LGR Consulting Told Me I Could Get a Loan to Pay Off My Debt and Then Switched Into a Debt Settlement Program With Pinnacle Law Group. – John

“Dear Steve,

I was contacted by a company LGR Consulting in NY. They were offering me a loan to specifically consolidate my credit card debt. For some odd reason I provided my credit card information. They did not approve they loan as I expected but did direct me to a law firm Pinnacle Law Group. They then wanted to do a “discloseure call” where I provided more information. I requested some reference material to review prior to the call but was told that they do not send it out until the actual call so that it can be reviewed in detail.

I was told that the preliminary numbers showed that I could be out of debt in 32 to 36 months with the actual payoff being 28% of the current outstanding balance. Also there would be a $10,000 fee that the firm would make and that it was factored into the numbers. Something did not add up so I calculated the numbers line by line. Still does not add up

My search was prompted by your review of Consult America.

Once I looked at the sites it was clear that LGR, Consult USA and Consult America were all the same. LGR and Consult USA were identical except the name change.

My worst mistake was to listen and stop payment to creditors trusting that the firm would be my buffer.

Have you come across LGR or Pinacle Law Group? Is this a scam that should be listed?


NYS Department of State
Division of Corporations
Entity Information
The information contained in this database is current through January 7, 2013.

Selected Entity Name: LGR CONSULTANTS, INC.
Selected Entity Status Information
Current Entity Name: LGR CONSULTANTS, INC.
DOS ID #: 1894240
Initial DOS Filing Date: FEBRUARY 13, 1995
County: NEW YORK
Jurisdiction: NEW YORK
Current Entity Status: ACTIVE

Selected Entity Address Information
DOS Process (Address to which DOS will mail process if accepted on behalf of the entity)


Dear John,

What you describe sounds like the same approach taken by another company, Rescue One. See Alleged Former Employee Speaks Out About Rescue One Financial Loan Offers.

From what you describe it sounds like you were baited with a loan and then sold an advance fee debt settlement program. Were you looking for a debt settlement program? Do you even have financial problems?

You’ve started to do some homework on the companies and I applaud your resourcefulness.

I would recommend that anyone considering using such a company should read the following fee guides.

  1. The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
  2. 10 Must Do Steps to Find the Best Credit Counseling or Debt Settlement Company for You
  3. How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off

Please post your responses and follow-up messages to me on this in the comments section below.


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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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33 thoughts on “LGR Consulting Told Me I Could Get a Loan to Pay Off My Debt and Then Switched Into a Debt Settlement Program With Pinnacle Law Group. – John”

  1. Lost my job in 2010 and during my unemployment got wiped out of my savings. Found new employment in 2011 but at a significant cut in pay. I got into $30,000 of credit card debt to stay afloat. I now have a new job in 2013 at a salary back near where I was in 2010 and now I would like to consolidate my debt into one loan and pay it off. I am current on all my payments and other than the large debt I am carrying, I have a very good credit history.

    I was recently contacted by mail by LGR Consultants with a debt consolidation loan offer. After an initial phone consultation, they said they could definitely help me get a consolidation loan. What got me suspicious is that they asked me to fax to them the detailed statement pages of my 2 credit card bills that I want to consolidate. I also got more suspicious when I saw there office address was in Brighton Beach, Brooklyn, NY. I then did a Google search and came upon your website where I found another inquiry about LGR posted. My questions are: Is it common practice to fax complete credit card statements to a company like this? I’ve never had to do anything like that before. Also, does anyone know if this company is legitimate? They are not listed by the Better Business Bureau

  2. We to were solicited to consolidate credit card debt. Then did not qualify but we could do the same program with about $14000 going to fees over the 3 1/2 years of payments. We were also told to stop making payments. I am trying to research this company and keep coming up short with LGR consultants in New york. Right now thinking a scam. Should I back out right now. They want to send someone over already on Sat to get a signature.

    • Hello Terry,
      I would certainly recommend you take a step back. 3.5 years is way to long to be in a debt settlement program. You are more likely to see the inside of a courtroom than successfully settle all your debt over that period of time.
      14,000 in fees is also a huge chunk of money that would likely be better spent resolving your debts.

      I would recommend you have a conversation with me before Saturday. It will save you quite a bit of money and aggravation.

      You can reach me at DamonDay.com

  3. Hi John, I received a letter from LGR Consulting a few months ago as well and I was actually approved for a loan through one of their brokered mortgage companies. They were able to refinance my home and include my credit card balances into the refinance so I only had to make one payment for my mortgage and previous outstanding debts. Fortunately for me I had enough equity in my property to cover all of my debts and refinance my home. I would recommend anyone to them, they were quick and efficient in expediting my loan.

    • James,

      What city do you live in?

      Who was the mortgage company?

      Who did you deal with at LGR Consultants?

      And are we talking about the same company:
      LGR Consultants
      3094 Brighton 5th St.
      Suite F4
      Brooklyn, NY 11235
      Phone: (888) 909-7212

      Isn’t that an apartment building?

          • Not sure what I skipped, but the address was in Long Island somewhere if memory serves, but hurricane Sandy forced them to relocate. All my business was conducted by phone.

          • I understand you’re trying to disparage this company for whatever benefit that earns you, but I assure you I was treated fairly, and I got a loan through them. Not exactly the rate I would’ve liked, but better than the other company that approved me.

          • How is asking for some clarity in any way disparaging a company?

            So if they moved, where is the company located now? Or do you even know who you are dealing with?

          • Actually the response from Damon Day was disparaging, not yours. I apologize. And yes, I certainly know who I dealt with. Like my 1st home mortgage and every credit card I have, I didn’t set foot in an office to conduct that measure of business. I’m speaking to you right now, like others who have sought your advice, and we have no idea where you are located, nor do we need to be face to face to heed your warnings about potential scams, etc.

          • LGR Consultants says they are located at:

            3094 Brighton 5th St.
            Suite F4
            Brooklyn, NY 11235

            You say they are located in some unknown place in Long Island.

            You said you got your new mortgage through RBI and Associates and I’m assuming you actually meant R.B.I. Associates in New York. A quick check shows they are a licensed mortgage broker in FL, NY, NJ.

            LGR Consultants says, “We are fully delegated to underwrite government and conventional loans and mak all credit decisions in-house.” But LGR Consultants is not listed as a licensed mortgage broker according to NMLS in any state.

            So is your recommendation that people in New Jersey should go to R.B.I. Associates instead of LGR Consultants?

          • They (LGR) consulted with me and successfully got me a mortgage with RBI Associates after going over my financials with me. I am recommending the process I went through to get my final result which is a new mortgage with my debt resolved. If that means I recommend RBI associates then so be it.

          • Which response was that?
            The one where they are trying to stuff Terry into a 3.5 year settlement program for 14,000 dollars or the one where they tried to bait and switch John for 10,000 dollars?

          • I find it curious that the only person on this forum that was asked a question(s) was the person defending the credibility of this institution. Who said anything about bait and switch!? I GOT A LOAN, so where’s the bait and switch!?

          • Well if you take the time to read the actual article, you will see that John was offered a loan and then “bait and switched” into a debt settlement program for several years with very high fees.

            My comment was, that this is an increasingly common tactic, which it is.

          • Im not sure how its a bait and switch if he didn’t qualify for a loan, and as he said They did not approve they loan as I expected.” Seems to me he knew he wasn’t qualified to get a loan. How he knew is the question. Did he try other institutions without success? Obviously he needed some assistance with his debts, like me, otherwise he wouldn’t have called.

          • He knew he didn’t qualify when the company said. I am so sorry but you don’t qualify for this offer that we sent you but you are in luck because we have this wonderful debt settlement program.

            If you are not sure how this is a bait and switch tactic let me try to break it down for you.

            We can offer you a great consolidation loan (Bait)

            Oh, you don’t qualify but we have this settlement program that can save you (Switch)

            Hopefully that clears it up.

            The real question is.
            1. How many people that call in actually get the loan that is being offered?

            You are the first person that I have seen to claim they received a loan.

          • First out of a whole 3 people that posted!? That’s not much research Damon. Perhaps you should re-read what he said…he ANTICIPATED not getting the loan BEFORE being denied. Am I wrong? I don’t understand the motivation to say this company did something negative to these folks. Perhaps you should’ve asked why they didn’t get approved, and perhaps say that at least they were offered an alternative rather than saying “sorry, no loan buddy, take a hike!”

          • This is not the only article about LGR on this website James.

            You answered your own question.

            My motivation is that the “alternative” was a high fee settlement program spread out over 3 to 4 years.

            They offered something the consumer really wanted “a consolidation loan” then they pitched a “bad” settlement program instead.

            For just a random consumer who got a loan, you seem to be dedicating an unusual amount of time to this.

          • Just as you seem to delegate a great amount of time NOT asking these “bloggers” legitimate questions about the process they endured, but immediately assume that the company is underhanded. Is it because they don’t pay you a fee to be one of the settlement companies you “like” on your website? What does it cost for you to like a company?

          • Helping consumers is what I do for a living. Which explains why I have devoted time to this discussion.

            But you don’t get paid to defend the tactics of this company, so why would you devote so much time to this in the middle of a week day?


          • Help them, or help yourself? Don’t try and turn this around as if I’m the one deceiving people! You offer people “advice” that is based on little to no factual information. And then profit from convincing them that bankruptcy is their only salvation.

          • I read about who you are Damon, you’ve got plenty of financial credentials in the educational department, but you’re just a bankruptcy attorneys ambulance chaser. TO ALL THOSE WHO READ THIS BLOG: Damon Day disparages ALL settlement companies, etc because he’s compensated by BANKRUPTCY ATTORNEYS!!! just like Steve, the debt out of debt guy! YOURE THE SCAMMERS!!! You will say whatever it takes to get someone out of settlement, and then refer them to a BK ATTORNEY!? SHAME ON BOTH OF YOU!!!

          • Oh ya, just a random consumer huh. Funny how none of my clients ever complain, just sales people that are trying to enroll people into programs that I easily can point out the flaws in.

            I encourage consumers to look at all options including bankruptcy if it might make sense before they make a decision. Do you think that is bad advice? Do you think consumers should not evaluate all of their options first?

          • It doesn’t look like you’ve taken a look at Damon’s website where he lists debt settlement companies he likes.

            While the getoutofdebt.org site does have a bankruptcy directory with some listings in it, neither the site nor myself receives any referral compensation if people elect to talk to those consumer bankruptcy attorneys.

            Additionally, the site also has an online debt calculator that gives the pros and cons of each solution, including debt settlement.

            So now that you’ve raged your fit against m, how about just answering my very simple questions you keep avoiding?

            Your avoiding them and attack against me personally makes you just appear to be a pissed off company representative who is trying to hide behind comments. Is that an incorrect assumption?

            In case you’ve lost track of the unanswered questions here they are again:

            1. LGR Consultants says, “We are fully delegated to underwrite government and conventional loans and make all credit decisions in-house.” But LGR Consultants is not listed as a licensed mortgage broker according to NMLS in any state.

            2. So is your recommendation that people in New Jersey should go to R.B.I. Associates instead of LGR Consultants?

            3. LGR Consultants says they are in Brooklyn and you say you live in NJ but you appear to be in Brooklyn as well. Do you work in Brooklyn near LGR Consultants?

            4. If you are really an average consumer that got great service then why are you getting so pissy and attacking?

          • This is a settlement company? I thought they were offering loans? As a random consumer, how do you know anything about what this company does or doesn’t do to other consumers whom you curiously refer to as “bloggers”

  4. Hey John,

    This seems to be the new popular tactic that more and more of these outfits are resorting to. It is shameful, but given the horrible programs they are selling people, I am certainly not surprised that they have not problem using bait and switch tactics.

    If you already stopped payments, you are going to need to take some steps to resolve the debts. Whether that be continue forward with a debt settlement strategy (not with a high fee debt settlement company though) or use the leverage that you already gained by missing the payments and negotiating interest rate reductions if that makes financial sense given your overall circumstances.

    I would recommend you schedule a phone consultation with me and after I review your situation in detail we can figure out how to best move forward from this point. Please review my site at DamonDay.com to learn about my service and why speaking with me is very different than talking to a sales person from a debt settlement company.


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