NoteWorld Litigation
The Paynter Law Firm filed a class-action lawsuit against NoteWorld, LLC, a major player in the debt settlement industry. The industry, which purports to help indebted consumers "negotiate" with their creditors to lower their debts, has been criticized in recent years by many consumer advocates, as well as the Federal Trade Commission ("FTC") and the Government Accountability Office ("GAO"), for widespread allegations of fraud and abuse. The lawsuit, brought by a North Carolina consumer, alleges that NoteWorld violated the federal Racketeer Influenced Corrupt Organizations ("RICO") Act by conspiring, along with scores of "front-end" debt settlement companies, to defraud indebted consumers by falsely representing their services, the fees they would charge, and other important facts. The complaint also alleges that NoteWorld’s actions violated Washington State law by charging illegal fees and failing to disclose important information to consumers. The lawsuit seeks to represent all consumers who have established NoteWorld accounts related to any debt settlement program. The Paynter Law Firm is co-counsel in this action with the law firm of Hagens, Berman Sobol & Shapiro LLP.For a copy of the complaint, click here.
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