Press Release

For Immediate Release
Contact: Cara Smith
877-844-5461 (TTY)
January 3, 2007


ChicagoIllinois Attorney General Lisa Madigan today filed a lawsuit against a Chicago debt collection agency for allegedly using unfair tactics, intimidation and misrepresentations to convince consumers to make payments when, in some instances, the consumers never owed the money.

The lawsuit names Leading Edge Recovery Solutions, L.L.C., as the defendant.  Leading Edge Recovery Solutions, an Illinois limited liability corporation based in Chicago, collects debts on behalf of various entities, including credit card and installment debts.

Madigan’s Consumer Protection Division has received 53 complaints against Leading Edge Recovery Solutions.  According to these complaints, consumers made payments ranging from $300.00 up to $2,900.00 and, in some instances, Leading Edge Recovery Solutions deducted payments directly from consumers’ bank accounts without the consumers’ authorization.

“Based on the numerous consumer complaints that we have received, Leading Edge Recovery Solutions and its representatives have harassed and intimidated consumers in Illinois and throughout the United States to obtain payments on alleged debts,” Madigan said.

The lawsuit, filed in Cook County Circuit Court, alleges that Leading Edge Recovery Solutions has attempted to collect on debts that are as much as 20 years old and, in some cases, are not even owed by consumers.  When consumers have responded to contacts from Leading Edge Recovery Solutions by requesting proof that they actually owe the debt, the company has failed to provide such proof.

Madigan alleges that as part of its collection efforts, Leading Edge Recovery Solutions sent collection letters and contacted consumers by telephone, often using abusive language or improperly contacting consumers at their places of employment.

The complaint specifically alleges that representatives of Leading Edge Recovery Solutions made numerous misrepresentations during their collection efforts, including:

  • That they are attorneys and that the company would file a lawsuit if the debt is not paid;

  • That the company would file a lien against the consumer’s property if the debt is not paid;

  • That the consumer could be arrested or imprisoned for failing to pay the debt;

  • That the consumer’s wages would be garnished if the debt was not paid; and

  • That the company would take other actions that would have an adverse impact on the consumer’s credit report if the debt is not paid.

Madigan’s lawsuit asks the court to prohibit Leading Edge Recovery Solutions from engaging in the business of collecting or attempting to collect on debts, and from further violating Illinois’ consumer protection laws. The lawsuit seeks civil penalties and requests that the court order Leading Edge Recovery Solutions to pay restitution to consumers.

Assistant Attorney General Janice Parker is handling the case for Madigan’s Consumer Protection Division.


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