TOPEKA, Kan. (Legal Newsline) - Kansas Attorney General Derek Schmidt announced a court order on Friday against a Florida business, banning it from doing business in the state of Kansas.
"Out-of-state companies who wish to do business in Kansas must comply with the consumer protection laws of our state," Schmidt said. "Our office continues to crack down on companies that engage in fraudulent activity and illegal business practices."
Advocate Claims LLC, also known as Advocate Auto Consultants LLC, is banned from soliciting, advertising or selling any goods, service or property in Kansas under the terms of an order issued in Shawnee County District Court. Advocate Claims must also pay a $30,000 civil penalty. The judgment, issued by Judge Larry Hendricks, resolves a lawsuit filed by Schmidt's office that alleged the company violated the Kansas Consumer Protection Act.
Schmidt's office alleged that Advocate Claims engaged in deceptive business practices and the unlicensed practice of law. The company allegedly implied that it consisted of attorneys representing at least one Kansas consumer in connection with the consumer's auto insurance claim.
Advocate Claims allegedly wrote several letters to a nationally recognized insurance company demanding payment for the loss the consumer experienced. The letters allegedly cited Kansas Supreme Court decisions and stated that the company represented the Kansas consumers connected to the claim. The company does not actually employ any attorneys licensed to practice law in the state of Kansas.