Illinois Debt Settlement Consumer Protection Act: A power tool that allows consumers to sue Debt Settlement Companies that break the law
Wondering If You Can Sue A Debt Settlement Company?
Have you been scammed, deceived or taken advantage of by a debt settlement company?
If you live in Illinois, hired a debt settlement company in the last 3 years, and are wondering if you can recover some or all of your money from a debt settlement company then I have good news…
The debt settlement industry has become so fraudulent and scam-ridden that Illinois had to pass a law, the Debt Settlement Consumer Protection Act, to protect its citizens from this industry.
What is a Debt Settlement Company?
A Debt Settlement Company offers to try to peoples’ debts for less than they owe. They often make over-the-top, too good to be true promises and prey on people desperate to reduce their debt.
Debt Settlement Companies charge a high fee, usually a percentage of the total debt you list with them to try to settle.
What a Debt Settlement Company Is Not (and is not covered by the law)
A Debt Settlement Company is not a Debt Consolidation company. Debt Consolidation companies offer people one loan to pay off many different loans. Thereby, consolidating the different loans into one loan.
Debt Settlement Companies do not repair credit, these are known as Credit Repair Organizations (CRO).
In case you’re considering either of these two industries to eliminate your debt or repair your credit, we suggest you avoid these companies also. These industries are also rife with scams and fraud where they take consumers money and do little, if anything, to help and often make things worse.
Illinois Debt Settlement Consumer Protection Act
This little-known law regulates how debt settlement companies must conduct business in Illinois.
Most telling about the debt settlement industry is that a violation of this law is automatically a violation of the Illinois Consumer Fraud Act.
Most of the everyday tactics and procedures of debt settlement companies violate the Debt Settlement Consumer Protection Act.
For example, The Debt Settlement law requires that companies:
Must register with the state
- As of this writing, there is not a single, active registered Debt Settlement company registered in Illinois
Cannot charge all upfront and monthly fees other than a one time $50 application fee
- The industry’s business model is to charge thousands of dollars where they are paid first before any debt settlement “work” is performed
Not advise people to stop paying their debts (putting them at risk of high fees, interest rates, and lawsuits)
- Again, their business model requires consumers to stop paying their bills
Allow consumer to cancel at any time and promptly refund their fees
- Anyone that’s dealt with a Debt Settlement company knows this process is a time consuming nightmare that rarely results in a “prompt refund of all fees”
The Debt Settlement Act is a powerful tool when you’ve been taken advantage of by a debt settlement company.
We do not charge our clients when we sue a debt settlement company. If we win, the law allows us to collect our fees and costs from the debt settlement company.
This allows the everyday person to have their day in court to sue their debt settlement company to get their money back.
If you hired a debt settlement company in the past 3 years you may have a case against them to recover money and damages.
Give us a call at (312) 883-8644 for a free evaluation to tell us your story and see if you have a case.