Quick Answer: Global Client Solutions faces a federal class action lawsuit alleging it operated as an unlicensed debt settlement provider in Illinois, where one client paid $1,582 in fees on $4,017 collected. The lawsuit claims the company violated Illinois law by charging excessive fees beyond the allowed $50 enrollment fee maximum.
Yesterday a class action suit, Karen Manczak v. Global Client Solutions and Global Holdings was moved from State Court to Federal Court. The suit was originally filed in September, 2011. – Source
The suit alleges Global Client Solutions (“GCS”) is a debt settlement service provider and falls under the Illinois definition of “debt settlement provider” and “debt settlement services.”
The claim is made that the State of Washington action is applicable to Illinois as well since the statutes are similar and the Washington Supreme Court held that Global Client Solutions is a debt settlement provider under the Washington Debt Adjusting Act.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
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The complaint states that the Plaintiff had a GCS Special Purpose Account from September 2010 to August 2011. During that time GCS collected and paid fees of $1,582 out of $4,017 collected. In Illinois a debt settlement provider “shall not charge or receive from a consumer any enrollment fee, set up fee, up front fee of any kind, or any maintenance fee, except for a one-time enrollment fee of no more than $50.” – Source
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This suit was filed by:
Kenneth DucDuong, Esq.
KMD Law Office
35 E. Wacker Drive
9th Floor
Chicago, IL 60601
Global Client Solutions is represented by Richard Epstein and Rebecca Bratter with Greenspoon Marder and Timothy Hudson of Tabet, DiVito & Rothstein.
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Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
PS: So, Birnbaum gets paid to set them all up in their practices, then gets their money a second time by representing them in court? Oh, yeah and paid again as he takes exhorbitant fees from the companies with the AFCC as well? Oh, and of course gets paid again throughout and prior to their Bankruptcy filings when they can’t make it through like with ESP. Wow. How do you get that job? Like a McDonald’s straw (the big ones), just sucking the cash out of the industry
Not to mention that Robby is Plaintiff’s Counsel in ILL for LHDR basically suing ILL AG for pretty much the same thing DucDong is suing his client for here. Guess as an attorney he doesn’t have to take a stance?
Kenneth DucDuong? Is he related to the famous “Long DucDuong” from 16 candles? Sorry, couldn’t resist.
I was waiting for that. What took you so long?