Defaulting with a Litigation Group - Scam?
Posted by ravenouslywondering@reddit | studentloandefaulters | View on Reddit | 21 comments
Oh man, I should’ve came here sooner. During the end of 2020, I was unable to make payments. I had about $180k of private student loan debt. 1 account with Wells Fargo, which transferred over to Firstmark Services after WF’s student loan department closed. 4 with Sallie Mae, which was charged off to Mohela Pathway after May 2021.
This all started when I went on Google and searched how to get relief with Private Student Loans. Sallie Mae wouldn’t allow me to use anymore forbearances on any of my accounts. Wells Fargo would only let me defer another 2 months. I tried refinancing but couldn’t at all, no matter where I went. Even when I removed all my credit card debt ($3.4K at the time). My credit score was in the 650-675 range, but I could not find any options of consolidating my loans. It was hell. I was paying a total of about $1.8k of student loans per month, and on top of rent, bills, and 1 toddler.
Then I received a call from Litigation Practice Group who worked with student loan debts. I got quoted to pay $775/month for 3.5 years for them to act as my attorney and aid in this journey. That’s about $32,550 in total. But I figured it would be better than paying $1.8k per month. (Looking back now, what the hell was I thinking?) ANYWAYS, all was well for a bit but by the 2 year mark was when I started calling and asking questions regarding my loans. The Firstmark Services got closed — but the amount still shows in my credit report. The 4 accounts with SallieMae -> Mohela Pathway were still open, defaulted.
Eventually LPG sent an email out saying that OakStone Law Group was taking over. This was February 2023, after making contact twice and not able to speak with my account manager — they ghosted me. Then May 2023 comes along, and I receive another email that Phoenix Law Group has taken over OakStone’s clients. I have called twice, and each time the account manager will call me back or is busy. Now they won’t pick up ANY calls.
I’ve been reading a lot of the stories here about defaulting… and I haven’t seen anything about anyone else paying a litigation group to assist. Have I been scammed? I could’ve just defaulted on my own without paying a law firm?! Help..
Another question, I live in California. The SOL follows the state where I live or does it depend on the company?
TLDR: I signed up for a litigation group to help with defaulting on my student loans.. Did I even need to do that? Has anyone else been in this predicament?
Ok_Cable6664@reddit
The ceo of lpg took the fall of the who law firm scam forsure bc he pretty much bought a slush fund expensive ass mansion with the clients' money. His acting president whose name was never mentioned on the website was the real culprit though. She wasn't even practicing law and used her sister's law account to pretend to be her and give legal advice.
She went under the radar and got away with a bunch of shit and is probably responsible for all of the other collection companies like Phoenix and oak tree or whatever because those were the same companies that lpg took over. They disguised themselves under another head company idk the name of.
But the people who you want to be searching for are named Han trinh and jayde trinh. But the person who was behind the whole scam would be Han.
Good luck.
ravenouslywondering@reddit (OP)
At this rate, I don’t think I’ll ever see my money again. Hope long have you followed this story?
Comfortable_Hat_3029@reddit
Oh man. The history of morning law. These people are crooks there’s an article I believe in the New York Times about five months ago about him. I got on the phone with the owner and read it to her. She said she had no clue about that. Never never heard such a thing until I got to the part where she is quoted in the story and I was like you remember that now ya jack a$$ lol sorry for all your confusion. 85K deep here myself no judgments.
OwlOk459@reddit
Can you share that NYT article please and also who was the owner you spoke to ?
Mission-Musician-448@reddit
Please help 😭
ravenouslywondering@reddit (OP)
I really don’t know how to help! I’m sorry. If you’ve been served papers it’s best to lawyer up.
Mission-Musician-448@reddit
Has anyone figured out what to do? My account was at LPG then got an email saying I was being transferred to Morning Law but have yet to receive anything from them. Now I got served and being sued by a collector
ravenouslywondering@reddit (OP)
Definitely look for a different law firm. If morning law isn’t responding. LPG was fraudulent and allocated the funds elsewhere. They then had these law firms take over accounts without authorization from clients. You could try giving them a call, you will get the run around.
barbadillo96763@reddit
I’m in the same situation as you. I finished paying about $30K and now getting summons to appear in court and no one from Phoenix Law is answering my emails…what have you done? Do we just say good bye to all that money we paid?
ravenouslywondering@reddit (OP)
I think so. You should’ve opted out of Phoenix law and find other lawyers. They’re just taking over for LPG. Not sure how trustworthy that firm could be.
Project-Seeker1@reddit
I signed in with LPG for credit dept. Just dept. Not default. Well first month they billed me 4 times instead of once. I Have been chasing my money since. I'm sure you have all seen the news about LPG being a possible Ponzi Scheme. The CEOs lead guy or "manager" was supposedly the one ripping people off but that's BS the CEO.. come on he was mostly likely directing the whole thing. I guess Thai Cars is an actual attorney who was/is at Phoenix Law group and I've read ro call him and demand my money which I will as soon as I get the right number, and I will. These guys had million dollar investors. We're small potatoes. Buy not if you are a persistent sob who can't tolerate when people try to beat me. Which I am, you've guessed. Call the court where LPG has filed chapter 11 to avoid litigation. Ask for the D.A. keep calling, talk to your congressman. IM NOW BEING SUED BY TWO CREDITORS I was in good standing with before these clowns said they'd take care of everything. I bet they have one lawyer per 100 employees. One employee is speaking out and helping others. I googled- I want my money back from lpg and Phoenix law and I saw his site. Stay on em.
Happy hunting P.O
ravenouslywondering@reddit (OP)
How’s everything going so far?
Project-Seeker1@reddit
Well thank you for asking I am filing Chapter 7 bankruptcy it just so happens that my situation right now is the perfect situation to use that to eliminate all of my debt and get my credit back in line the fastest I'm guessing I'm not sure how Reddit works exactly like they say you have to have a certain amount of time or something like I've asked a couple of questions and I don't know how to get the answers but you're in the IBEW right are you an apprentice?
ravenouslywondering@reddit (OP)
Not sure what an IBEW is but no, I’m not an apprentice for anything.
Project-Seeker1@reddit
Oh no I see I was in a litigation Group scam group I'm trying to figure out I'm in the IBEW in electrician and I'm trying to ask a question in the page or the the thread and I guess they got rules about how long you got to be in there before they can answer I don't know but thank you for reaching out man that was nice to get asked
Ca_gurl007@reddit
Have you all received emails from the Bankruptcy trustee? I’m trying to find out how to get my file from Morning Law so I can file a claim. They tell me they will send it and don’t follow through.
ravenouslywondering@reddit (OP)
No… I thought it was a guy named Richard Marshack but not sure. I don’t understand all the terms and get confused.
Ca_gurl007@reddit
I was receiving emails from someone named Pam Krause, who works with Marshack, Hays who are the Trustee’s apparently. She has tried to help with sending me a link to file a claim, but I need my file to do so and there is a deadline. I have also received emails from Dinsmore & Shohl LLP - Legal Counsel, but I need a paralegal to help me understand everything.
ravenouslywondering@reddit (OP)
Oh man.. I’m barely reading this now. Life got hectic and I figured I’d never see my money again. How did everything go?
Specific-Cupcake4140@reddit
wow same thing is happening to me now Phoenix is selling their files to Morning Law Group. I’m disgusted I’ve paid over $13,000 I think almost what I owed. I was told all that money would go to paying my debts. I was sent a form from a phoenix about filing a claim against LPG but it’s so confusing. I’m calling my bank and seeing what I can do.
ravenouslywondering@reddit (OP)
I’m also unsure of what I can do too… maybe I should reach out to my bank.