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The Credit Exchange Introduced Me to Allegro Law. What Do I Do Now? – Ashley


“Dear Steve,

I set up with Allegro Law through what i now know was a marketing tool The Credit Exchange. When I spoke with the credit exchange they told me they had millions of customers and specialized in my situation. I am a single mother who is losing her home since my fiance left and I did not want to take a full bankruptcy since I know I am responsible for my credit card debt.

We set up a payment plan and they told me it would take 17 months for my debt to be cleared. I was ecstatic that I could clear my debt and fix my credit in such a short time so I signed up right away.

I got nervous the following month when I had still not received anything in the mail from them so i called them. They told me not to worry they had already started contacting my creditors and my package would arrive soon. This is 5 months later and I have never received anything from them.
My first payment came out on May 5 2009 as a start up fee. The next month they it came out normal BUT the month after that they took it out 2 weeks early which bounced my account and cost me over $600 in bank fees. This left me with out a pay check for 3 whole weeks with was devastating. I spoke to Allegro Law and all they told me is I should have prepared better and did not even acknowledge that they took it out early. After being treated horribly by their customer service I decided to cancel. i sent in the paper work they needed to take me off but they still did not cancel my account. They told me they were in a processing hold and could not cancel me but would keep taking my money. I had the bank put a hold on anything from them and did not pay them another dime.

I finally got my account canceled in September…I originally canceled in July…and they told me they were not doing any refunds. I have almost $1000 into this company which I could have easily taken and used to pay off 2 credit cards but they will not release it. I have repeatedly tried to contact the new receivership but I am having no luck there either. I am currently being sued by my mortgage company and have been threatened by one of my credit companies to take suet.

I am really terrified and disgusted that a company would steal from their customers and cause so much turmoil in the end. All I want is to know if I am going to get any of my money back or if they have decided to eat it all away in fees for the last 3 months even though I canceled in July.
At this point I am looking into a full bankruptcy since this company has pushed me into it.
They should be ashamed of themselves.

See also  The Credit Exchange Apparently Charging Sales Staff to Rent Desks

How do I find out for good if I will get ANY of my money back. If I am not able to what action can I take to at least recover some of it and would it even be worth suing them for?


Dear Ashley,

I would suspect that you will not get a full refund when and if the court finally releases money from the Allegro Law seizure. Any funds to be refunded probably won’t be disbursed for a year or more. For now, I think all you can do is consider the money lost.

You brought up a very good point that I hear often. People decide that they want to launch on some debt reduction path, like debt settlement, in an effort to be responsible for the credit card debt they incurred. I understand that point of view.

But under the auspices of that belief, people do all sorts of silly and misguided things. Let’s take the debt settlement approach for you. In your life situation there was never an expectation that either you would be able to settle the debt, or that your creditors would agree to settlement offers. That left you open and exposed to escalating collection activity and lawsuits from your creditors as you redirected your payments to a third party debt settlement firm.

Responsibility comes in different forms. Some would say that the most responsible thing to do is to sacrifice everything and repay your creditors all that you owe. But I think there is another aspect to responsibility. It is just as responsible for someone to look at the situation for what it is and take some action that will remedy the situation so that all parties are treated in a fair, civil, and legally protected way.

A fact that eludes most people is that just because someone goes bankrupt does not mean they can’t repay their creditors to achieve their goal of fully honoring their debts. That’s what I did after my bankruptcy and boy was I surprised how my creditors actually told me not to send payments. But that’s another article.

See also Signed Me Up For Allegro Law Debt Settlement. - Michele

Bankruptcy hurts your credit but so does not paying your bills to send money to the debt settlement company. But bankruptcy also prevents you from being sued, it ends collection activity quickly, and it allows you to get a fresh start. Using that “do-over” you can quickly rebuild your credit.

So in your situation we are faced with two issues. The first is the debt settlement mess and the second is how you are going to address the underlying ongoing financial mess. In my opinion you would have been better off going bankrupt from the beginning. It would have avoided all the pain and hassle you have gone through.

It is a shame that The Credit Exchange was not a bigger help in your situation. They appear to have just been a sales arm for Allegro Law and collected a marketing fee for selling you into the program. Allegro Law as you knew it does not exist anymore. Since being taken over by the court it is now just a different mess, not better.

Should everyone be ashamed on their actions and part they played? Hell yes. Even the court appointed receiver is doing a less than optimum job in my eyes. By the way, the Allegro Law court appointed receiver site is

As far as suing goes, you could file a suit in your local small claims court and see what you’ll recover. Unfortunately I doubt it will be much, if anything, since the assets of Allegro are locked up by the court. It seems your only recourse would be to go after The Credit Exchange for the marketing fees they were paid to sell you into the program. That’s probably going to be an uphill and difficult battle.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.


  • OMG Ashley I feel your situation completely. I am going through this huge situation with them and when I tried to pull out they were no help at all. I knew in my gut not to trust this but I was sworn to that this was all ligit. I even worked out negotiations with all of my creditors except on who couldn’t because they were to only company that received power of attorney (only after I forced and confirmed the delivery). I couldnt afford to keep paying allegro and the new rate with the cc company and now I’m being sued! I am researching going after the credit exchange for fraud and misrepresentation! I saved all my emails some even stating I would get a refund and all my information would be pulled out of the program from a supervisor there. I think they should refund my money and pay my fees on the credit card for all of this!

    • Caroline,

      You might want to consider bankruptcy. it will end the debts and the bankruptcy attorney might make a claim to help get some of your money back. If you don’t know a local bankruptcy attorney to talk to click here to find a local bankruptcy attorney you like.


    • I know how you feel I was part of allego alos. were do we go from here, the creditors are calling help

  • The Johnson Law Group is a scam. They have an F rating on the BBB. So they hide behind 2 company names. Coastal Credit Solutions and Debtwave. They play a shell game with your account by tossing you from one to the other. But before they pawn you off to their “affiliate” which is owned by the same company, they dish out a bunch of inaccurate explanations of the terms of service. This is to confuse the consumer so that someone who is already having money problems can be duped out of more money for their “non-profit” service. The “non-profit” is a lie. They keep your first months payment for themselves and do not pay your creditors. This is on top of a monthly fee they collect from you. And you cannot get a refund if you back out.

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