NC Attorney General Among Those Settling With J.K. Harris

If you Google “J.K. Harris”, the website for the tax debt firm is followed closely by websites filled with consumer complaints with the company. As reported in the Associated Press article: 18 state Attorney Generals settled with SC tax debt firm numerous state Attorney Generals settled with J.K. Harris with both a monetary settlement and an agreement with the company to change it’s advertising practices. Complaints against the company included unfulfilled promises for tax help, taking money from consumers without knowing if they could be helped, and refusing refunds if they couldn’t be helped.

Complaints against the company on various websites included being garnished by the I.R.S. while working with the company, being passed from rep to rep, promises of offer in compromise with the I.R.S. that never materialized, and other frustrations. The problem with a company like J.K. Harris is like many other companies that promise to settle any debt, the offer to settle debts often begins by collecting funds from consumers to pay their own fees first, without any legal assurance of protection for the consumer. However the creditor that J.K. Harris is dealing with is the Internal Revenue Service and the I.R.S. packs a much stronger punch than many creditors.

According to the Associated Press article,

JK Harris charged money upfront for this service without actually determining if consumers qualified for an OIC or while knowing that consumers in fact didn’t qualify, the complaint alleged.

The complaint said the IRS accepts only a small number of these kinds of cases. In many cases, JK Harris did not even apply to the IRS to assist consumers as promised, and refused to give those consumers their money back.

The statement said that under the terms of the consent judgment, JK Harris must make clearer disclosures to consumers and refund them if the company is not able to work out a compromise with the IRS.

The company must tell consumers under what circumstances they might qualify to reach a compromise with the IRS on back taxes and provide an accurate percentage of how many OIC offers the IRS accepts. The company must also refund consumers money if the IRS does not accept their case.

The statement said the judgment also applies to JK Harris Financial Recovery System LLC and Professional Fee Financing Associates LLC, both owned by John K. Harris.

States participating in the judgment along with Massachusetts were Arkansas, Arizona, California, Connecticut, Florida, Illinois, Maine, Michigan, Minnesota, New York, North Carolina, Ohio, Pennsylvania, South Dakota, Tennessee, Vermont, and West Virginia.

Bankruptcy may provide better protection, and often gives better or similar results than many attempts to settle debts. There are many protections afforded for tax debt in bankruptcy, as well as other debts. Chapter 7 may write off the debt completely, as might Chapter 13 bankruptcy, or Chapter 13 might provide government backed protection from collection efforts while the consume is making payments. In order to compare what can be done, consult with a licensed attorney who is knowledgeable about the debts that you are having problems with, and also with consumer bankruptcy law.

See also:

“Debt Management Programs”―Better Than Bankruptcy? by Brett Weiss, MD Bankruptcy Lawyer BankruptcyLawNetwork June 15, 2008

Debt Settlement Agencies: For Most, a Trap to be Avoided by Craig Andresen Minnesota Bankruptcy Attorney, posted on BankruptcyLawNetwork May 20, 2008

Cathy Moran CA Bankruptcy Attorney: Tax Relief In Bankruptcy

By Susanne Robicsek, Consumer Bankruptcy Attorney in Charlotte NC