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Maine Settles with Debt Management Companies
12/18/2012 02:23 PM ET  

Maine Attorney General William Schneider says The Mortgage Law Group and Legal Helpers Debt Resolution misled consumers about the benefits of enrolling in their programs.

The state of Maine has reached settlements with two affiliated Chicago companies that were offering debt management services in Maine.

Officials with the Maine Attorney General's Office and the Bureau of Consumer Credit Protection say that The Mortgage Law Group and Legal Helpers Debt Resolution had no offices in Maine, but had established partnerships with several attorneys licensed in Maine.

Schnieder says many Maine consumers never met or spoke with an attorney when they enrolled in the programs, and were misled by claims about their benefits. Both Legal Helpers and Mortgage Law denied violating any Maine laws.

Under the settlements, the companies agreed not to enroll any more Maine consumers in their programs, and will stop charging monthly fees to those who remain enrolled. They also paid $250,000 in restitution, which will be distributed to 300 Maine consumers.

In addition, the companies paid $15,000 to reimburse the state for some of its investigative and administrative expenses.



 

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