Debt Relief Industry Sued or Sanctioned

Minnesota Tells Legal Helpers and Friends to Get the F Out

Written by Steve Rhode

The State of Minnesota has issued notice to Legal Helpers Debt Resolution and some affiliates that they are not welcome in the state and calls them a sham.

“Minnesota consumers struggling with debt asked Legal Helpers for assistance, but instead they reported that they were scammed out of money they couldn’t afford to lose. These consumers were trying to pull themselves out of a tough situation and earn back their financial independence,” said Commissioner Mike Rothman. “I will not tolerate any businesses that simply prey upon our consumers who are trying to make ends meet for a better future.”

The investigation by the Minnesota Department of Commerce revealed that Legal Helpers allegedly purported to Minnesota consumers that its debt settlement services were being handled directly by its staff and attorneys. Instead, the work was allegedly shopped out to the following list of unlicensed debt settlement service providers to be handled by non-attorneys: CDS Client Services, Inc. (“CDS”), Lynch Financial Solutions, Inc. (“Lynch”), Legal Services Support Group, LLC (“LSSG”), JEM Group, Inc. (“JEM”) American Debt Services (“ADS”), and Eclipse Financial Services, Inc. (“Eclipse”).

“Sham companies cannot attempt to hide behind an alleged law firm status,” said Commissioner Rothman. “Companies with the sole purpose of defrauding Minnesota consumers should be on notice – I will stop them and close them down.”

The enforcement order, signed in August, cites nine cases in which Minnesotans paid Legal Helpers to help settle debts, without any progress being made. In one case from 2011, a couple paid more than $9,000 for help but received none and continued to receive notices from creditors of actions against them, including garnished wages.

The cease-and desist order also names James Agosto, a Minnesota lawyer it lists as an affiliate of the company with the same address as the company’s Roseville office. – Source


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About the author

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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