"Plaintiffs further allege that Pre-Paid Legal Services operates an unlawful pyramid sales scheme."
lieffcabraser.com
Business Week
"Pre-Paid laid out $1.5 million in 2001 to settle a series of suits from customers in Alabama who claimed that it overstated the amount of legal coverage it offered. Since then, at least 20 new cases involving 113 former customers and salespeople have been filed in that state.."
""Members are not given sufficient information to know what they are buying," says..."
"The recurring theme in the litigation is that Pre-Paid's salespeople overstate what its membership contracts cover."
"Pre-Paid had been booking commissions advanced to salespeople as an asset rather than expensing them in its earnings."
businessweek.com
Forbes
"Pre-Paid Legal Services, an Ada, Okla. firm that insures individuals against legal expenses, has a peck of legal problems itself."
"If your operations are heavily dependent on an individual or business as a leading recruiter, you need to disclose that material fact in financial filings, especially if there have been repeated commercial fraud sanctions."
"Top recruiters listed as such in Pre-Paid's in-house magazine The Connection have legal problems of their own."
forbes.com
ClarionLedger.com
However, the company has fallen under the scrutiny of the Consumer Protection Division of the state attorney general's office.
"We have a pending investigation," acknowledged Assistant Attorney General Michael D. Rhodes, director of the Consumer Protection Division. He said the attorney general's office is primarily looking at the company's advertising that it provides certain services, but offers a disclaimer.
clarionledger.com
Market Wave
"The attorney PPL assigned to be demanded $250 to cover his expenses, which PPL customer service claimed was within his rights and not part of what PPL covered (even though the filing fees was allegedly only $60)...A PPL attorney called me and within two minutes informed my that I needed to "look in the phone book" and find a local attorney knowledgeable of literary law. He refused to even hear my questions."
marketwaveinc.com
Pyramid Scheme Alert
In its annual report to the SEC, Pre-Paid Legal...revealed that more than 1/2 of all its customers and distributors quit each year and are replaced by another group of hopeful investors
www.pyramidschemealert.org/resources/tenlies2.htm
The Street
"As for the selling part, Pre-Paid looks like a knockoff of Amway"
"A company filing shows only 29% of the customers keep their policies going for three years or more. But a suit alleges Pre-Paid told agents the three-year retention rate was more than 70%."
"Customers supposedly get a 25% discount on attorney fees for excluded items--but there's nothing to stop participating lawyers from hiking their rates"
thestreet.com
"Pre-Paid describes itself as a "legal HMO,"...But some dismiss this comparison as nonsense...Judging from the rising stack of lawsuits, Pre-Paid customers increasingly believe the product provides a less attractive deal for themselves."
thestreet.com
"Pre-Paid faces its first trial five months from now in Paulding, Miss., a small town in the southern part of the state. The company has been slapped with a total of nine lawsuits, each seeking $90 million in damages, in Mississippi state courts known for delivering runaway jury awards. The plaintiffs claim they were misled about the coverage provided under Pre-Paid's restrictive legal policies."
thestreet.com
Dow Jones Business News
"Pre-Paid Legal Services Inc...which provides discount legal advice to New Yorkers, has been reported to the U.S. Securities and Exchange Commission for not disclosing that it paid fees to a magazine that subsequently recommended its stock"
biz.yahoo.com
NYPost
"Using Forbes issues dating back to 1998 to endorse this company's credibility is akin to a restaurant posting yellowing, 4-year-old reviews in the window," Begley said. "The practice may not be illegal, but certainly it is not very credible to the consumer." What's more, she added, PPD "conveniently neglects to mention a July 8, 2002, Forbes article that was very critical of the company's operating tactics."
nypost.com
Jeff Ginter
"This proves to me that prepaidlegal doesn't care about the service, it's not about ' leveling the playing ground' nor helping to make justice affordable to The American Middle Class, it seems to be just another multi level marketing scheme . "
prepaidlegalsucks.com
You may wanna listen to The Attorney General...
The Attorney General's office recommends that consumers avoid multi-level marketing (MLM) programs that
· emphasize recruiting
· claim to make money through continued downline growth
· claim to sell "miracle" products or emphasize enormous incomes
· require you to pay a fee to participate
· sign a contract at an "opportunity" meeting or similar high-pressure situation
216.239.51.100 |
