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New Jersey woman claims National Legal Center was not licensed in her state to perform debt services

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Saturday, November 23, 2024

New Jersey woman claims National Legal Center was not licensed in her state to perform debt services

Federal Court
Debt

CAMDEN, N.J. (Legal Newsline) – A New Jersey woman is claiming a New Hampshire law office conducted illegal debt adjustment and money transactions as part of its debt settlement services. 

According to the filing in the Superior Court of New Jersey Burlington County, Caren Frederick,  on behalf of herself and other class members, filed a complaint against the Law Office of Fox, Kohler & Associates PLLC LLC, formerly known as National Legal Center PLLC; Arthur M. Kohler; Roseanna Fox; Commercial Bank; Global Client Solutions LLC; and John Does, alleging violations of New Jersey's RICO Law, Consumer Fraud Act, and Debt Adjustment and Credit Counseling and Money Transmitters Act. 

The plaintiffs also allege civil conspiracy, illegal contract, unjust enrichment and unconscionability. 

Frederick alleges she signed an agreement with the defendants for debt settlement services in June 2013 that included Frederick allowing $637.62 per month to be withdrawn from her account and put into an escrow account. According to the suit, the funds were held by Global Client Solutions who, between the end of June 2013 and April 2017, withdrew $29,705.28 from Frederick's account and only released $14,385.30 to her creditors. 

The plaintiff also alleges the defendants' services were not provided by attorneys or licensed debt adjusters who were authorized to practice in the state, according to the suit. 

The plaintiff seeks compensatory and punitive damages as well as treble damages, attorney fees, costs, and litigation expenses. 

The plaintiff is represented by Polino and Pinto in Moorestown, New Jersey.

The case was transferred to the U.S. District Court for the District of New Jersey by the defendants on July 26.

U.S. District Court for the District of New Jersey case number 1:19-cv-15887

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