22
Feb 2008

The Consumer Law Center Blocked in North Carolina

Wake Superior Court Judge Donald Stephens signed the order to block The Consumer Law Center and Hess-Kennedy Chartered LLC from providing debt settlement services in North Carolina. According to Attorney General Roy Cooper, clients were often left in worse shape than when they first sought help.

Both The Consumer Law Center, led by Edward Cherry and Hess-Kennedy Charted LLC, led by Laura Hess operated out of the same building in Coral Springs, Florida. They were represented by Raleigh attorney Mark Finkelstein.

According to court documents, 220 North Carolina residents paid over $500,000 since January 2006. It is unknown what percentage of these funds were actually distributed to creditors.

Roy Cooper believes that most debt settlement nightmares go unreported. Many people who feel they are duped are embarrassed to come forward. Still others are embarrassed by their financial situation.

Debt settlement companies rarely provide the help that is sought. Most charge high fees, overstate their benefits and omit the negative consequences.

Consumers are urged to review company reputations with the Better Business Bureau when seeking assistance from a debt settlement company. Even better, learning to negotiate your own settlements can provide the best value.

Tags: , , , ,

26 Responses

  1. Connie says:

    this information is very interesting because I feel that I have also been duped. The consumer Law Center of Coral Springs, FL withdrew almost 6 thousand dollars from my bank account claiming to help me with debt settlement. They did nothing to help me, I am worse off than before and no way to contact them. This Firm needs to be exposed and stopped!

  2. Kenneth Long says:

    If you have been a client of this settlement firm and feel that you have been taken advantage of, you should consider filing formal complaints with the FTC (www.ftc.gov) and your state’s attorney general office.

    Furthermore, you should demand that they either settle out one of your debts as they promised or refund your money to you. And yes, that is YOUR money, even though they have siphoned off much of it for their own fees.

    Don’t beat yourself up over getting duped. Millions of people have signed up for similar schemes over the years. Research each company to make sure they have an excellent reputation before doing business with them.

  3. Kenneth Long says:

    UPDATE:
    According to a recent complaint filed with the Florida State Bar, Laura Hess may face additional scrutiny. Hess is listed as managing partner of the Hess Kennedy law firm. Edward T Kennedy is listed as a name partner in the firm, but no lawyer with that name is licensed to practice law in Florida.

    The various firms owned and operated by Laura Hess are the subject of hundreds of complaints received from consumers that have been ripped off through false promises and shoddy service.

    If you are feeling financial stresses, make sure that you seek help from a reputable organization that is free from unusual patterns of complaints.

  4. Mark Spelling says:

    A Florida woman has been awarded $11.3 million in a defamation lawsuit against a Louisiana woman who posted messages on the Internet accusing her of being a “crook,” a “con artist” and a “fraud.”
    Legal analysts say the Sept. 19 award by a jury in Broward County, Fla. — first reported Friday by the Daily Business Review — represents the largest such judgment over postings on an Internet blog or message board. Lyrissa Lidsky, a University of Florida law professor who specializes in free-speech issues, calls the award “astonishing.”

  5. Courts are asked to crack down on bloggers, websites. Beware bloggers…

  6. Kenneth Long says:

    Thank you for your comments. As you are aware, there is no instance of libel in this article. Our organization shall continue to disseminate information and alerts about actions taken against companies by government regulators for the benefit of consumers.

  7. Bryan Gibson says:

    I too am being victomized by CLC….what should I do?

  8. Kenneth Long says:

    Dear Bryan:

    You may wish to contact the consumer protection agency in your state, which is likely a department within the Office of the Attorney General. There is a possibility that enough of your fellow in-state citizens have also filed complaints to warrant an investigation.

    Readers are reminded that while the presence of an unusual pattern of complaints about an organization may signal possible wrongdoing or negligence, it does not serve as proof of such. Therefore, you are encouraged to exercise due diligence prior to entering into any contractual agreement with any party.

    Our role is to provide public information and to allow for helpful discussion relating to certain developments.

  9. Eloise says:

    I entered into a debt repayment plan with CLC back in June 2007. As of this date, and after several attempts to find out the status of my case, I have received nothing from them. They are deducting 210.88 from my bank account every month. I wonder, have I been scammed? How can i find out if these people are doing anything for me with my creditors? Please help me!

  10. Tom321 says:

    It was exposed on TV that they are frauds. Google these links to watch for your self.

    Google: Foreclosure Fallout: Credit Repair Come-Ons

    Google: 7online.com: Debt settlement company fails 5/13/08

    Or just google their name to see that they are being sued in Florida. They are complete scam artists. Hope this helps everyone.

  11. Kenneth Long says:

    Thank you for the helpful information. As always, make sure that you learn as much as you can about the reliability of any company before entering into a contract with them.

    If you feel that you have not been served by them in an appropriate manner, then you can escalate your complaint by contacting your state’s Attorney General office. Another good avenue is to contact the Federal Trade Commission (www.ftc.gov) if you feel that you are being mistreated.

  12. Tom321 says:

    As of July 22, 2008 Laura Hess of Hess Kennedy scam was suspended by the Florida Bar Association alleging deceptive trade practices that may have cost consumers millions. Her company is to be taken over by the court and liquidated. If you want a refund now is the time to ask for one. The Laura Hess/Edward Cherry AKA Kennedy scam has been put out of business for now.

  13. JoshuaM in Chicago says:

    I have been scammed out of roughly $7,000 by The Consumer Law Center, which I just learned works in conjunction with the Hess & Kennedy scam. I filed complaints with the BBB and the Attorney General in Florida (home state of the the company) and Illinois (where I live). Does anyone have further advice on how I can recover the money I have been defrauded of?

    Please email me at…

    joshuarichard02@gmail.com

    …if you have advice.

  14. Kenneth Long says:

    Dear Joshua:

    You may wish to ask the office of the Attorney General in IL how many people have filed complaints. Most offices look for at least 10 complaints before they will make that a priority.

    Otherwise, you may be out that money. You should consider pressuring the company to either refund what you have paid or to release it to one of your creditors.

    Suing them in court is an option, but it is a longshot that would likely result in greater expense. Hopefully the government regulators will do that for you, as they already have in NC.

  15. otis luke says:

    I have had similar problems with Consumer Law Center.I called for 10 days before I could contact my account exeutive.After they got $1791 in fees they dropped me as a client.None of my creditors had been paid anything.Where can I join a lawsuit?

  16. Matt says:

    I”m 10 months into a 14 month contract with CLC. I haven’t been “dropped” by them yet, but from what I’m reading its coming. None of my creditors have been contacted or payed. I’ve called them over and over and can never talk to my account executive. I’m in Michigan wanted to get this out there in hopes more people from Michigan are having problems and we can do something about it.

    emaill me at mattenders@gmail.com

  17. Kenneth Long says:

    The related debt settlement companies of Laura Hess and the Hess-Kennedy Law Firm have been placed into receivership by the Attorney General of Florida. In addition, the Florida Bar Association has taken steps to suspend the law license of Laura Hess.

    There have been accusations of restricted client funds being taken from escrow and used to pay personal expenses of company executives. If these are true, then it is unlikely that many people will receive full refunds.

    You will need to contact the office of the Attorney General in your state and file a formal complaint. It will normally take at least 10 formal complaints received in your state before it justifies action by the AG’s office. This should not be hard in this case, since the number of complaints against Hess-Kennedy have been widespread. Your AG’s office can also provide additional information about what to expect.

  18. Betsy Hutchinson says:

    I urge people to go to the website that is handling the receivership – LBF global.
    The information regarding this issue is there. Do not pay these people (CLC) any more of your hard earned money. I am so sorry for us all that there are not more protections in place against people who promise you a service, take your money, and then you are left with a mess to clean up. It is all very sad.

  19. Bruce says:

    I have been with CLC for over a year. It sounds like they will be shutting down debt settlement as of 10/24/08. Is this true? What are the chances of me getting my money back and if so, how? Has anyone transfered their debt settlement accounts to any other firm?

  20. Kenneth Long says:

    Your chances of getting your money’s worth with any debt settlement company are slim. In this case, your chances of getting your money’s worth or getting your money back are next to nothing.

    Bruce, you should contact your state’s Attorney General office to find out more about any possible refunds. Some states are already on board and are making sure that their victims receive some attention.

    Bruce, you might consider putting those monthly payments into savings so that you can negotiate your own settlements. It could save you thousands of dollars and help you retain more control over your finances.

    CLC is in receivership, which means that a government takeover is seeking to preserve and return client funds. Again, I recommend contact the AG’s office for help.

  21. Eloise says:

    I had been in contract with CLC since June of 2007, @ the rate of 210.88 per month. I found out only because I tried to contact my account rep. via email and surprise surprise, got email back that they were “in receivership”. I almost fainted! I’m 74 years old, retired and had approx. 15,000. in debt from 3 credit card companies. I spoke with the guy of the receivership and he told me to file a proof of claim, which I did. I do not expect to receive any of my almost 5,000. back, but don’t even know what the status is with my creditors!. I don’t want to contact them for fear of stirring up the pot…. I guess I will wait for the creditors to contact me and take it from there. It is unreal how these crooks have no conscience in stealing other people’s money. I have requested a copy of my file from CLC but, of course, no reply to date. I’m req

  22. Kenneth Long says:

    Dear Eloise:

    It is hard for us to understand how such companies are able to operate. We hope that you are able to receive a refund for most of your payments.

    In the mean time, you may wish to begin making deposits into your own savings account so that you can negotiate directly with your creditors.

    Debt settlement companies can have high costs, and unfortunately, there is tremendous potential for abuse.

  23. Cindy Lloyd says:

    Myself am a victim of consumer law center, I am so mad! they have taken me for $5000. They had taken out $462.00 month since Jan, 2008
    They didn’t take Oct’s payment out so I called and they had a recording for a website to go to and claim you money. But now the website is shut down it was bkb2.com – We even checked the BBB and they had a good rate so we went with them. As hard of times that we are all having, you have people out here like them that take total advantage of us. I live in Tn. We need to get our MONEY back. I am now in process of filing bankrupcty because of them almost lost our house because of them…If anyone has any info for me please let me what i need to do.
    Thanks

  24. Kenneth Long says:

    Dear Cindy Lloyd:

    We understand the frustration that you are feeling. I encourage you to contact the offices of the Attorney General in both TN and in FL. You may file a formal complaint against that rogue debt settlement company as well as inquire about a potential refund.

    The Consumer Law Center and the Hess-Kennedy Law Firm as well as other related entities are in receivership. Regulators are still trying to determine where the money was taken, although it appears it was fraudulently removed by the owners of the company. While it may be possible to receive a partial refund, it is unlikely you would see any substantial relief.

    Please do your part to file formal complaints against them and register for a possible refund.

  25. Anne says:

    I’d ‘been with’ the CLC since June 2007; they were debiting $626 from my checking account monthly; I filed my Proof of Claim form for $10,000+.

    I just e-mailed the AG of Colorado and will do the same with Virginia (we moved). How can Ms. Hess sleep at night, knowing how much she scammed from so many people?

  26. Morgan Schaal says:

    As a consumer advocate, researcher and author for the last 15 years, it’s astonishing how many dishonest people justify in their minds the injury they cause to others.

Leave a Reply

Click to Advertise here