What's Happening?
A woman from metro Atlanta paid $7,700 to Turnbull Law Group, a debt relief company, only to find that $6,600 of that amount went towards fees rather than reducing her debt. The woman and her husband fell behind on credit card payments after relocating
to Atlanta, which led her to seek help from the firm. Turnbull Law Group, based in Chicago, charges 28% of the total debt as fees, a structure that is not permitted under Georgia's Debt Adjustment Act. However, the firm claims an exemption as a law firm. The woman has filed complaints with the Georgia Attorney General’s consumer protection division and other legal associations, disputing the number of debts resolved. Turnbull Law Group maintains that they have effectively represented the client and plan to address her concerns directly.
Why It's Important?
This case highlights the potential pitfalls consumers face when engaging with debt relief services, particularly those that operate under legal exemptions. The fee structure used by Turnbull Law Group, while legal for law firms, can lead to significant financial strain for clients who may not fully understand the implications. This situation underscores the importance of consumer awareness and the need for regulatory scrutiny to protect individuals from potentially exploitative practices. The broader impact on society includes increased financial stress for consumers and potential legal challenges for firms operating in this space.
What's Next?
The Georgia Attorney General's office is currently investigating Turnbull Law Group, which could lead to legal action or changes in how such firms operate within the state. Consumers are advised to negotiate directly with creditors or seek free services from organizations like the National Foundation for Credit Counseling. The outcome of this investigation may influence future regulatory measures and consumer protection laws, potentially affecting how debt relief services are offered nationwide.
