Prepaid Legal Services Scam - The Truth
By Brandon Schlichter
CEO of 1337 Ventures Inc and the “No Scam Newsletter”
Prepaid legal is a company that has existed in one form or another since the early part of
1972. Over the years, many many people have bought into their services, and a quick
look on any search engine will tell you that there are plenty of good reviews and bad
reviews. The purpose of this article is to shed light on what some call a scam , while
others call it a absolute life saver.
First off , pre-paid legal is a network of approximately 50 different law firms that exist
in the US and Canada. Recently, they have also branched over into the realm of identity
theft and market anti-theft services for that market.
One of the first things that one will notice about Prepaid Legal's company structure is
that they do not sell their service at malls , or online, but it is through what many would
call a 'Multi-Level Marketing' type of scheme. This of course brings up personal
memories of Kriby vacuum salespeople, and Amway to myself, which have both left a
sour taste in my mouth.
Due to the fact that for all purposes Prepaid Legals structure is a MLM, many associate
it with a scam. This however is not always a justified response to what their company
If you look into the legal records concerning prepaid legal (This does NOT include so
called online reports), there have been several lawsuits against their company. However ,
in all the cases that we could find, the suits were all concerning internal pay structures of
people who sold for pre-paid legal, and had nothing to do with the actual product that
was being offered by pre-paid legal.
Excluding the internal issues that exist with prepaid legal, we've been overall impressed
with their services. On a cost comparison & survey of various legal fees, settlements,
and general costs that one would consider over the course of a few years, we found that
prepaid legal was better than going the normal route for legal servicing.
One thing we do advise is to follow a general rule guide when considering whether
prepaid legal is right for you.
We found that the savings of having a prepaid legal plan were advantageous when we
had to perform the following.
• Creating a will (Or Trust)
• Insurance Litigation
• LLCs & Incorporation
This of course is not to say that Prepaid's services in other areas weren't useful , however
, we felt that the cost was justified if you planed on having one of these items done in the
next 5 years. Of course, no one can plan years in advance concerning a divorce or a
bankruptcy , however the savings was significant enough to justify purchase of the
Considering the cost , we do recommend prepaid legal's services , and do not feel that
the “Scam” title that is thrown up on blogs every so often is deserving any way. One of
the more interesting aspects about these things is the possibility of false claims being
If you'd like to get the lowest cost prepaid legal service policy , check out our order form
by clicking here