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Legal Solutions Debt, LLC; 16633 Dallas Parkway, Ste 600; Addison, TX 75001 - Ceast and Desist Order and Affirmative Order for Sanctions
December 6, 2013
WHEREAS the Bureau of Consumer Credit Protection (the Bureau) is an agency of the State of Maine authorized and designated to administer the Maine Consumer Credit Code, Title 9-A of the Maine Revised Statutes, and the Maine Debt Management Services Act, 32 M.R.S. ?? 6172-6183; and
WHEREAS the Superintendent of the Bureau, acting as the administrator of the Maine Consumer Code and the Maine Debt Management Services Act, has determined that notice and hearing need not be provided prior to the issuance of a cease and desist order based on the need for immediate action to protect the public interest, pursuant to 9-A M.R.S. ? 6-108(1); and
WHEREAS Respondent Legal Solutions Debt, LLC (Legal Solutions Debt) has engaged in activities or offered to assist consumers for purposes that are within the ambit of debt management services as defined by 32 M.R.S. ? 6172(2)(A)-(D), as further specified below; and
WHEREAS Respondent Legal Solutions Debt is not registered by the Bureau as a debt management service provider, and does not possess a surety bond, pursuant to 32 M.R.S. ?? 6173(2), 6174; and
WHEREAS on September 19, 2013, the Bureau received a complaint from a Maine attorney on behalf of a client of his, B. E. R., of South Portland, Maine, and the Bureau staff thereafter spoke to B. E. R., and learned the following:
B. E. R. learned of Legal Solutions Debt on the Internet while trying to find help in consolidating various loans of hers;
B. E. R. spoke to a representative of Legal Solutions Debt and was told that that company would negotiate debt settlements for her;
One or about July 10, 2012, B. E. R. enrolled with Legal Solutions Debt?s program of debt settlement by signing a client retainer agreement and authorized Legal Solutions Debt to negotiate settlements of debts of some $30,000 for her;
The client retainer agreement and associated paperwork required B. E. R. to make payments to an ?ACH . . . Fee Debit & Personal Savings Program,? from August 1, 2012, through August 2016;
B. E. R. in fact made payments of $429.75 for four months, $380 for eight months, and $85 once, for a total of $4,844;
After a period of time B. E. R. determined for herself that nothing was being done to settle her debts, and she learned that only $1,574.73 was being held by a payment processor, Global Client Solutions, in an ?escrow? account from which her debts would be paid;
Creditors began calling B. E. R., and in April 2013 she was sued in civil court by at least one creditor, Discover Bank, for $17,899.88 on an original debt of approximately $13,500;
B. E. R. terminated her enrollment with Legal Solutions Debt and, through her attorney, demanded the return of the money she had paid; and
Legal Solutions Debt refused to refund any funds to B. E. R.; Global Client Solutions refunded to her $1470.03; and
WHEREAS on October 17, 2013, Bureau staff wrote to Legal Solutions Debt to demand a refund for B. E. R. of the money she had paid, and to inform Legal Solutions Debt that its activities were being undertaken in violation of the Maine Debt Management Services Act; and
WHEREAS Legal Solutions Debt has refused the Bureau?s request that B. E. R. be refunded any money, and has ignored the Bureau?s directive that it must be registered to contract with Maine consumers.
NOW THEREFORE it is hereby
ORDERED that Legal Solutions Debt shall forthwith cease and desist from engaging in conduct, or offering to perform on behalf of any Maine consumer any service, within the ambit of the Maine Debt Management Services Act, 32 M.R.S. ? 6172(2)(A)-(D), pursuant to 9-A M.R.S. ? 6-108(1), unless or until Legal Solutions Debt is properly registered to perform or to offer such services; and it is further
ORDERED that Legal Solutions Debt shall, within 14 days of the date of this Order, pay to the ?Treasurer, State of Maine? $3,373.97, pursuant to 9-A M.R.S. ? 6-108(1), for the purpose of refunding to B. E. R. the balance of money she paid to Legal Solutions Debt, for which no services were provided and which were collected by Legal Solutions Debt at a time when it was not registered under the Maine Debt Management Services Act, less the amount returned to her by Global Client Solutions; and it is further
ORDERED that Legal Solutions Debt shall, within 14 days of the date of this Order, pay to the ?Treasurer, State of Maine? $1,500 in civil penalties for having contracted with B. E. R. while not being registered under the Maine Debt Management Services Act to do so, pursuant to 10 M.R.S. ? 8003(5)(A-1)(3); and it is further
ORDERED that Legal Solutions Debt shall, within 14 days of the date of this Order, pay to the ?Maine Bureau of Consumer Credit Protection? $1,000 towards the reasonable expenses, necessarily incurred, of its investigation and prosecution of this matter, pursuant to 9-A M.R.S. ? 6-106(6) and 32 M.R.S. ? 6178(3).
BY ORDER OF THE SUPERINTENDENT OF THE BUREAU OF CONSUMER CREDIT PROTECTION
| Date: December 06, 2013 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |
NOTICE OF APPEAL RIGHTS
Any party to this proceeding aggrieved by this Order may, within 30 days of the receipt of this Order, file a request for an adjudicatory hearing pursuant to 5 M.R.S. ?? 9051(2), 9052(1)(A), at which the aggrieved party shall have the opportunity to prepare and submit evidence and argument. If no request for a hearing is timely made, the terms of this Order shall become final and binding at the end of the 30-day period. Any party to this proceeding aggrieved by this Order may thereafter seek judicial review of the Order pursuant to 5 M.R.S. ?? 11001-11008 by filing a petition for review within 30 days after receipt of notice. Any other person aggrieved shall have 40 days from the date the Order was rendered to petition for review.
| Date: December 06, 2013 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |