Debt Settlement Firm Settles Illinois Lawsuit For $2.1M

Legal Helpers Debt Resolution LLC, a Chicago-based law firm, has settled a lawsuit filed in early 2011 by Illinois Attorney General Lisa Madigan. The suit alleged that Legal Helpers unlawfully charged consumers upfront fees to provide debt settlement services.

The firm agreed to provide $2.1 million in restitution for Illinois residents who paid for debt settlement services but failed to receive meaningful debt reduction. Legal Helpers, also known Macey, Aleman, Hyslip & Searns, promised to make consumers debt free.

Under the settlement, Legal Helpers has agreed to not accept any new Illinois customers. Legal Helpers couldn't be reached for immediate comment.

Madigan had sued the firm, which does business nationally, in March 2011, alleging it unlawfully charged upfront fees to consumers in Bureau, Champaign, Kendall, Will and Cook counties.

Last August, Legal Helpers was fined $314,000 and issued a cease-and-desist order of its unlicensed business by the Illinois Department of Financial and Professional Regulation.

That action alleged that Legal Helpers charged upfront fees for debt-consolidation services, which became illegal in Illinois in 2010 through the Debt Settlement Consumer Protection Act.