AG files suit against debt settlement service

March 2, 2011 3:02:15 PM PST
Illinois Attorney General Lisa Madigan filed a lawsuit Wednesday against a debt settlement service she says unlawfully charged upfront fees to consumers in Illinois.

The lawsuit accuses Legal Helpers Debt Resolution, LLC, of charging consumers upfront fees with promises to make them debt free. The suit claims the debt was not lowered and consumers were left worse off financially.

"LHDR's marketing materials and their sales pitch lead consumers to believe wrongly that their credit card debt will be eliminated with the help of a national law firm, they lead consumers to believe when they sign up with LHDR they are hiring practicing attorneys to stand with them in their struggle to negotiate pay offs of their credit card debt with big banks," Madigan said.

The firm has not returned ABC7's calls for a comment.