Illinois Attorney General Lisa Madigan said the consumer debt settlement firm Legal Helpers Debt Resolution LLC failed to live up to its name, instead acting as a -front- to collect hefty fees from desperate consumers. On July 27, 2012, the Chicago Tribune reported that Legal Helpers Debt Resolution agreed to a settlement in which it will refund $2.1 million to its Illinois customers.
The Better Business Bureau (BBB) assigned a rating of -F- to Legal Helpers Debt Resolution based on 213 complaints that have been closed with BBB in the last three years, 100 of which were closed in the last 12 months. Legal Helpers Debt Resolution has more than 2,000 clients in Illinois, meaning the $2.1 million settlement will provide an average of about $1,000 in restitution to customers. Many debt settlement firms take advantage of struggling consumers who are overwhelmed with credit card debt, but it is important for people to understand that credit card debt is considered -unsecured- and can often be discharged through a Chapter 7 or Chapter 13 bankruptcy. Many debt settlement companies advertise themselves as being more effective alternatives to bankruptcy, when in fact, they collect larger fees without delivering any of the results.
Benjamin Legal Services