Montgomery, Ala. (WSFA) -- A Prattville attorney is in hot water with Alabama's attorney general over an alleged debt settlement scheme. Attorney General Troy King and the Alabama Securities Commission have filed a civil suit against Keith Anderson Nelms and the companies he operates, Allegro Law, LLC, and Allegro Financial Services, LLC.
The State's civil complaint alleges that Allegro promoted a risky practice known as debt settlement, in which consumers stop making monthly payments hoping to encourage creditors to write off the debt, reclassify it as less collectible, and agree to settle for a greatly reduced payment.
According to the complaint, Allegro and Nelms have solicited and obtained clients from all 50 states, many of whom made their selection believing they would be represented by a law firm. Nelms is not licensed to practice law in any state other than Alabama, which is why the State believes these consumers were deceived.
The Attorney General's Office and the Alabama Securities Commission are seeking a permanent injunction, civil penalties, and other relief. The Alabama Deceptive Trade Practices Act authorizes civil penalties of up to $2,000 for each act or practice found to be in violation of the Act.