Debt Relief Industry Sued or Sanctioned

Connecticut Goes After More Debt Relief Companies

New administrative actions have just been made public against more debt relief companies. Connecticut does not mess around.

The new entires made public include:

Alliance Mitigation Group

The company did not respond to administrative notices sent by the Consumer Credit Division of the Department of Banking. The company was hit with $11,795 in fines and is barred from Connecticut. – Source

Home Credit Law Center, United Processing Center

The State alleges:

  1. Home Credit is a purported law firm with an office at 9854 National Boulevard, Suite 242, Los Angeles, California.
  2. Brian R. Linnekens is a California attorney and President of Home Credit.
  3. United Processing is a California corporation with an office at 14252 Culver Drive # 520, Irvine, California.
  4. On March 4, 2011, a Connecticut resident received an e-mail from a representative of Consumer Mortgage Counseling Services of America (“CMCSOA”) describing the debt negotiation services offered by CMCSOA and Home Credit.
  5. On March 8, 2011, the Connecticut resident and his wife (“Connecticut residents”) received another email from CMCSOA which stated, in part, that “as I said on the voicemail I left you, all the info you requested on HCLC is in the contract. Mr. Linnekens personally supervises all cases, but there is no negotiator assigned to your file until you formally become a client. Please get the contract and supporting docs back to me as soon as possible, and then we’ll hit the ground running”. Included with the e-mail was an application, which included a document entitled “Limited Power of Attorney & Borrower Authorization”, which would allow a borrower to appoint Home Credit and United Processing as the borrower’s true and lawful attorneys-in-fact to, among other things, “contact the above referenced lender regarding my existing mortgage loan for the purpose of negotiating a workout agreement or modification”.
  6. On March 11, 2011, the Connecticut residents, while physically present in this state, entered into an agreement with Home Credit for debt negotiation services. The Purpose provision of the agreement states that “[c]lient hereby retains . . . [Home Credit] and its affiliates and Consultants to prepare a plan for helping the Client acquire and analyze proposed solutions that may help the Client improve their negotiations with their lender”.
  7. On July 15, 2011, one of the Connecticut residents filed a complaint with the Commissioner in which the Connecticut resident stated that:

    The company after receiving my information said they could get me into a loan modification program. They said that they could work with my mortgage company or a bank to get my monthly payments reduced. The cost was $4100.00 which was taken out in three installments from my wife’s checking account. They also told me not to talk to any staff from the mortgage company that they will take care of that.

    The payment of $4,100 for such debt negotiation services was in excess of amounts that debt negotiators may charge for services pursuant to the Schedule of Maximum Fees established by the Commissioner on or about October 1, 2009.

  8. At no time relevant hereto were Respondents licensed to engage or offer to engage in debt negotiation in this state, nor did Respondents qualify for an exemption from licensure.
  9. At no time relevant hereto did Respondents perform or successfully complete the services specified in the agreement.
  10. By letter dated October 3, 2011, Home Credit admitted that it had other Connecticut clients, and claims that it is not a debt negotiator.

A further hearing will be held on this matter and they have been issued a cease & desist notice in the meantime. – Source

Michael Lupolover, Law Offices of Michael Lupolover, Premier Consultant Group, Premier Debt Solvers, Premier Debt Pro Servicing

According to State documents, Lupolover is also affiliated as a control person of the following entities: Creditors Relief LLC; Premier Debt Solutions Limited Liability Company; Premier Debt Solvers; Premier Debt Pro; Law Offices; Consumer Law Advocates PC; Debt Solutions Limited Liability Company; and Lupolover & Canty Professional Corporation.

The Commissioner alleges that from at least October 2009 to July 2011, Respondents were engaged in unlicensed debt negotiation activity in Connecticut, in violation of Section 36a-671(b) of the Connecticut General Statutes.

As of July 20, 2011, Respondents ceased and desisted from engaging or offering to engage in debt negotiation in this state.

Pursuant to a settlement agreement entered into on July 20, 2011, with the Office of Chief Disciplinary Counsel of the State of Connecticut Judicial Branch, Lupolover and Law Offices herein represent that they have either refunded or transferred to a duly licensed or exempt debt negotiator all fees paid by Connecticut clients of Law Offices for debt negotiation services. Such refunded fees totaled approximately $166,539.

Lupolover and Premier Debt Solvers herein represent that they have refunded all fees paid by Connecticut clients of Premier Debt Solvers for debt negotiation services. Such fees totaled approximately $11,741.

Lupolover and Premier Debt Pro herein represent that they have refunded all fees paid by Connecticut clients of Premier Debt Pro for debt negotiation services. Such fees totaled approximately $2,857.

A consent order was entered into on April 26, 2012. The entities must stop engaging or offering to engage in unlicensed debt negotiation activity in Connecticut and pay a $3,000 penalty. – Source


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See also  Let's Play "Do They Comply" With Premier Debt Solvers

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Steve Rhode

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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