work for them with a list of complaints and lawsuits, don’t you have any shame? Do you really think you are working at a respectable and reputable company that is really helping the consumers out or you just blind and ignorant to believe that what you are doing justify the harm you are causing to the consumers by not addressing their concerns and jump onto these blogs to defend your company for wrong doings when its clear there are major lawsuit and class actions pending against your company?

    Reply
  6. The big question is how long is it going to take. They might be able to fend off problems for a COUPLE YEARS while they continue to do what they are doing???

    Reply
  7. LoL Steve yea its picking up steam LOL… Maybe there more cases hahahah steve lhdr has over 20,000 clients that doesnt even make a dent.

    Reply
  8. LoL Steve yea its picking up steam LOL… Maybe there more cases hahahah steve lhdr has over 20,000 clients that doesnt even make a dent.

    Reply
    • Look how cocky LHDR representative is acting? Such a nice display of arrogance. There is there is plenty of reputable debt settlement company with a clean track record, has no lawsuits pending and yet you are on here defending a company just because you work for them with a list of complaints and lawsuits, don’t you have any shame? Do you really think you are working at a respectable and reputable company that is really helping the consumers out or you just blind and ignorant to believe that what you are doing justify the harm you are causing to the consumers by not addressing their concerns and jump onto these blogs to defend your company for wrong doings when its clear there are major lawsuit and class actions pending against your company?

      Reply
      • Yea, I know for a fact that alot of clients get help and the few complaints are from a small percentage of clients…. I wouldnt back them if I didnt see there work first hand. Please tell me why go to a company thats small and that is easy to dissappear in the shadows… Please tell me where LHDR is going NOWWHERE have you ever heard to big to fail.

        Reply
        • TBTF? You are kidding right?

          Mim’s, are you posting in some weird revers psychology effort? Its the only way any of what you say in your multi posts would make sense.

          Bulb

          Reply
        • LHDR won’t be around for more than a year. The main vulnerability of the LHDR ponzi scheme is that all the troops are depending on one or two greedy lawyers at the very top of the pyramid. As soon as Macey and his pals take their money and run (or get disbarred), say sianara to all the underling minions that thought they were cruising in first class on the LHDR Titanic. They’ll be puking their own vermin on the day that news hits. Vindication Day!

          Reply
    • Hey there mim’s,
      Does your mom know you post here? What I mean to say is that you are not doing LHDR any favors. 20k clients just makes their questionable practices and partners more of a target for private action and regulator deterrent goals.

      Keep the hits coming, by all means.

      Bulb

      Reply
  9. Make no mistake. There is a civil war in the debt settlement industry. The performance-based companies are in the process of teaming up to attack the crooked Legal Models. LHDR (Legal Helpers Debt Resolution) is keeping a lot of the scum-bucket, dirt bag, nim-wits in this business. It’s bad for the industry and its real bad for the consumer. When their servicing companies start going out of business, its going to be a real trainwreck, and the FTC knows it, and is being strategic in its resolve to squash it. The very fact that LHDR Companies have to pay into a fund reserve for regulatory problems is sickening, and exactly what will keep the regulators banging on LHDR’s door until they are literally insolvent. There are a lot of people that are very happy that the states, the regulators, consumers, the industry, and competitors are all standing up and battling LHDR. It will be a day of vindication when those LHDR partners have their licenses suspended! RIP…

    Reply
  10. Make no mistake. There is a civil war in the debt settlement industry. The performance-based companies are in the process of teaming up to attack the crooked Legal Models. LHDR (Legal Helpers Debt Resolution) is keeping a lot of the scum-bucket, dirt bag, nim-wits in this business. It’s bad for the industry and its real bad for the consumer. When their servicing companies start going out of business, its going to be a real trainwreck, and the FTC knows it, and is being strategic in its resolve to squash it. The very fact that LHDR Companies have to pay into a fund reserve for regulatory problems is sickening, and exactly what will keep the regulators banging on LHDR’s door until they are literally insolvent. There are a lot of people that are very happy that the states, the regulators, consumers, the industry, and competitors are all standing up and battling LHDR. It will be a day of vindication when those LHDR partners have their licenses suspended! RIP…

    Reply
    • The big question is how long is it going to take. They might be able to fend off problems for a COUPLE YEARS while they continue to do what they are doing???

      Reply
  11. LHDR would not be able to run at the rate they do w/o the model they run. Its all affiliate built- NO DIFFERENT than the previous model that was banned 10-27. The pay 70%-80% of their fee base to the sales companies. That’s why they don’t care about complaints- just like they didnt before- it’s all volume.

    Reply
  12. I’d like to respond to your statement but I need to see the context from which it came. I can’t find anything like that on a search of the site. Just post the URL you are reading it on.

    Reply
  13. I agree with you.

    The advantage in the performance fee model is an unhappy consumer can terminate your services and is more willing to listen to what you may have to say/educate them about a particular situation without the fear of financial loss.

    It’s a lot harder for a consumer to not feel bad or for a regulator to not look unfavorably on a company that has already collected a fee but not provided the service, for whatever reason.

    If you have not read it recently, the refund process the reader referred to says the first thing a consumer should do it to reach out to their company and discuss the situation in hopes the matter can be resolved.

    It seems the problem with the no refund approach is that if the argument is the advanced fees were for all the work up-front and not a successful negotiation that the negotiation or settling of the debt has little value. If the advanced fee is to cover the settlement of the debt but the settlement was not obtained, then a refund would be the smart thing to do.

    Reply
  14. ** Let me add this, the response was actually a tad off topic as I believe the LHDR organizations are a black mark for the industry.

    Why? Because since there are so many fees early on it doesn’t help the client save money for potential aggressive accounts.

    I got nothing against a company charging whatever amount they want and a willing and able buyer agreeing. Example, if LHDR wants to charge “25%” after you include all their other fees…. no problem with me… except that it’s being collected way too soon (and not sure, are they disclosing this clearly to clients?).

    If they collected most of these fees on a performance based, these complaints would be so much lower you probably wouldn’t here about them.

    Reply
  15. Not sure exactly where you’re going with that… but, let me add this.

    It is tough being a reputable, honest, client orientated debt settlement company. There are battles being fought on every ground and in many cases, we’re in lose-lose situations.

    Here’s an example:
    1) Client enrolls into the program. They have some “easy” creditors and some difficult creditors. In the clients interest, we wait to settle the larger more aggressive creditor (discover for example). We do our best to explain this to the client and why they won’t see settlements sooner….

    What happens? Client calls back upset because they’ve “paid thousands of dollars and no results”… the creditors say they won’t work with us… they heard their going to be sued… etc, etc. OR–> We settle the “easy” account to help encourage the client as we realize the client is anxious. Then, as people have mentioned here, we are just picking the easy accounts to settle

    What’s at risk? Everything… Our profit, the clients success, reputation. This isn’t every case, but it’s the bulk of the challenges we face on a daily basis…. aside from having to figure new ways to settle debt as these creditors get “smarter” to settlement companies.

    We have to spend a lot of resources on service, sometimes for than actually settling the debt. It’s a tough and delicate process and we’ve been amping up our education of the program prior to enrollment, but we’re finding it’s still a challenge when they listen to collectors and hear horror stories here.

    Reply
  16. This site has come along way from its early days, but in some ways the content remains the same.

    In December of 2007 Steve wrote:

    “A BIT SECRETIVE FOR A REASON” –
    “I put our name and logo on this page but we are taking huge risks just being this open and honest about the realities of debt in America. I don’t want to sound like a conspiracy theorist but the truth is the last thing banks and NOT-FOR-PROFIT CREDIT COUNSELING GROUPS [emphasis added] want you to know”. …

    Reply
  17. This site has come along way from its early days, but in some ways the content remains the same.

    In December of 2007 Steve wrote:

    “A BIT SECRETIVE FOR A REASON” –
    “I put our name and logo on this page but we are taking huge risks just being this open and honest about the realities of debt in America. I don’t want to sound like a conspiracy theorist but the truth is the last thing banks and NOT-FOR-PROFIT CREDIT COUNSELING GROUPS [emphasis added] want you to know”. …

    Reply
    • Not sure exactly where you’re going with that… but, let me add this.

      It is tough being a reputable, honest, client orientated debt settlement company. There are battles being fought on every ground and in many cases, we’re in lose-lose situations.

      Here’s an example:
      1) Client enrolls into the program. They have some “easy” creditors and some difficult creditors. In the clients interest, we wait to settle the larger more aggressive creditor (discover for example). We do our best to explain this to the client and why they won’t see settlements sooner….

      What happens? Client calls back upset because they’ve “paid thousands of dollars and no results”… the creditors say they won’t work with us… they heard their going to be sued… etc, etc. OR–> We settle the “easy” account to help encourage the client as we realize the client is anxious. Then, as people have mentioned here, we are just picking the easy accounts to settle

      What’s at risk? Everything… Our profit, the clients success, reputation. This isn’t every case, but it’s the bulk of the challenges we face on a daily basis…. aside from having to figure new ways to settle debt as these creditors get “smarter” to settlement companies.

      We have to spend a lot of resources on service, sometimes for than actually settling the debt. It’s a tough and delicate process and we’ve been amping up our education of the program prior to enrollment, but we’re finding it’s still a challenge when they listen to collectors and hear horror stories here.

      Reply
      • ** Let me add this, the response was actually a tad off topic as I believe the LHDR organizations are a black mark for the industry.

        Why? Because since there are so many fees early on it doesn’t help the client save money for potential aggressive accounts.

        I got nothing against a company charging whatever amount they want and a willing and able buyer agreeing. Example, if LHDR wants to charge “25%” after you include all their other fees…. no problem with me… except that it’s being collected way too soon (and not sure, are they disclosing this clearly to clients?).

        If they collected most of these fees on a performance based, these complaints would be so much lower you probably wouldn’t here about them.

        Reply
        • LHDR would not be able to run at the rate they do w/o the model they run. Its all affiliate built- NO DIFFERENT than the previous model that was banned 10-27. The pay 70%-80% of their fee base to the sales companies. That’s why they don’t care about complaints- just like they didnt before- it’s all volume.

          Reply
      • I agree with you.

        The advantage in the performance fee model is an unhappy consumer can terminate your services and is more willing to listen to what you may have to say/educate them about a particular situation without the fear of financial loss.

        It’s a lot harder for a consumer to not feel bad or for a regulator to not look unfavorably on a company that has already collected a fee but not provided the service, for whatever reason.

        If you have not read it recently, the refund process the reader referred to says the first thing a consumer should do it to reach out to their company and discuss the situation in hopes the matter can be resolved.

        It seems the problem with the no refund approach is that if the argument is the advanced fees were for all the work up-front and not a successful negotiation that the negotiation or settling of the debt has little value. If the advanced fee is to cover the settlement of the debt but the settlement was not obtained, then a refund would be the smart thing to do.

        Reply

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