State scores settlement with debt fixers
The state has reached a $250,000 settlement with two out-of-state debt resolution firms that had enrolled more than 300 Maine customers.
The two companies — Legal Helpers Debt Resolution LLC and The Mortgage Law Group LLP — offer debt resolution services. Neither company has an office in Maine.
According to a press release from Attorney General William Schneider's office, the companies held "partnerships" with many Maine attorneys as a way of doing business in the state.
State law requires companies providing debt settlements or loan modifications to be regulated by the state's Bureau of Credit Consumer Protection and to register with that bureau, or employ a Maine-licensed lawyer to perform debt resolution services.
Maine officials alleged that many Maine consumers did not speak with an attorney when they enrolled in the debt resolution programs and were misled about the claims and benefits of the programs.
The companies agreed to pay $250,000 in restitution to over 300 Maine customers in addition to paying $15,000 to cover a portion of the state's investigative and administrative expenses in relation to the case.
Earlier this year, Legal Helpers Debt Resolution was the subject of an identical investigation in its home state of Illinois, according to the television station KSDK, where Attorney General Lisa Madigan alleged that non-lawyers were recruiting customers for its debt resolution services.
Most Recent
Most Recent
Comments