Pennsylvania Attorney General Secures Settlement Over Deceptive Debt Settlement Practices

Settlement© ftwitty / Getty Images Signature / Canva

HARRISBURG, PA — Pennsylvania Attorney General Michelle Henry announced a settlement this week with attorney Erik M. Helbing, his law firm Helbing Law, LLC, and Consumer Law Relief, LLC, which also trades as Helbing Law Group, LLC. The settlement addresses allegations of deceptive advertising and failure to deliver promised debt settlement services.

The businesses targeted consumers in Pennsylvania and beyond, advertising their ability to reduce debts through negotiation or litigation. Despite these promises, Helbing and his businesses failed to deliver the promised services, often after taking unlawful advance payments from customers. Adding to the alleged deceit, many consumers were under the impression that attorneys were handling their accounts. In reality, non-attorney call center representatives were often assigned to manage these cases.

Under the terms of the settlement, the Helbing entities will pay $25,000 in restitution to affected consumers, along with an additional $10,000 in penalties and costs. Prior to reaching the settlement, the businesses had already cooperated with the Commonwealth authorities and issued at least $50,000 in refunds to consumers. Additional consumers who believe they have been wronged by these firms may be eligible for further restitution and are encouraged to file a consumer complaint by April 23, 2024.

Attorney General Henry expressed her commitment to protecting consumers, stating, “Impacted consumers were in financial distress and needed a professional they could trust to assist them with debt. Instead, they were scammed by businesses that did not follow through on their promises.” She continued, “If Pennsylvania consumers pay for goods or services and get nothing in return, our office will fight for those victims.”

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The settlement also prohibits Helbing and his businesses from violating the Unfair Trade Practices and Consumer Protection Law, the Debt Settlement Services Act, and the Telemarketing Sales Rule. This legal action underscores the state’s commitment to protect consumers from deceptive practices and hold businesses accountable for their actions.

The settlement was filed in the Lehigh County Court of Common Pleas by Senior Deputy Attorney General Amy L. Schulman of the Pittsburgh Regional Office, marking a significant victory for consumer rights in Pennsylvania.

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