Hess Kennedy and The Consumer Law Center claimed to help people reduce their debts by nearly two-thirds in exchange for an upfront fee of as much as 15 to 20 percent of a consumer’s total debt. Instead of paying off consumers’ bills, the defendants kept most of the money. Last year, Cooper won a permanent injunction that bars the firms from any debt settlement services in North Carolina. To try to recover refunds for North Carolina consumers, Cooper’s office in May of 2009 filed a proof of claim with the receiver appointed to handle the companies’ assets.
Life Changing Credit Repair Services and its owner, Anquella Davis promised to fix consumers’ credit so they could qualify for home loans and other lines of credit. The company charged consumers $150 to $500 upfront and then failed to repair consumers’ credit or increase their credit scores. The Attorney General won a temporary restraining order and a preliminary injunction in 2008 barring the firm from engaging in business in violation of NC law, including prohibiting it from collecting advance fees for credit repair. The company has since shut down, and the court issued an entry of default against the defendants last month.
Included in today’s sweep, the
Attorney General’s Office issued cease and desist letters to 12 debt settlement and credit repair operations in the past six months. The letters demand that the following companies stop violating North Carolina law:
Credit repair firms Aces Credit Solutions of St. Charles, IL and Gloria Diggs of Charlotte.
Debt settlement firms
Federal Debt Relief System of Hollywood, CA; Paradigm Financial and Investments, Inc. of Fullerton, CA; No More Mortgage of Orem, UT; Accelerated
Debt Relief of Murphy, TX; Lawgistix, LLC of Miramar Beach, FL;
Allegro Law of Prattville, AL; Global Financial Group of Henderson, NV; and Colonial Financial Solutions of Turnersville, NJ.
Now here is the logic FOLLOW ME HERE: If Allegro Law LLC has a network of lawyers around the country Like they CLAIM to have (Their site claims they have 2 in NC) SHOULDN'T they have known that taking upfront fees in NC was against the law.
I'm just saying. THINK about that.