Dora Smith v. Legal Helpers Debt Resolution and Global Client Solutions, Macey, Aleman, Hyslip & Searns
The case states:
“On March 17, 2010, Plaintiff and Defendant Legal Helpers Debt Resolution entered into an agreement by which that Defendant would “review [Plaintiff’s] current unsecured debt burden and thereafter negotiate and attempt to enter into settlements with creditors of this [Plaintiff] in an effort to modify and/or restructure [Plaintiff’s] unsecured debt.”
The contract Dora Smith signed is said to have contact statements that LHDR would subcontract out certain tasks and one of those contractors was Global Client Solutions.
It is stated that Smith paid LHDR an initial fee of $500 and then to pay a monthly “maintenance fee” of $50 per month. She was also to pay CDS Client Services, 15% of the total scheduled debt.
Smith was instructed to inform debt collectors she is “currently being represented by an attorney regarding payment on this account” but there do not appear to be any New Jersey licensed attorneys associated with LHDR.
Global Client Solutions is dragged in to this case because they were a payment facilitator and it appears the fees for 3rd party services, such as Global Client Solutions, were not included in the calculations presented. It seems to be a problem we’ve discussed here before about Global Client Solutions allegedly not knowing if the companies they were providing services for were indeed complaint in the states they provided services.
The suit states the the services provided did not comply with debt relief agency restrictions of the U.S. Bankruptcy Code and constituted “bankruptcy advice” as defined at 11 U.S.C. 101 4(A).
LHDR is charged with a violation of the New Jersey Consumer Fraud Act since it was stated “Defendants have engaged in a joint enterprise to engage in actions in violation of New Jersey law by means of the deceptive and unconscionable business practice.”
Defendants are charged with violating the New Jersey Debt Adjuster Act since LHDR appears to never have been licensed in New Jersey, they would not be entitled to an exemption as “an attorney-at-law of this State.” – Source
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