I hired Legal Helpers in December 2009. My plan began 12/31/09. My total debt was $23,642.18, and my plan called for me to pay $15,303.20. After some initial fees I would pay $423.85 per month for 36 months.
The same day Legal Helpers plan took effect, my biggest credior canceled a debt of $8,924.88 (I successfully got that debt canceled independent of Legal Helpers), and about 30 days later I was surprised to receive a 1099-C Cancellation of Debt Form in the mail, canceling the debt of $8,924.88.
Legal Helpers has 2 offices... Main office in Chicago and the Administrative Office in Irvine, CA. Since I live in California and signed up via the Irvine office, I called the same woman who signed me up and took in all my paperwork. She instructed me to fax over the cancellation of Debt Form. I did so, twice. I then called the woman again to confirm she received the faxes. She verified that she did. I then also copied and mailed a copy of the form to them, and also scanned & sent the form to them for a total of 4 times.
As soon as they received the 1099-C Cancellation of Debt Form what they should have done, and were legally required to do, was immediately adjust my total debt from $23,642.18 down to $14,717.30, and the amount of my bill should have been adjusted from $15,303.20 down to $9,613.00. But they never adjusted my account, keeping my total debt at $23,642.18 and they still billed me $15,303.20, overcharging me $5,700.00.
With the $8,924.88 debt canceled, my adjusted debt was $14,717.30... and that amount is BEFORE they negotiated any reduction in debt with the other creditors. But instead of charging me the adjusted bill of $9,613.00, they still billed me $15,303.20. Overcharging me $5,700.00.
Their final electronic withdrawal from my bank account of $423.85 should have been in Septembe 2011, but they made 13 additional withdrawls from October 2011-October 2012.
They have committed: Catastrophic Account Mismanagement. Massive Fraud. Perjury. Grand Larceny. Wire Fraud. Massive Overcharging. Theft. Failure to provide services. Concealment. Charging of illegal fees.
I have pursued them relentlessly at both their Irvine, California and Chicago, Illinois offices via phone, fax, mail, and e-mail, and I have demanded that they immediately refund the $5,700.00 overcharge. Yet nothing from them at all. I want to sue the hell out of them!