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State reaches settlement with debt reducation company

Posted by wlpo on July 9, 2012

Careful before you hire someone to get you out of debt.  A company that charged people upfront to fix their money woes has reached a settlement with Attorney General Lisa Madigan and the Illinois Department of Financial and Professional Regulation.

Legal Helpers Debt Resolution LLC will have to pay $2.1 million in restitution for people in Illinois who paid for debt settlement services but didn’t receive meaningful debt reduction.   It affected people in Bureau, Champaign, Kendall, Will and Cook counties.

Attorney General Lisa Madigan says the company was fronting as a law firm claiming to help people reduce their debt, but the company’s primary purpose was to squeeze thousands of dollars in illegal upfront fees from struggling families for supposed debt relief that never materialized.

If you had hired this company, you should call the Attorney General’s office’s Consumer Fraud Hotline at 1-800-243-0618.

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