A class action lawsuit accuses Madison Monroe & Associates of allegedly misleading consumers about their ability to negotiate their debt, instead making their bad financial situation worse.
"Defendant targets consumers who are in significant debt with promises to improve their financial situation, and credit outlook," says the lawsuit, filed in Cook County Circuit Court. "These consumers, like Plaintiff, 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 companies 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," the lawsuit states. "However, these promises are often broken, leaving the consumer deeper in debt and in a much worse place than where they started."
Lead plaintiff Suzannah Lovelace paid the company fees to help settle her debt and was told to stop making her monthly payments to creditors.
"Defendant’s strategy only caused Plaintiff’s financial situation to deteriorate further, as her creditworthiness was destroyed," the suit says. "Plaintiff was forced to pay substantial amounts of money to Defendant even though Defendant did not provide the services as promised."
The lawsuit seeks money damages, plus legal fees.
The plaintiffs are represented by attorneys Bryan P. Thompson and Robert W. Harrer, of the Chicago Consumer Law Center, of Lisle; and Seth McCormick, of the Great Lakes Consumer Law Firm, of Chicago.
Editor's note: This article has been revised from a previous edition to correctly list the attorneys representing plaintiffs in the lawsuit. A previous version listed incorrect counsel.