The Consumer Financial Protection Bureau announced today that it had filed a lawsuit and received a temporary injunction against World Law Group for allegedly charging 21,000 consumers $67 million in fees in a debt-relief scam.
The complaint alleges that World Law Group, operating through a labyrinth of companies, offered to negotiate debt settlements on behalf of consumers. The consumers were advised to stop paying their bills and instead send the money to World Law Group’s companies instead. World Law Group kept many of the payments as upfront fees before paying any creditors.
World Law Group is alleged to have charged a $199 initiation fee, an attorney fee of $85 per month, and legal service fees ranging between 10% and 15% of the outstanding debt amount. The company also promised legal representation that it did not provide.
Click here to read a copy of the complaint.