The Scott Law Group out of Spokane has filed a class action lawsuit against Solid Ground Financial, David Smith, Scott Haick, Rubin McEachron, JIO Reserves, and Stephen Detta.
The claim is that the Defendants engaged in a uniform conspiratorial and predatory scheme to enrich themselves at the expense of financially strapped Washington families by violating Washington statutes designed to protect consumers from wrongful debt adjuster business practices.
The facts presented in the complaint are:
A large number of working Washington families are struggling to pay their credit card debts because of economic forces largely beyond their control.
Washington has adopted statutes to protect Washington citizens from predatory, unfair, and deceptive business activities by businesses that purport to assist Washington residents in managing, settling, and/or paying their debts.
Defendants are engaged in the business of debt adjusting for compensation in that they settle, adjust, prorate, and/or manage the indebtedness of Washington debtors and/or
receive funds for the purpose of distributing funds among creditors in payment or partial
payment of obligations of Washington debtors.
Defendants’ debt adjusting activities, as more fully detailed below, are carried out in concert, pursuant to a common business design and agreements amongst themselves.
Defendants’ debt adjusting activities, as more fully detailed below, constitute a common business enterprise such that each Defendant is the principal and agent of the other and such that each is jointly and severally liable for the misconduct of the other.
Defendants Smith, Haick, and McEachron designed and/or carried out the illegal business enterprise, as conducted through, without limitation, Solid Ground and its affiliates, as
described more fully throughout this Complaint.
Defendant Detata designed and/or carried out the illegal business enterprise, as conducted through, without limitation, JIO and its affiliates, as described more fully throughout this Complaint.
Solid Ground holds itself out to the public as engaged in managing, counseling,
settling, adjusting, prorating, and/or liquidating the indebtedness of consumer debtors and/or receiving funds from consumer debtors for the purpose of distributing those funds among specific creditors. It engages in these activities for compensation and does so acting in concert with JIO.
Solid Ground, directly and through its agents, holds itself out to the public as engaged in debt adjusting through unsolicited phone calls, spam email, junk mail, Internet solicitations, television advertising, and radio advertising.
Solid Ground promotes its debt adjusting program using standardized promotional materials. The materials include a standardized Client Service Agreement that identified “Solid Ground Financial” as the contracting party performing the subject debt adjusting services.
The subject debt adjusting program promoted by Solid Ground is, in fact, carried out through the business activities of JIO and potentially others.
Pursuant to agreements among Defendants, Solid Ground acts as a “front-end” debt adjusting company that holds itself out to consumers as engaged in debt adjusting. In fact, Solid Ground is engaged in soliciting debt adjusting business for JIO and potentially others.
JIO, acting in concert with Solid Ground and pursuant to agreements amongst themselves, performs the debt adjusting services promoted by Solid Ground.
JIO, in this regard, is engaged in the business of managing, counseling, settling,
adjusting, prorating, or liquidating the indebtedness of debtors and doing so for compensation. It carries out these activities in concert with Solid Ground.
Based on information and belief, Solid Ground had neither the capacity nor intention of performing the debt negotiation activities involved in the debt adjusting program it
Defendants’ solicitation materials sent to consumers include a standardized Client Service Agreement and Authorization Agreement. – Source
The attorneys and firm filing the suit were:
DARRELL W. SCOTT, WSBA #20241
MATTHEW J. ZUCHETTO, WSBA #33404
926 W. Sprague Avenue, Suite 680
Spokane, Washington 99201
Telephone: (509) 455-3966
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