A class action lawsuit accuses consumer debt consulting agency PanAmerican Consulting of violating state consumer fraud laws, by allegedly failing to deliver on promises of debt relief.
"Defendant targets consumers who are in significant debt with promises to improve their financial situation, and credit outlook," says the suit, filed in Cook County Circuit Court. "These consumers are especially vulnerable: relentless collection letters, calls, and even lawsuits can, and do, drive them to seek an escape valve for their financial issues. Debt settlement providers, like Defendant, make enticing promises to consumers in debt, claiming that they can significantly lower their payments and help them resolve their debt problems, once and for all."
However, those promises are often broken, "leaving the consumer deeper in debt and in a much worse place than where they started," the suit claims.
PanAmerican charged lead plaintiff Malanie Rady fees of 50 percent of the reduced debt, although an Illinois state law limits fees to 15 percent, the suit clams.
The lawsuit seeks unspecified money damages, plus attorney fees.
The plaintiff is represented by Bryan Paul Thompson and Robert W. Harrer, of Chicago Consumer Law Center P.C.