JK HARRIS File Your Class Action Lawsuit: Read INside N. Charleston South Carolina

Press Release

Ohio Joins 17 States to Stop Tax Relief and Credit Repair CompaniesBy Will Bredderman - June 12, 2008 - 3:16pm

Attn: Arkansas, Arizona, California, Connecticut, Florida, Illinois, Maine, Massachusetts, Michigan, Minnesota, New York, North Carolina, Ohio, Pennsylvania, South Dakota, Tennessee, Vermont, and West Virginia.

Three companies based in South Carolina faced a lawsuit today by Ohio and 17 other states for violations of state and federal laws for unfair and deceptive practices including misleading advertising and failing to deliver services. However, through negotiations, the companies and their manager John Harris agreed to make changes in business practices in order to be in compliance with the laws and to pay $1.5 million back to consumers in restitution.

A multi-state investigation began in 2004 after several attorneys general offices received complaints about JK Harris & Company, L.L.C., JK Harris Financial Recovery System, L.L.C., and Professional Fee Financing Associates L.L.C. Ohio received more than 90 such complaints. It was found that the companies solicited Ohioans primarily via television advertisements and mailings.

Here are summaries of the three companies and what they did:

JK Harris & Company L.L.C. (JKHC) - advertised tax relief services claiming it could settle debts with the IRS for "pennies on the dollar" by using an "offer in compromise" (OIC) with the Internal Revenue Service. A person has to meet many qualifications in order to make an OIC to the IRS. The investigation found that many people JKHC made this offer to would not have qualified for one to begin with. Also, JKHC in many cases collected fees in advance and did not provide the service agreed upon.

JK Harris Financial Recovery System, L.L.C. (FRS) - contacted Ohioans via mailings that stated the consumer would be facing some sort of court action due to their outstanding debt and that the company could help them get out of that situation for a fee.

The investigation found that in many cases there was no such debt faced by the consumer contacted and after consumers paid the company, they didn't receive the service advertised. Professional Fee Financial Associates L.L.C. (PFFA) - extended credit to consumers who entered into contracts with JKHC-then when JKHC couldn't help the consumer they did not let the person out of their loan.

According to the complaint, JK Harris regularly advertised that it had more than 450 offices nationwide. However, the attorneys general contend that only the main office in South Carolina handled consumers' files. JK Harris also said that consumers' files would be handled by "tax experts" or "ex-IRS agents" when in fact the people handling the cases did not have tax expertise as advertised.

Under the terms of the Order that has been agreed to and is before Judge Julie M. Lynch of the Franklin County Court of Common Peas for her approval, JK Harris must clearly explain to consumers under what circumstances the consumer would qualify to reach an OIC with the IRS on back taxes. JK Harris will also make several reforms to its advertising and sales practices. Financial Recovery Systems is barred from offering or performing credit repair services that don't comply with state and federal laws. Both companies will pay a total of $1.5 million in refunds to consumers. The judgment also applies to Professional Fee Financing Associates, L.L.C, and a related company that provided financing for consumer contracts with JK Harris.

Any Ohio consumer who filed a complaint with the Ohio Attorney General's Office or who files a complaint within the next 90 days will be eligible for a partial refund as a result of the settlement agreed upon today. Consumers can file complaints with our office at 1-877-244-6446 or online at www.ag4ohio.gov.

Jkh needs to go now
Delray Bch, Florida
U.S.A.