An Illinois woman has filed a class action lawsuit against law firm Franklin Legal Group and debt settlement company Debt Advisors of America, claiming that she received bad legal advice to stop paying her creditors, which allegedly destroyed her credit rating.
According to court documents, Carter was previously having trouble paying her bills and contacted Debt Advisors for advice on her debt issues. Carter says that Debt Advisors referred her to FLG, who claimed that they could significantly negotiate down her debt and that she would only pay a fraction of the amount that she owed while preventing long-term damage to her credit profile.
Carter says that FLG advised her to stop paying her creditors and to cease all communications with them while FLG agents would negotiate a settlement. Carter claims that she raised concerns about the damage to her credit if she stopped paying her bills and was referred to collections, but that FLG assured her that the damage would only last for a few months and would recover after they helped her settle her debts.
Carter says that she allegedly followed FLG's advice, which allegedly caused her financial situation to deteriorate further, destroyed her creditworthiness and, in addition, required her to pay FLG substantial sums of money for their services. She claims that at least one of her creditors has filed legal action against her to collect on a debt.
The lawsuit claims that both defendants target vulnerable consumers in significant debt with promises of improving their financial situations and credit outlooks. Carter contends that FLG, despite claiming to be a law firm, does not actually practice law in Illinois and employs attorneys not permitted to practice law in the state. Debt Advisors offers debt restructuring services described as "debt settlement."
Carter argues that FLG and Debt Advisors violated provisions of the DSCPA, including operating without a license in Illinois, charging fees in excess of the legal limit, providing false and misleading information to consumers, and failing to make required disclosures.
Carter is seeking certification of her class action lawsuit and a judgment for damages, plus attorney's fees, court costs, and other relief. Additionally, she is seeking that the court declare her contract with FLG void due to FLG allegedly operating without a license.
The plaintiff is represented by attorneys Bryan Paul Thompson and Robert W. Harrer of Chicago Consumer Law Center, P.C. in Lisle and Seth McCormick of Great Lakes Consumer Law Firm, LLC in Chicago.