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Question From James About an Allegro Law Client Refund – Get Out of Debt Podcast

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Caller Question

James called with a very unusual situation. Allegro Law was a debt settlement and debt management company that was in the state of Alabama and was closed down. James had a check from them that was issued before they were closed, and it bounced. Ouch! He now wants his money back because he had to make good on the bounced check.

Listen to the Answer

James,

Here is the link I mentioned in the answer. AllegroLawReceivership.com it is not AllegroLawReceivership.org that I’ve seen some people searching for.

Steve

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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.

26 Comments

  • Steve,

    I recently attemped to contact attornies about my specific situation via the following email. No one has gotten back to me, and I feel as though I am basically going to be screwed out of ever getting anything back. Perhaps I just am contacting the wrong person about it but I have no idea who to contact. Any insight for me? Here is the email.


    “I am unsure of who to turn to in my specific situation and hope that you might be able and even willing to help me figure out what steps I need to be taking. Since I am very unsure whether you even could help me, I will explain my situation to you and hope that you reply with at least a point in the correct direction.

    Sometime in the last few years I signed up with a debt consolidation company because I started to notice that I was finding it difficult to get rid of my credit card debt. I searched on line for an answer and found a law-firm out of Alabama that interested me. The company was Allegro Law LLC, and after talking to someone there I soon enrolled into their debt management program.

    In this program, Allegro Law basically took down the information of the creditors I chose to bring into the program, contacted them to try to lower the interest rates, then withdrew an amount of money from my checking account monthly (including a fee for themselves), which they then paid out to all the creditors enrolled in the program. The concept was simple enough. Lower the interest rates, pay the minimum payment, and once the minimum payment begins to drop due to the drop in principal, continue to pay the original minimum payment.

    Everything seemed to be working out just fine until about a week ago when I received a statement from one of the many credit card companies that Allegro Law was now in charge of. The statement said that my monthly payment was past due, and that I needed to pay it immediately. I assumed maybe that the statement was simply printed before they had received the usual payment from Allegro Law but I called them and they confirmed that they had not received any payment.

    At that point I became worried and angry, and called the the number that I had for them (1 866 648 7878). I had called in the past and usually sat on hold and then talked to a representative but this time all i got was a recorded message.

    After searching online I came across a few web pages bringing me up to speed with the situation.

    http://allegrolawreceivership.com/news.asp

    I checked my bank account and the last time a payment was taken out for Allegro was on March 23rd. I logged onto Allegro’s website and according to that they paid money out to my creditors on March 29th. According to my creditors, The last payment they received was before March 23rd when Allegro Law took out their last payment.

    All I really understood from the bankruptcy statement on the above website and on the telephone message was, “There will be no further debt management payments nor debt settlement action taken. All customers of Allegro Law, LLC should have all draws from their accounts stopped and no further payments should be sent.’

    Obviously Allegro took a withdrawal from my account (the amount was $285.00) on the 23rd of March. They claim to have paid out the proper amounts to my creditors on the 29th (they didn’t), they failed to notify me at all on what was happening, several credit cards became past due and obtaining charges and added interest, and since I had to stop the payments to them, I was also charged a stop payment fee (29.00) by my bank.

    Overall, the service was not there and I was paying for it, and I am unsure why they were allowed to withdraw any money from any account in their situation. I am unsure whether anything can be done due to the fact that they have filed for bankruptcy, but I feel that there should be something that I can do. If you have any advice, or anything that you can do I would appreciate it.”

    I guess I am just looking for a person to contact about my situation, or someone to tell me just to suck it up. Anything you can tell me would surely help more than anyone else seems to want to.

    Thankyou so much,
    -Andrew

    • Andrew,

      At this point the only recourse I know that you have is to complete a creditor claim form since the funds you had on deposit will be part of the pool of funds that will be divided among unsecured creditors. You might want to subscribe to this other post and watch the comments on it for updates.

      You will receive no additional service from Allegro, your creditors will not be notified, the underlying service company, Americorp, has ceased all work on Allegro clients and I am told has laid off staff.

      If you were in the debt management program with Allegro then you can contact your creditors directly or contact a credit counseling company, like this one, for assistance in moving your account for continued debt management help.

      If you were in the debt settlement side of Allegro then you are back to square one, the money you paid in was taken or now frozen by the court. You should probably talk to a local bankruptcy attorney.

      Steve

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