Debt Settlement Co. Gets Suit Over Fees Sent To Arbitration

Law360, New York (June 11, 2012, 9:48 PM EDT) -- A New Jersey federal court on Monday sent to arbitration class claims that a debt settlement company violated state consumer protection laws and federal bankruptcy provisions in the fees it charged financially struggling customers, finding the plaintiffs' contracts held valid arbitration provisions.

In June, Mercer County resident Dora Smith filed a putative class action against Legal Helpers Debt Resolution — also known as Macey Aleman Hyslip & Searns law firm — and Global Client Solutions LLC of Oklahoma. The complaint alleges that the firms' up-front fees,...
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