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Sued or Sanctioned

Global Client Solutions, Debt Care USA, and Nationwide Debt Settlement Group Hit With Oregon Class Action

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Global Client Solutions, Debt Care USA, and Nationwide Debt Settlement Group were all recently named as defendants in a Oregon class action suit. This now marks the yet another in a growing line of class action suits that name the chain of players as parties. This case names the front end marketer, back office processor and payment facilitator. The allegation ... Read More »

    Florida Not Happy With Horizon Financial and Mader Law Group

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    A tipster (send in your tips here) sent this in. According to the Sun Sentinel out of Florida, the Florida AG is investigating a Florida debt relief company, Horizon Financial. According to state allegations the company was engaged in making solicitation calls that mislead and deceived consumers into thinking they were dealing with a U.S. Treasure Department foreclosure assistance program, ... Read More »

      Colorado Attorney General Goes After Loan Modification Solutions and Principal Financial Partners

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      Colorado Attorney General John Suthers recently announced that his office has filed a lawsuit against Castle Rock-based Loan Modification Solutions; its owners, Robert Auhll (DOB: 9/21/1963) and Nanette Auhll (DOB: 3/7/1963); and the company’s salesperson, Thomas Stefanszky (DOB: 7/23/1962), on suspicion that they defrauded consumers in search of home loan modifications and foreclosure relief in Colorado and other states. According ... Read More »

        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.

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              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

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                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

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                  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.


                    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

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                          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 »

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