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Law firm to pay $2.1M settlement in debt settlement scam

The Chicago Tribune reports that Illinois Attorney General Lisa Madigan said the state has settled a lawsuit it filed against a Chicago-based law firm alleging that it unlawfully charged consumers upfront fees to provide debt settlement services with promises to make them debt free.

The settlement with Legal Helpers Debt Resolution LLC will provide $2.1 million in restitution to Illinoisans who paid for debt settlement services but failed to receive meaningful debt reduction.

Madigan sued the firm alleging it unlawfully charged upfront fees to consumers in Kendall, Will, Cook, Bureau and Champaign counties in Illinois.

Read the full article about debt settlement.

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Bradley Covey is an Illinois bankruptcy attorney helping individuals and businesses file Chapter 7 bankruptcy and Chapter 13 bankruptcy in Kane County, DuPage County, Kendall County and Will County, Illinois. Brad attended SIU undergrad and NIU College of Law. Brad served in the military at Ft. Stewart, Georgia and Ft. Sill, Ok as a Field Artillery Officer. Brad later served in the Illinois National Guard as a Major.

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