26
Feb 2010

Allegro Seized by Alabama Attorney General

Allegro Law LLC and Allegro Financial Services LLC have been shut down permanently as a result of a lawsuit filed by the Alabama Attorney General seven months prior. According to the office of Troy King, Allegro is one of the “largest debt settlement schemes in the country.”

Allegro was initially sued and subsequently found to be substantially in violation of the Deceptive Trade Practices Act and the Sale of Checks Act. The court ruling clears the way for Allegro to be closed and its assets to be seized.

Refunds on the Way

Approximately $12 million in assets have been seized by the court and will be turned over to a court appointed receiver. Louis Colley has been appointed by the court to administer the funds in such a way to best benefit the 15,000 clients of Allegro.

A similar seizure was made in the Hess Kennedy debt settlement scheme back in late 2008. Those client received their refunds the first week of January, 2010. Based on that timeline, it is reasonable to expect that refunds in the Allegro debt settlement schemes could take a year or more to be distributed to clients. Additionally, those clients were paid 25% of what they had paid in. Therefore, it is expected that only a fraction of amounts paid in would be refunded. So far, the amount available for Allegro clients appears to only average $800 per client.

Clients should contact the court appointed receiver so that they can register their claim prior to the deadline. Affected clients should also share their experience so that others may avoid similar debt settlement schemes that are still operating illegally all over the country.

Unfortunately, Allegro is very similar to many of the other debt settlement companies still operating illegally today. Each one of these companies continues to defraud vulnerable clients who are trying to get help with paying their bills. How has Allegro affected you?

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