Allegro Law Gets Busted!!

We’ve been talking a lot lately about fraudulent debt settlement companies and how the Better Business Bureau and the Federal Trade Commission are cracking down on “phony” credit debt collectors and debt settlement programs. Well, here’s another story for you that is tearing up the internet.

According to one of our favorite sites, GetOutOfDebt.org, The Attorney General’s Office and the Alabama Securities Commission are suing a Prattville attorney and the companies he is operating in what is alleged to be one of the largest debt settlement schemes in the nation involving approximately 15,000 customers and millions of dollars nationwide.

According to the complaint, Allegro and Nelms have solicited and obtained clients from all 50 states, many of whom made their selection believing they would be represented by a law firm. However, because Nelms is not licensed to practice law in any state other than Alabama, these consumers were deceived. Furthermore, Alabama consumers who believed they were hiring a law firm to represent them were also deceived, because Nelms and Allegro were actually serving merely as a conduit to refer cases that were handled by a third party, Americorp, which is not a law firm. In addition to these deceptive practices, Nelms and Allegro were not licensed by the Securities Commission, as required to conduct debt payment services in Alabama.

The complaint alleges that defendants have violated the Deceptive Trade Practices Act and the Sale of Checks Act. The Alabama Deceptive Trade Practices Act is designed to protect consumers by prohibiting business from committing a variety of deceptive practices including engaging in any “unconscionable, false, misleading, or deceptive act or practice in the conduct of trade or commerce.” The complaint alleges that the defendants violated the Deceptive Trade Practices Act as a result of various deceptive business practices and various false, misleading, and deceptive representations made to consumers. Under the Sale of Checks Act, any person engaging in a business that receives money as agent for obligors for the purpose of paying such obligors’ bills, invoices, or accounts must obtain a license from the Commission prior to conducting business in Alabama. The complaint alleges that defendants have breached their statutory duty to obtain a license pursuant to the Sale of Checks Act prior to engaging in the debt payment services business from their office.

That’s a lot of legal lingo, but basically what Allegro did, of the many things that Allegro did, was to advertise themselves as debt lawyers around the country, when in fact they only had the right to advertise their credentials in Alabama. They also charged outrageous fees and continued to charge these fees throughout the “debt settlement” process while clients saw no return and no settlement. They weren’t saving to pay off their unsecured credit debt, and they weren’t contributing to anything constructive to get them out of debt. Allegro was simply charging them fees, and keeping the money as profit.

Currently, Allegro Law is one of the top ‘debt settlement’ searches on Google, probably because there are thousands of Allegro victims trying to figure out how to get their money back.

Finding reliable and accredited debt settlement companies is a difficult task, especially in such a fraudulent ridden industry. But if you know what to look for, and the questions to ask, you won’t be stuck in a situation like the clients of Allegro. The most important step that you must take when thinking about debt settlement is do your research. If you can look the company’s history and track record up, then you should be able to determine if they’re trust worthy or not.

A huge indicator of whether the company is fraudulent or not is to find out of the company is registered with USOBA (United States Organizations for Bankruptcy Alternatives), a highly trusted organization that only registers reliable debt settlement companies, or Dun & Bradstreet, another organization that keeps track of many business.

Finding the right debt settlement company might take a little hard work, but when you are living financially free, it’ll be worth it.

For more information on how to find the best debt settlement programs, visit http://ping.fm/jZO23