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Sued or Sanctioned

Someone is Gunning for Credit Counseling Groups Budget Right Debt Management and American Credit Counselors

Exclaim Marketing

A tipster (send in your tips here) forwarded to me two recent formal complaints to the IRS based regarding Budget Right Debt Management and American Credit Counselors. The issue seems to be regarding IRS 501(q) standards. Now normally this is not something I might publish but in this case it seems the ammunition came from the organizations very own public ... Read More »

    NoteWorld Involved in Georgia Class Action Case on Debt Adjusting. Raises Bigger Issues.

    It seems the issues surrounding if payment processors in the debt settlement world is getting more complicated. This recent class action case is out of Georgia against NoteWorld and Noteworld Servicing Center; Hattie Burke v. NoteWorld. It appears that NoteWorld gets sucked in not because of their actions but because of the actions of who they decided to provide services ... Read More »

      TX Class Action Suit Filed Against Debt Choice, Lexxiom, The Iniguez Law Firm, and Miguel Iniguez, Esq.

      A tipster (send in your tips here) brought the recently filed class action case in Texas to my attention. Mary Hope v. Debt Choice, Lexxiom, The Iniguez Law Firm, and Miguel Iniguez. It is yet another case that involves an attorney debt settlement model, back-end servicer, and marketing partner. On March 22, 2011 Mary Hope filed a class action lawsuit ... Read More »

        Florida Continues Crackdown on Telemarketing Licenses. Sales Scripts Need to Be Submitted in Advance.

        Ready to Collapse

        Last year I wrote about the need for a Florida telemarketing license if you are calling out of or into Florida for clients. Information on how to get a license can be found here. Apparently telephone sales scripts need to be submitted to the department prior to use. At least that’s what some folks found out the hard way. This ... Read More »

          Second Attorney, Partner, Has Law License Suspended for 6 Months for Debt Settlement Activity

          Ready to Collapse

          Yesterday I published information about an attorney in Florida who had his law license suspended for debt settlement activity. What I missed was his partner had his law license suspended as well. Thanks to commenter Bulb it was pointed out to me. “Brett Feinstein, 407 Lincoln Road, Suite 2A, Miami Beach, suspended for six months, effective 40 days from a ... Read More »

            Florida Lawyer Suspended for Debt Negotiation Assistance and Fee-Sharing

            Ready to Collapse

            A tipster (send in your tips here) forwarded me a copy of the latest disciplinary actions out of Florida that show an interesting situation which may have a far reaching impact on attorney-back office relationships with debt settlement companies. Douglas David Stratton, Miami Beach, Suspended for 30 days, effective 15 days from a January 4 court order. Stratton’s practice expanded ... Read More »

              State of North Carolina vs. Consumer Law Group. My Morning in the Courtroom.

              NCvCLG

              This morning I had a rare opportunity to go down to the court house and watch a motion argued in the case State of NC vs. Consumer Law Group and Michael Metzner. It was a motion to dismiss and attorney Richard Epstein from Greenspoon Marder flew in from Florida to represent Consumer Law Group. In October 2010 I reported on ... Read More »

                Are You at Risk of Refunds Back Two Years if Your Debt Settlement Clients File Bankruptcy? Legal Helpers Debt Resolution Judgment Says Yes.

                Not long ago I was having a conversation with someone and we were talking about the big refunds debt settlement companies may face from having charged consumers advanced fees for services but not delivered them. The point was also mentioned that for debt settlement clients that enrolled in and paid fees for debt settlement services that later filed bankruptcy, for ... Read More »

                  Global Client Solutions and Rocky Mountain Bank & Trust Still Can’t Shake Free of KY Case

                  Global Client Solutions and Rocky Mountain Bank & Trust were named in a case that had been filed back in May of 2010. The two entities have tried to get out by enforcing an arbitration clause, but the judge didn’t agree. On February 17, 2010 Judge Heyburn issued an opinion regarding the requests to dismiss GCS and Rocky on the ... Read More »

                    Arizona Attorney General Reaches Deal WIth Principal Reduction Group

                    Ready to Collapse

                    Attorney General Tom Horne today announced recently a settlement agreement with Scottsdale based Principal Reduction Group, LLC, and Brian Cutright, owner and operations manager of Principal Reduction Group, LLC. Pursuant to the settlement agreement, Principal Reduction Group and Brian Cutright agree to no longer engage in any activity, directly or on behalf of any third party, that involves originating, closing, ... Read More »

                      Freedom Debt Relief to Pay Big Settlement to Washington Residents

                      FDR Judgment Summary

                      The Attorney General in Washington announced today they had reached a settlement with Freedom Debt Relief to pay nearly $800,000 in restitution plus attorneys fees and costs. We’re paying special attention to operations that take advantage of people who, due to this tough economy, are already struggling to put food on the table and keep the lights on,” Attorney General ... Read More »

                        State of Washington Files Amicus Brief in Support of Case Against Freedom Debt Relief and Freedom Financial Network

                        Another brief forwarded to me recently by a regulator friend was that of the amicus brief filed by the State of Washington in a private case against Freedom Debt Relief, Freedom Financial Network, Andrew Houser, and Bradford Stroh. The issue appears to have been if Freedom was in fact a debt adjuster under the Washington Debt Adjusting Act. The claim ... Read More »

                          Global Client Solutions and Rocky Mountain Bank & Trust Said to Have Aided and Abetted Debt Settlement Companies to Violate Statute

                          A regulator friend of mine just forwarded me a copy of the State of Washington amicus brief filed in a class action case I reported about previously. The case is Carlsen v. Global Client Solutions and Rocky Mountain Bank & Trust. – Source The State of Washington weighed in on the matter and make some strong statements that do not ... Read More »

                            Legal Helpers Debt Resolution Lawsuit May Just be the Primer to Kill Most Attorney Model Debt Settlement Groups

                            Ready to Collapse

                            For some it was only a matter of time before a regulator took a swipe at the attorney model debt settlement approach. Well today the mystery was solved of who it would be. Attorney General Lisa Madigan, a hero of many for standing up for consumers, answered the call and filed suit today against Legal Helpers Debt Resolution, headquartered out ... Read More »

                              Details on Suit Filed Against Legal Helpers Debt Resolution by Illinois Attorney General Madigan

                              U.S. National Debt Relief Plan

                              For the sake of disclosure, everything below is what is alleged in the lawsuit against Legal Helpers Debt Resolution, also known as Macey, Aleman, Hyslip & Searns. The suit kicks attorney model debt settlement and says it is no better than service delivered by a non-law-firm debt settlement provider. LHDR rarely, if ever, negotiates settlements with all of consumer’s creditors. ... Read More »

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