Five Lakes Law Group Review: Debt Relief, But May Be Costly

Is Five Lakes Law Group legit?

Yes, Five Lakes Law Group is a legitimate debt settlement law firm based in Southfield, Michigan. It was founded in 2021 and claims to have helped 150,000 clients to date. It’s accredited by the Better Business Bureau (BBB) and has an A+ rating.

However, just because it’s a legit company doesn’t necessarily mean it’s your best option. You may want to compare the best debt relief firms to help you make a more informed decision. Or, if you do decide to go with Five Lakes, be sure to carefully review your agreement and understand the fee structure and other program details.

Where Five Lakes Law Group falls short

While Five Lakes Law Group doesn’t disclose its rates on its website, numerous customers report rates of 27%. This rate is higher than most other debt settlement firms, which typically charge between 15% to 25%.

The company also isn’t transparent about how the process really works. For example, a debt relief program requires you to stop making debt payments, it hurts your credit score and you could be sued, among other risks. To be fair, these dangers are true of any debt settlement company, but Five Lakes barely skims the surface of potential drawbacks to the program.

What makes Five Lakes Law Group shine?

Not much about Five Lakes Law Group stands out against similar providers, although it offers some type of attorney support. This feature could give it a slight edge against companies that don’t offer legal counsel, and it might explain the higher cost. But there doesn’t seem to be much evidence that Five Lakes has had more success than any other well-known debt relief firms, such as National Debt Relief or Freedom Debt Relief, for example.

Five Lakes also says it could be able to lower your monthly payments by 40% or more. If you’ve been struggling to make your debt payments and pay your essential bills, this could free up extra cash and give you some breathing room.

How much can I save?

The company doesn’t state any projected savings on its website, but customers say they were told they could save as much as 50% off their enrolled debts. But that doesn’t include fees, so if you’re charged 27%, you would only see a savings of 23% — at the most. And it’s important to keep in mind that the fee is a percentage of how much debt you enrolled, not the amount you settle on.

How much does it cost?

Again, Five Lakes Law Group doesn’t disclose rates on its website, but customers report fees as high as 27%. In fact, 27% is the only rate ever mentioned. For context, if your enrolled debt is $50,000, your fees could be as much as $13,500.

You may also be charged an account maintenance fee, which is usually around $10 a month.

Will Five Lakes Law Group hurt my credit?

Yes, enrolling with Five Lakes Law Group will damage your credit, just like with any other debt settlement company. This damage happens because you have to stop making debt payments before creditors consider negotiating a lower settlement. Those late payments are then reported to credit bureaus and can stay on your report for up to seven years.

Five Lakes Law Group details

Five Lakes Law Group contact info

How to qualify for Five Lakes Law Group

Five Lakes doesn’t specify the exact requirements, but these are the typical qualifications needed:

• $10,000 in unsecured debts
• Live in a state where Five Lakes operates

How the debt settlement process works

Five Lakes Law Group doesn’t outline the debt relief process, but here’s how it generally works:

1. Call to set up a free initial consultation.
2. Chat with a company representative, who helps you come up with a plan based on how much you owe and how much you can afford to pay each month.
3. Make payments to a dedicated account, similar to an escrow account.
4. Wait while the firm negotiates with creditors on your behalf and pays settlements from your account, minus its fees.

How Five Lakes Law Group compares to other providers

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Finder Score	Costs	Money-back guarantee:	Requirements
Promoted Finder score 9 Excellent Accredited Debt Relief	Finder score 9 Excellent	Charges and fees vary by the company you're ultimately connected with	No	Must be at least 18 years old and a legal US resident; additional terms may apply based on services and products used.	This A+ BBB-rated service offers free consultations to lower your monthly payments help you get out of debt faster.	Go to siteMore info Compare product selection Compare	loading
Finder score Not scored yet Freedom Debt Relief	Finder score Not scored yet	Monthly payment based on enrolled debt, no upfront fees	Yes	Must have at least $7,500 in unsecured debt, have a hardship is preventing the ability to pay creditors, and live in a serviced state.	Freedom Debt Relief works to help people with unmanageable, unsecured debt get back on their feet.	Go to siteMore info Compare product selection Compare	loading
Finder score Not scored yet National Debt Relief	Finder score Not scored yet	15–25% of total enrolled debt	Yes	Must have a legitimate financial hardship which is preventing the ability to pay creditors and a minimum of $7,500 in debt.	Get back on your feet with a top-rated company that works with multiple types of debt.	Go to siteMore info Compare product selection Compare	loading
Finder score 7.6 Great Happy Money	Finder score 7.6 Great	APR ranging from 7.95% to 29.99%	No	Must have a FICO score of 640+, no current delinquencies, at least 3 years of credit history and a debt-to-income ratio of no more than 50%. No more than 1 installment loan and no delinquencies over 90 days in the past year. Must live in a state where Payoff offers loans; check availability.	Pay down your debt with a fixed APR and predictable monthly payments.	Go to siteMore info Compare product selection Compare	loading

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What is the Finder Score?

The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

Read the full breakdown

Five Lakes Law Group reviews and complaints

Five Lakes Law Group is highly rated on both the BBB and Trustpilot. Customers point to friendly and helpful customer service representatives and express relief at having help to manage their debts. However, it’s worth noting that most of the best reviews seem to be from clients who have recently signed up or are relatively early in the process — not those who’ve completed the program.

There are also a fair number of negative complaints, many of which are lengthy and detailed. Not surprisingly, customers complain of high fees, which are frequently stated as 27% of the enrolled debt.

Beyond that, many felt the firm misled them, didn’t reduce their debts as much as expected and weren’t transparent about fees and the process. And some say they’ve had trouble canceling the program and getting a refund. There were also several comments saying that due to the high fees, they ended up worse off than before they enrolled.

Risks to debt settlement

Understand these key risks before signing up for any debt relief program.

• Increased debt. Late fees and interest continue to add to your debt after you stop making payments — a requirement of the program.
• Potential lawsuits. There is a very real possibility that creditors will choose to take you to court rather than settle.
• Income taxes. The money you save from debt settlement is typically considered taxable income.
• No guarantees. Debt relief firms do not guarantee that your creditors will settle for less than you owe, and you could end up in worse shape than before.
• Damage to credit. Your credit score will take a hit from debt settlement, although the severity depends on what your score was to begin with.