There is a class action lawsuit pending in the U.S. District Court for the Western District of San Antonio against Debt Relief Group, LLC, and some alleged associates or associated entities including The Palmer Firm, PC, The Seideman Law Firm, PC, Epic Financial Management, Robert Ancel Palmer, III, Scott R. Seideman, Gregory M. Fitzgerald and Keith J. Waring (CIVIL ACTION SA09CA0637).

The gist of the allegations is that the Defendants operate a "debt settlement company" in violation of the Texas Finance Code, Chapter 394, Consumer Debt Management Services. The suit says: the Defendants operate an elaborate nationwide scheme promoted by television and internet advertising to defraud debtors that are drowning in credit card and unsecured debt. By masquerading as attorney referral services, unregulated debt negotiators and exempt attorneys, the Defendants collaborate to evade strict state consumer protection regulations enacted to protect unknowing debtors."

Folks, like I tell the prospective clients that come and consult with me, most if not all of these debt settlement companies are operating illegally in the State of Texas. And if they are operating illegally FROM THE GET GO, it's not going to be a stretch for them to take your money and leave town, or file bankruptcy, both of which have happened. In either event, you are likely out of luck. The law regulating these companies has strict requirements, including putting up a bond, being a non-profit organization, making detailed disclosures to consumers, and many others, which the shady ones are not going to comply with.

The law also requires that these companies register with the Texas Consumer Credit Commissioner. If you live in Texas, all of the ones that are not registered that you see advertising to you on TV and so forth are operating outside the law, if they are not on this list. If you are in serious credit card debt, or other types of debt, come see an expert bankruptcy attorney such as myself.

I discuss bankruptcy but I also discuss all of your options with you, as they relate to your particular circumstances. One option that I talk to all my clients about is settling with your creditors, but it is only one option out of five options, and frankly, it has some bad points to it, which I will discuss with you if you come in to see me. I offer a free consultation to consumers with debt problems that live in the Houston, Texas area or surrounding counties. To make an appointment, please call my office during working hours at 713-772-8037.

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