HATTIESBURG, Miss. (Legal Newsline) – The state of Mississippi alleges several debt management service providers lured consumers into programs that aren't "viable" options to resolve debt.

State of Mississippi, ex rel. Jim Hood, attorney general of the State of Mississippi, filed a complaint on March 19 in the Chancery Court of Hinds County, Mississippi against Global Client Solutions LLC; Global Holdings LLC; US Legal Services Group PC, et al. over alleged violation of the Mississippi Consumer Protection Act and Mississippi Debt Management Services Act.

According to the complaint, the plaintiff alleges that "the defendants are preying on Mississippi consumers by luring them into a debt management program the defendants know is not a viable option for resolution of consumer debts."

The plaintiff claims the defendants market their debt management program as a low-cost/affordable debt management option, when allegedly their up-front fees only ensure the defendants "benefit from the program regardless of the result for the consumer," the suit states.

The plaintiff holds Global Client Solutions LLC; Global Holdings LLC; US Legal Services Group PC, et al. responsible because the defendants allegedly misled Mississippi consumers with representations that were false and took fees under the guise of providing legal services.

The plaintiff seeks an order for the defendants to pay a reasonable civil penalty for each violation, pay attorneys' fees, costs of action and such other relief as the court deems just and equitable. It is represented by John Corlew of Corlew Munford & Smith PLLC in Jackson, Mississippi.

The defendants removed the case to the U.S. District Court for the Southern District of Mississippi on May 2.

U.S. District Court for the Southern District of Mississippi, Hattiesburg Division case number 3:18-cv-00371

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