Debt Settlement Company "Legal Helpers" Fined for Violations

Debt settlement service providers and the advertising for debt relief services must comply with both federal and state laws and one Chicago based debt settlement company found out the hard way that where debt settlement services are concerned, tow the line or end up with a fine...and a cease and desist order as well. Chicago Illinois headquartered debt settlement company "Legal Helpers" was fined $314,000 for offering and providing debt relief services through an attorney who did not have a license to practice law in the state of Illinois. The Illinois Department of Financial and Debt Regulation (IDFDR) levied the fine and a cease and desist order against Legal Helpers, setting a strong example of what not to do if you are a debt settlement company. In addition to the fine, the Illinois Attorney General filed a complaint against the firm, also known as Macey, Aleman, Hyslip & Searns, for violations of the Debt Settlement Consumer Protection Act.

Using the services of a debt settlement company or debt settlement law firm is one option for debt relief that is available to debt heavy consumers. As with any other service that requires a long term commitment and money out of pocket, a consumer should research the company itself and look to the better business bureau for a rating, recommendation, or just an overall seal of approval that proves the legitimacy of the debt relief services provider. Typically, a law firm must face tougher regulations when offering debt settlement services as they must comply with state and federal laws and maintain standards and legal ethics.

When in the market for debt settlement services, knowing what is involved in the process itself and comparing companies will only help a consumer in the search for a company or firm to work with. Since the debt settlement attorney or representative will be negotiating with creditors on your behalf, the trust and comfort level must be there before any client/consumer brings unsecured debts into the program for possible inclusion and subsequent settlement. In the case of debt settlement providers and doing the research before committing to a program, the old saying "an ounce of prevention is worth a pound of cure" rings true.

 

Latest News:
Federal Student Loan Reform
Consumer Credit Card Balances Drop for Second Month In A Row
Consumer Fraud Lawsuit Filed Against Debt Settlement Company CSA Credit Solutions