A May, 2012 class action lawsuit filed by Theresa Driscoll and others has just been moved to Federal court. The case was filed against Freedom Debt Relief, Freedom Financial Network, Debtmerica, Global Client Solutions, Andrew Houser, and Bradford Stroh.
The suit alleges that despite promises of reducing consumers’ debt by 40 to 60 percent and the help consumer to become debt free in as little as 24-36 months the results were something other. The suit states, “Defendants were typically unable to negotiate any reduction in the amount owed, much less a substantial reduction, and were unable to leave customers debt-free in 24 to 36 months. Instead the consumers’ failure to make payments or respond to their creditors’ demands only served to increase the amount of debt owed due to late fees and interest charges. Defendants’ DSP simply and outrageously redirected consumers’ scarce financial resources from payment of their debts to payment of Defendants’ exorbitant and unearned monthly fees.”
The case is an example of how others associated with the Defendants can get named and dragged in to the case. As the case states, “On or about March 24, 2010, Sandy Clark, identified as an “IAPDA Certified Debt Specialist” and an employee and/or authorized agent of Defendants, e-mailed Plaintiff back and told her that Debtmerica could “dramatically” lower Plaintiff’s unsecured debt and could help Plaintiff “become debt free in as little as 24-36 months.”
The program agent latter told the Plaintiff her $14,244 debt would be cut down to $9,805.
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