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Debt relief company takes almost $1M from Oregon consumers

On Behalf of | Aug 9, 2013 | Credit Card Debt

Debt can be an intimidating thing to face. Some people choose to deal with their financial challenges by working with a debt relief company. As hundreds of people recently discovered, however, not all debt relief companies live up to their promises.

A Texas-based company known World Law Debt claims to negotiate directly with creditors on behalf of their clients. In reality, they take a large portion of their client’s money and keep it for themselves. An employee for the company admitted that he lies to people every day on the phone by telling them they can figure out a plan to deal with creditors. A man from the Oregon Department of Justice stated that 425 people from the state of Oregon put a total of more than $1.5 million in escrow accounts with the company. World Law Debt kept more than $960,000, giving approximately $275,000 to creditors. 

The Oregon Attorney General is seeking more than $10 million in damages against the company and is attempting to ban them from doing business in the state. Additionally, he would like to see reimbursement made to every Oregon consumer, including a hazelnut farmer who was promised that she would only have to pay a third of the amount of her credit card debt. She is just one example of hundreds of Oregonians who were promised debt relief and did not receive it.

If you are facing overwhelming debt, you have options. One of those options of filing for bankruptcy, which can eliminate your credit card debt. If you would like information about personal bankruptcy, a lawyer may be able to help.

Source:, “DOJ seeks $10M in damages from Texas debt-relief company,” Chris Willis, July 18, 2013


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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 22 years.