Credit Card Lawsuit News
June 21, 2014
$20 credit card bill leads woman to sue Kohl's for harassment
Enough with the calls.
That's what one consumer is telling Kohl's in a federal lawsuit that claims the department store is stalking her and harassing her by phone over an overdue credit card bill, calling her at all hours of the night over what she calls a measly $20.more...
June 15, 2014
Credit alert! Unpaid medical bills unfairly hurt scores
Medical bills are different—they can cause serious and long-term financial problems.
If you make a credit card purchase, you know how much you've spent and what the interest rate will be if you don't pay the balance in full.more...
June 13, 2014
Southern California debt collection operation to refund $4 million
A Southern California debt collection operation agreed to refund more than $4 million to consumers to settle allegations that its employees posed as process servers and used other deceptive tactics, the Federal Trade Commission said Wednesday.more...
June 8, 2014
ACA Submits Amicus Brief in Debt Collector’s Statute of Limitations Case
ACA opposes CFPB and FTC stance on FDCPA violations and supports member’s defense against consumer appeal in out-of-statute debt collection case.
IAFIn July 2013, the ACA International Board of Directors approved initiatives to protect the long term viability of the credit and collection industry.more...
June 7, 2014
Chase Debt Collector Garnishes $10,000 of Woman’s Wages for Debt that Wasn’t Hers
Disturbing Trend in Collections for Credit Card Debt
All too often, these lawsuits arise from debt-buying firms that pay credit card companies for information on debts they have written off. According to the Center for Responsible Lending, income from lawsuits by debt-buying companies has almost doubled since 2009.more...
May 31, 2014
Dealing With Debt Collectors
If you’ve ever been dunned by a debt collector, you’re not alone: Roughly one in seven American adults is being pursued by a collector, for amounts averaging about $1,500.
That’s according to a report from the Center for Responsible Lending, a nonprofit research group.more...
May 28, 2014
Turning to debt collectors for unpaid taxes a bad idea
WASHINGTON — The federal government needs money. I get it.
The Internal Revenue Service has a significant number of overdue tax debts it needs to collect. More than 5 million taxpayers were delinquent near the end of April, according to the agency.more...
May 26, 2014
Debt Collectors to Pay More than $4 million in FTC Settlement
A Southern California debt collection operation and its managers will surrender more than $4 million for consumer redress to settle Federal Trade Commission charges that it extorted payments from consumers using false threats. The settlement also carries a lifetime collection ban.more...
May 24, 2014
Supreme Court Ruling Not Enough To Prevent Debtors Prisons
Debtors prisons were outlawed in the United States nearly 200 years ago. And more than 30 years ago, the U.S. Supreme Court made it clear: Judges cannot send people to jail just because they are too poor to pay their court fines.more...
May 20, 2014
Credit Card Delinquencies and Debt Decline From 2013
Research shows consumers’ holiday bill payments, in part from recent tax refunds, contribute to lower credit card balances in the first quarter of 2014.more...
May 19, 2014
Taking on the country’s biggest debt buyer, Midland Funding
Leoncio Paz took on one of the country’s biggest debt collectors — and won.
The case was pretty cut and dry: Midland Funding sued Paz for $5,216 on an old credit card debt. Paz, 48, said the amount was more than he owed. But rather than accept the charges, as so many others do, the maintenance man from Alexandria, Va., contacted a legal aid attorney.more...
May 18, 2014
Credit Card Delinquencies and Debt Decline From 2013
Research shows consumers’ holiday bill payments, in part from recent tax refunds, contribute to lower credit card balances in the first quarter of 2014.
Credit card balances and delinquency rates have declined in the last year, according to new research from TransUnion.more...
May 16, 2014
New York Fines Two Firms Over Debt Collections
Portfolio Recovery Associates and Sherman Financial Agree to Halt Suits Against Borrowers
Two large consumer debt-buying firms have agreed to halt lawsuits against borrowers and to pay fines under separate settlements with New York Attorney General Eric Schneiderman.more...
May 10, 2014
NY's top judge proposes tougher burden of proof for debt collectors
New York's chief judge is joining the fight against a growing trend of false credit card debt lawsuits through a new rule that will increase the burden of proof on plaintiffs.
Chief Judge Jonathan Lippman, announced the new rules last Wednesday in the New York State Court of Appeals. The rules would require plaintiffs in credit card debt cases to provide testimony from the original creditor, a copy of the credit agreement, each prior owner of the debt and prior value of the debt with the current amount owed, including interest and other charges.more...
May 9, 2014
Poll Results Show Possible Impact on Debt Collection
Consumers are more likely to pay their balances each month and overall credit card debt among Gallup’s poll participants has declined since 2008.
Credit card holders in the United States are more fiscally responsible about paying their balance each month than they were in the last decade, according to results from a poll by Gallup.more...
April 30, 2014
Rutgers Study Finds that Debt for the Middle-Aged and Seniors to be Associated with Increased Depression
Money worries result in an a lower sense of well-being, in addition to a financial squeeze
In addition to making you poor, debt might also be increasing your risk for depression. Many middle-aged and older Americans are finding that the debt they carry, from maxed out credit cards to crippling medical bills, may lead to depression and a lower sense of well-being, in addition to a financial squeeze.more...
April 29, 2014
Poll Results Show Possible Impact on Debt Collection
Consumers are more likely to pay their balances each month and overall credit card debt among Gallup’s poll participants has declined since 2008.
Credit card holders in the United States are more fiscally responsible about paying their balance each month than they were in the last decade, according to results from a poll by Gallup.more...
April 25, 2014
Man sued over alleged non-payment of loan
A local man is being sued by two companies for his alleged failure to repay a loan.
Gulfco of Louisiana LLC and Tower Loan of LaPlace filed suit against Stephen M. Rosiere in the 24th Judicial District Court on March 31.more...
April 21, 2014
Payday lenders, prepaid cards and debt collectors up next for CFPB, Cordray says
The Consumer Financial Protection Bureau aims to level the playing field between consumers and providers of everything from mortgages to credit cards and student loans. Next on the docket: Tweaking payday lending - the short-term, high-cost borrowing deemed by critics as predatory.more...
April 20, 2014
North Texas Businessman Feels “Violated” By Debt Collector
The Debt Collector’s Response: “I’m Sorry”
A local contractor says he thought it was a godsend when a company offered to help him recoup money he was owed.more...
April 19, 2014
Bank wrongly foreclosed on house, suit claims
KINGWOOD — A Newburg residence was destroyed in a home fire and then wrongfully foreclosed.
ChaseBankDaniel D. Danks and April D. Danks filed a lawsuit March 21 in Preston Circuit Court against JP Morgan Chase Bank NA, citing slander of title, negligence and violation of the West Virginia Consumer Credit Protection Act.more...
April 13, 2014
TCPA debt collection calls can only be placed to cell phone subscribers
On March 28, 2014, the United States Court of Appeals for the Eleventh Circuit ruled that debt collection calls can only be placed to the subscriber of the cellular telephone being called under the Telephone Consumer Protection Act (“TCPA”). Specifically, section 227(b)(1)(A)(iii) of the TCPA states, in part, that it shall be unlawful to make any call using an automated dialing system or artificial or prerecorded voice to any telephone number “for which the called party is charged for the call.”more...
April 12, 2014
“Zombie” debt, unlike its namesake, is truly scary
Do you owe some institution money from a long time ago? “Zombie” debt is debt that has come back from the dead to haunt you. Collection groups find and buy old debt in bulk from credit card companies, gyms, public utilities, cellphone providers and other creditors, and the business is growing steadily. Those collection grounds can be very aggressive.more...
April 9, 2014
Man sues claiming credit debt collector sent lawsuit notices to wrong addresses
A man is suing a debt collector claiming it did not fulfill a legal duty to inform him of a lawsuit on an open account before securing default judgment.more...
April 6, 2014
Texas City man sued over car payments
A Texas City man is being sued over claims he failed to make payments on the purchase of a vehicle.
Independent Bank filed a lawsuit March 21 in the Galveston County District Court against Andre Davis, citing breach of contract.Loan-Agreement-1633743more...
March 31, 2014
American Express files claim against credit card holder for unpaid balance
American Express Bank has filed suit against a card holder, claiming he has not paid loans as promised.
American Express Centurion Bank filed a lawsuit March 17 in the Jefferson County District Court against Brandon J. Turner, also known as Olton Turner, citing breach of contract.AmExcreditcardmore...
March 28, 2013
Time for the Feds to Step In: Illegal and Abusive Debt Collection Threatens to Exacerbate Racial Inequality
In 2012, a pregnant woman in Colorado was arrested and jailed after being pulled over for a traffic violation. The reason? A debt collector went to court for a warrant for her arrest—not because she committed any crime, but because she apparently had not answered written questions in a proceeding to collect unpaid credit card debt. Her bond was set at $5,806—an exorbitant sum that just so happened to be the full amount of the debt she owed plus interest. Unable to pay, the woman spent a night in jail in yet another modern twist on the banned practice of debtors' prisons.more...
March 27, 2014
Is a widow responsible for husband's credit card debt?
Q: After my father passed away my mother’s income dropped drastically. For several months she used her savings to pay all of her bills. Financially she is having a very hard time. Is she responsible for all of the credit card debt that is owed?more...
March 25, 2014
Chicago Lender Faces Lawsuit for Violating Predatory Lending Laws
Attorney General Lisa Madigan filed suit today against a Chicago area short-term lender for designing and selling a new emerging short-term loan intended to thwart important protections in Illinois law against predatory lending and trap borrowers in an inescapable cycle of debt.Madigan filed the lawsuit late yesterday in Cook County Circuit Court against CMK Investments Inc., which operates as All Credit Lenders, selling small consumer loans and lines of credit. All Credit Lenders is based in Elgin but operates storefronts across Illinois, Wisconsin and South Carolina.more...
March 24, 2014
Credit Card Provider Sued for ‘Deceptive’ Tactics
Heartland Payment Systems, one of the largest credit card providers in the U.S., stated in a press release that it has filed a federal lawsuit against Mercury Payment Systems, also a provider in the U.S.more...
March 21, 2014
Miami Class Action Accuses JPMorgan Chase Of Robosigning
A team of lawyers from around the country have filed a class action lawsuit against JPMorgan Chase & Co. and its affiliates, alleging it used robo-signed affidavits to illegally obtain default judgments against credit cardholders.more...
March 20, 2014
Discover Bank sues Vidor man for delinquent account
Discover Bank has filed suit against Vidor resident Paul Sergeant, seeking to collect on a past due account.
The suit was filed Feb. 12 in Orange County District Court.more...
March 9, 2014
Chase Debt Collections Continue to Fall
JP Morgan Chase’s annual 10-K report to the SEC reveals some critical details about the mega-bank’s debt collection practices. In 2013, JP Morgan Chase recovered $593 million of charged-off credit card debts, continuing a three-year trend of anemic debt recovery. In 2010, the country’s biggest bank recovered $1.37 billion from unpaid credit card bills it had previously written off.more...
March 8, 2014
Debt Collector Harassment Can Take on Many Forms
Scranton, PA: A New York man who claims to have been harassed and later sued over a debt to a credit card agency that had long been settled filed a debt collector lawsuit of his own, alleging that co-defendant NCO Group Inc. (NCO) and various legal firms in its employ had no right to harass him for a debt he no longer owed.more...
March 7, 2014
Advice for a Business Haunted by Decade-Old Credit Card Debt
My business is 11 years old and growing each year, but we still have a huge debt hanging over our heads due to bad purchasing early on, which I financed on credit cards. I need working capital to pay off my bad debt and have money to market myself better now. What can I do?more...
February 27, 2014
Mistaken identity leads to collection woes for Knox County couple
KNOXVILLE (WATE) - Cases of mistaken identity can lead to all sorts of legal and financial problems, and those mistakes have even been known to ruin people's credit.
We've told you about fake debt collectors, and how they may call or send a notice trying to pressure you into paying a bill you don't owe.more...
February 25, 2014
Courthouse 'Rocket Dockets' Give Debt Collectors Edge Over Debtors
Early on a chilly Friday in January, Franklyn Williamson walked into courtroom 264B of the Prince George's County, Md., district courthouse. An athletic 55-year-old realtor in Silver Spring, Williamson had canceled a Florida trip to appear in court that day. He wasn't there for a trial or an official hearing, however. Like the 169 other people on the docket that morning, Williamson had received an official court summons for a one-on-one meeting with a debt collector.more...
February 24, 2014
Capital One Stumbles Over Rules With 'Creepy' Debt Collector Policy
Credit card provider Capital One is caught in a vortex of its own this week a storm centered around language in its credit card contracts that implies it has the right to visit a customer's home to collect a debt.more...
February 21, 2014
Illinois Appellate Court holds that attorney who filed lawsuit on behalf of unlicensed debt buyer did not violate FDCPA
Gibbs v. Blitt and Gaines, P.C., --- N.E.3d ----, 2014 IL App (1st) 123681, 2014 WL 554550
In Gibbs, the Illinois Court of Appeals upheld dismissal of a complaint against a law firm for an alleged violation of the FDCPA, finding that the suit filed by the law firm on behalf of its unlicensed debt collector client did not violate the Illinois Collection Agency Acmore...
February 20, 2014
Credit Card Provider Sued for ‘Deceptive’ Tactics
Heartland Payment Systems, one of the largest credit card providers in the U.S., stated in a press release that it has filed a federal lawsuit against Mercury Payment Systems, also a provider in the U.S.more...
February 19, 2014
United States: Third Circuit Holds That Debt Collectors Must Generally Comply With The Bankruptcy Code And The Fair Debt Collection Practices Act
In Simon v. FIA Card Services, N.A.,1 the U.S. Court of Appeals for the Third Circuit recently ruled that a debtor in a bankruptcy proceeding is not unconditionally precluded from bringing claims under the Fair Debt Collection Practices Act (the "FDCPA").
February 18, 2014
Brock Services sues for repayment after settlement
A company is asking the court to find that another company charged unreasonable and excessive rates in defense of a negligence claim.
Brock Services LLC filed a lawsuit on Feb. 7 in the Jefferson County District Court against Brand Services Inc. and XYZ Insurance Co., seeking a declaratory judgment.more...
February 17, 2014
Woman Listed as Deceased Files Lawsuit Claiming She’s Alive
Kimberly Haman wants people to know that reports of her death are greatly exaggerated.
In this instance, it’s not a newspaper or TwitterTWTR +1.72% account that has apparently jumped the gun with a premature death report. Ms. Haman, a 46-year-old St. Louis homeowner, claims she spent months trying and failing to convince her local bank and a major credit reporting company that she’s alive.more...
February 6, 2014
Too Old to Manage Debt and Good Credit?
am 76 years old and retired. Currently, I live on a pension and Social Security, about $3,400 per month. I owe $5,000 for a personal loan and $15,000 in credit card debt. In view of my age and the weight of the debt, what are my best options?more...
February 1, 2014
Asset Recovery Associates sued for alleged Fair Debt Collection Practices Act violations
A Beaumont resident is suing for alleged violations of the Fair Debt Collection Practices Act.
Eloise Gums filed a lawsuit Jan. 13 in the U.S. District Court for the Eastern District of Texas, Beaumont Division, against Asset Recovery Associates, citing violations of the Fair Debt Collection Practices Act. past due final notice debtmore...
January 28, 2014
Better Business Bureau warns of a new scam
AMARILLO, TEXAS -- A warning from the Better Business Bureau in the Texas Panhandle about certain scams you need to be aware of.
Fake collection calls are one of the most enduring, and intimidating scams they said they see. Now, thanks to caller ID spoofing technology, scammers are posing as FBI agents in an attempt to scare consumers into paying debts they do not owe.more...
January 27, 2014
American Express sues credit card holder over unpaid balance
American Express Centurion Bank filed suit in the Galveston County District Court on Jan. 15, naming Ronald Hamann as the sole defendant.
AMEX is suing Hamann for allegedly failing to pay off a credit card they issued. more...
January 26, 2014
Cybercrooks Score: Half of All South Koreans’ Credit Card Data
If you didn’t know, now you know: there probably shouldn’t be any expectation that credit card information—or any personal details stored in digital form—is completely safe from hackers. Just as shoppers in the United States were grappling with the theft of 70 million credit card accounts from Target, comes word that credit card data for nearly half of all South Koreans has been purloined. More than 20 million South Korean credit card accounts, including those belonging to President Park Geun-hye and United Nations Secretary-General Ban Ki-moon, were part of the trove plundered in the cyberheist.more...
January 24, 2014
Fight back against nasty debt collectors
Now that the holiday spending is over, the bills are coming in.
And that might eventually mean calls from debt collectors.
Some of those calls can be nasty, including threats to your family and your dog.more...
January 19, 2014
Disputing Credit Card Charges
How to File a Complaint
Have you ever been billed for merchandise you either returned or never received? Has your credit card company ever charged you twice for the same item or failed to credit a payment to your account? While frustrating, these errors can be corrected. It takes a little patience and knowledge of the dispute settlement procedures provided by the Fair Credit Billing Act (FCBA).more...
January 17, 2014
You Can Beat Credit Card Debt Collectors
You just received a certified letter in the mail from a law firm, you have a sinking feeling as you sign for this unwanted piece of mail, and when you open the envelope, your fears are confirmed. You are being sued by a credit card company that has come to collect what you left off owing them. All is lost, your world goes into a tailspin, and images of lost wages, raids on your little bank account, and possibly losing everything flash through your mind. Hopeless! You just want to find a hole and drop in it. But, guess what, you are very wrong. You don’t have to lose a thing, and my article will explain why.more...
January 16, 2014
Debt Collectors Hound Black Borrowers More Frequently Than White Ones
Despite being no more likely to fall behind on their credit card bills, African Americans are far more likely than white borrowers to be targeted by debt collectors.
Seven in 10 African Americans surveyed by the think tank Demos report getting calls from bill collectors, compared to just 50 percent of whites. more...
January 15, 2014
California Lawsuit over Chase’s Debt Collection Practices is Still On
Stephanie Levy January 8, 2014 (Be the first to respond)
The California Superior Court of Los Angeles rejected a bid Tuesday by mega-bank JP Morgan Chase to dismiss a lawsuit brought in May 2013 by California Attorney General Kamala Harris alleging widespread debt collection abuses in the bank’s credit card unit.more...
January 11, 2014
J.P. Morgan Is Sued for Alleged Misconduct in Credit-Card Collections
Mississippi Suit Claims J.P. Morgan Made Misleading Statements to Borrowers
J.P. Morgan Chase JPM -0.46% & Co.'s legal problems worsened Tuesday when the State of Mississippi alleged it committed misconduct while suing credit-card users for delinquent payments.more...
January 4, 2014
Ways to keep your credit card and debit card information safe from hackers: CardHub.com
The impact of a massive security breach at Target could reverberate at the retailer for some time to come. Though credit card users typically aren't held liable for any unauthorized charges, here are tips on using your cards safely.more...
December 29, 2013
An Easing of Rules on Charges by Amex
After a decade of legal battles, the three major credit card companies are backing away from longstanding policies that prevented merchants from charging customers extra for paying with plastic.
Agreements with the three major card companies clear the way for vendors to institute what is essentially two-tier pricing.more...
December 26, 2013
Judge to weigh Hood’s credit card issuer lawsuit
JACKSON — A federal judge in Mississippi has been ordered to decide if Attorney General Jim Hood’s lawsuit against six credit card issuers should remain in U.S. District Court in Jackson.more...
December 23, 2013
Local woman files $5 million suit against Target
PORTLAND, Ore. – Lots of people had their financial information breached at Target stores recently, but a few are actually doing something about it.
A Milwaukie woman filed a lawsuit in federal court in Portland on Friday, contending Target didn’t do enough to protect its customers’ information.more...
December 22, 2013
Montgomery-based law firm files class action lawsuit against Target following security breach
The Montgomery-based Beasley Allen law firm has filed a class action lawsuit on behalf of 40 million Target customers whose credit and debit card information was compromised in a security breach that started the day before Black Friday.more...
December 21. 2013
Target could face class action lawsuit, other litigation over data breach
Target Corp. could face costly class action lawsuits from consumers as well as litigation from banks and state attorneys general after its massive data breach in which hackers gained access to credit and debit card data for as many as 40 million customers.more...
December 15, 2013
How your driving can affect your credit
When you get behind the wheel, your habits and choices could put your credit at risk. Here's how to avoid getting your credit dinged.
My daughter recently turned 15, and one of the first things she did on her birthday was to take an online test required to get her learner’s permit. more...
December 14, 2013
Attorney Joe Amendola sued by credit card issuer over balance due
A credit card company is claiming that local attorney Joe Amendola racked up more than $25,000 in debt and hasn’t paid a dime since the account went delinquent.more...
December 10, 2013
Port Arthur woman sues New York collection agency for accusing her of credit card fraud
A Port Arthur woman has filed a lawsuit against a debt collection agency that accused her of participating in credit card fraud. credit cards stackmore...
December 8, 2013
FIA Card Services sues over unpaid credit card balance
FIA Card Services has filed a lawsuit against Beaumont resident Thomas Pyle, alleging he refuses to pay a credit card balance.more...
December 5, 2013
Credit Card Lawsuit in Jurisdiction Dispute
A federal judge in Mississippi has been ordered to decide if Attorney General Jim Hood's lawsuit against six credit card issuers should remain in U.S. District Court in Jackson.
If the judge rules there is no federal issue to resolve, a three-judge panel of the 5th U.S. Circuit Court of Appeals says the lawsuit should return to state chancery court where Hood originally filed it in June of 2012.more...
November 30, 2013
Cash-now promise of lawsuit loans under fire
10 states consider laws to hem in new high-fee loan industry
"Get Cash in 24 hours!" "Need cash now? Get a cash advance for your pending lawsuit." "Lawsuit Loans for Lawsuit Cases."more...
November 28, 2013
Martinsburg man sues TRS Recovery over debt collection
MARTINSBURG – A Martinsburg man claims he was subjected to illegal debt collection practices.
Frank Ramsey filed a lawsuit Sept. 24 in United States District Court for the Northern District of West Virginia Martinsburg Division against TRS Recovery Services Inc., citing violation of the Fair Debt Collection Practices Act and violation of the West Virginia Consumer Credit and Protection Act.more...
November 27, 2013
A phone call from a credit card company may entitle you to money
SIOUX CITY, Iowa (KTIV) - If you received a call from a credit card company in the last few years, you could be entitled to some money.
There is a class action lawsuit for those who received an automated or a pre-recorded phone call from Discover Financial Services.more...
November 26, 2013
S and S Sprinkler sues Capital Crew for unpaid bill
S and S Sprinkler Co. LLC filed suit in the District Court of Jefferson County on Nov. 12, naming Capitol Crew LLC as the sole defendant.
This lawsuit stems from an alleged unpaid debt owed to S and S Sprinkler Co.
Partainmore...
November 21, 2013
AARP Looks to Clean Up Debt Collectors' Dirty Practices in New York
When Old Debts Haunt Consumers, Deceit, Abuse & Cut Corners by Collectors Can Prevail – NY Court Case at Center of Putting a Stop to Itmore...
November 17, 2013
City contractor will collect delinquent court debts
The Kilgore City Council voted to enter into an agreement with Linebarger, Goggan, Blair & Sampson, LLP (LGBS) for the firm to provide collection services for the city’s municipal court.
The firm has worked with the city to collect delinquent property taxes, and LGBS tax attorney John Bolster said the firm is the largest collection firm in the country specializing in collecting governmental debt.more...
November 16, 2013
Payday Lenders Are Using Texas Prosecutors to Collect Their Bad Debts
The payday lending industry in Texas has managed to wrap its tentacles around just about every level of government there is, repeatedly killing any move toward meaningful regulation on the part of the state Legislature, skirting rules set up by municipalities, Dallas included, aimed at curbing its worst abuses, and, now, getting county prosecutors -- the people Texans elect to lock up thieves and murderers and rapists and such -- to carry water debt-collection notices for it.more...
November 13, 2013
Martinsburg man sues TRS Recovery over debt collection
MARTINSBURG – A Martinsburg man claims he was subjected to illegal debt collection practices.
Frank Ramsey filed a lawsuit Sept. 24 in United States District Court for the Northern District of West Virginia Martinsburg Division against TRS Recovery Services Inc., citing violation of the Fair Debt Collection Practices Act and violation of the West Virginia Consumer Credit and Protection Act.more...
November 9, 2013
Final judgment entered in suit over attorney’s fees
An agreed final judgment has been entered in a suit between attorneys over attorney’s fees. Gavel-judge
As previously reported, Beaumont attorney Daniel Clayton, alleging he was not paid for preparing an appeal, filed suit against Eddie Schroeder, also a Beaumont attorney, along with Khai Tran and Hai Hoang on Dec. 31 in Jefferson County District Court.more...
November 7, 2013
Nebraska Collectors Association denounces illegal practices
The Nebraska Collectors Association said Monday that unscrupulous parties using the guise of debt collection to scam the unsuspecting by phone should face the full sanction of the law.
“Unscrupulous scams hurt Nebraska consumers and unnecessarily impede legitimate debt collection efforts,” said Nebraska Collectors Association spokesman Mark Schiffman. “The recovery of consumer debt is vitally important to our local, state and national economies. Those who purposely violate the law to exploit Nebraska consumers should be held fully accountable for their actions.”more...
October 31, 2013
Lawsuit Says Capital One Practices Illegal Debt Collection
According to a federal class action lawsuit filed in White Plains, N.Y., Capital One Bank and Cohen and Slamowitz, a law firm that represents it, “practice illegal credit and collection practices.”
The charge is made by attorney Shimshon Wexler, who filed suit against Capital One and Cohen and Slamowitz for violating the Fair Debt Collection Practices Act. The FDCP was added in 1978 to the Consumer Credit Protection Act, which eliminates abusive debt collection practices.more...
October 31, 2013
Collin County woman sues debt collector for message implying lawsuit was filed
SHERMAN – A Collin County woman has filed a lawsuit against a debt collector for leading her to believe that it was filing a lawsuit against her for an outstanding debt.
Yuliya Sindiy filed suit against SKC Financial on Oct. 24 in the Eastern District of Texas, Sherman Division. girl-mad-phonemore...
October 30, 2013
Settlement nears in lawsuit over Schnucks credit card breach
ST. LOUIS -- The suburban the St. Louis-based grocery chain Schnucks Markets has agreed to a settlement in a class-action lawsuit stemming from a computer system breach that compromised credit and debit cards of about 2.4 million customers.more...
October 28, 2013
Payday Lender Cash America Braces for Regulatory Crackdown
Enforcement Action Would Be First by Consumer Finance Watchdog Against a Payday Lender
Cash America International Inc., CSH -3.63% one of the country's largest providers of short-term credit, is bracing for a crackdown by the Consumer Financial Protection Bureau in what would be the agency's first enforcement action against a so-called payday lender.more...
October 27, 2013
Appeals court reverses and remands debt collection suit; Dissenting justice: Court ‘spelunks in depths of legislative history’
NEW ORLEANS – The U.S. Court of Appeals for the Fifth Circuit heard a debt collection case originally heard in the Southern District of Texas and reversed and remanded the district court’s original decision.more...
October 24, 2013
Texas man sues after debt collector calls during visit to bathroom
For one Collin County man, the irritation of getting a cell phone call at an inopportune time apparently wasn't as bad as ending up missing it.
David E. Mack, who just missed two calls - one while he was in the bathroom and a second while he was on another phone getting ready for a conference callmore...
October 17, 2013
Man sued after $321,000 spend at erotic nightclub
A Houston business man is accused of bad business practices at one area company. James Jay Beckman is now being sued by a strip club after allegedly running up a more than $300,000 tab. Even worse Beckman allegedly gave his company credit card to the strip club to pay that bill. Now the gentleman's club is suing Beckman and the company he works for.more...
October 15, 2013
In some states, debt collectors can legally take your home, car and cash
Depending on where you live, debt collectors may be legally entitled to take your entire paycheck, house or car and completely clear out your bank accounts.
Families in the District of Columbia have a better chance of holding on to their vehicles than those in Maryland and Virginia. Yet Washington residents could have 25 percent of their wages transferred to a creditor.more...
October 11, 2013
Report: Debt protection varies widely by state
WASHINGTON — Depending on where you live, debt collectors may be legally entitled to take your entire paycheck, house or car and completely clear out your bank accounts.more...
October 6, 2013
Judge Rules Against New York's Ban on Credit Card Surcharges
NEW YORK -- As a federal judge sitting in Brooklyn, N.Y., decides the fate of a proposed billion-dollar settlement to a class-action lawsuit over credit card swipe fees, New York retailers won a battle over the state's ban on surcharges.
On Thursday, U.S. District Judge Jed Rakoff of the Southern District of New York ruled that a New York law prohibiting retailers from adding a surcharge to credit card purchases is unconstitutional. The surcharge is intended to make up for the credit card swipe fees.more...
September 30, 2013
Debt collection agency sued after claiming to be legal department
SHERMAN – A Collin County woman has filed a lawsuit against a debt collection agency claiming the debt collector violated federal and Texas law by identifying itself as a caller from the legal department.
Mary Lombardo filed suit against Credit Solutions Corp. on Sept. 27 in the Eastern District of Texas, Sherman Division. more...
September 28, 2013
Four state banks to pay $8 million in credit lawsuit
CHARLESTON (AP) - Four banking companies have agreed to pay the state nearly $8 million to settle a lawsuit claiming they used deceptive tactics to sell credit card protection programs to customers.
West Virginia Attorney General Patrick Morrisey announced Tuesday that Bank of America Corp., JP Morgan Chase & Co., Citibank/Citigroup Inc. and GE Money Bank agreed to pay $1.95 million each in the settlement.more...
September 26, 2013
Collin County man sues debt collector over $145 debt
SHERMAN – A Collin County man has filed a lawsuit against a debt collector for failing to validate a $145 debt from the city of Dallas.
David E. Mack filed suit against Progressive Financial Services Inc. and Christopher Hale on Sept. 18 in the Eastern District of Texas, Sherman Division. cease-and-desist1more...
September 24, 2013
Massachusetts Probes J.P. Morgan's Debt-Collection Practices
The Massachusetts Attorney General's Office is investigating J.P. Morgan Chase JPM -1.03% & Co.'s debt-collection practices, a person familiar with the matter said, one of several probes the bank faces over how it has collected payments from delinquent borrowers.
The investigation by Massachusetts Attorney General Martha Coakley is separate from another investigation being conducted by a group of 13 states, this person said. That investigation, led by Iowa Attorney General Tom Miller, is focused on the debt-collection practices of J.P. Morgan and other companies.more...
September 21, 2013
Company seeks writ to make BofA pay for court judgment over woman’s debt
A Houston company claims money it is owed by a Houston woman is being held by Bank of America.
Old West Capital Co. filed a writ of garnishment after judgment Sept. 13 in Jefferson County District Court against Bank of America Corp. and Rhonda P. Graham. Bank of America signmore...
September 15, 2013
Court finds in favor of Honesdale woman in robocall case
The Third U.S. Circuit Court of Appeals sided with a Honesdale woman's challenge to the debt collection practices of a major U.S. computer manufacturer, earning a precedent-setting decision from the appellate court involving Dell's use of "robocalls" to try to coax payments from past due accounts.more...
September 14, 2013
Do’s And Don’ts In Credit Card Settlement
credit cardIf you want to keep yourself from credit card debt or more specifically, falling further into it, you need to act immediately and find a solution. With the high fees and penalty charges that can grow your debt significantly, you have to cut off the problem to avoid wasting any more of your money.
Fortunately, credit card debt can be solved by almost any debt relief program and one of your choices is credit card settlement.more...
September 12, 2013
Payday lenders move online as regulators crack down
WASHINGTON — The banner ad atop the website features a wide-eyed baby cradled in an adult’s hands with the words, “Did that special vacation for two end up producing a third? Castle Payday has life’s unexpected expenses covered.”
On a growing number of sites like this one, short-term loans are just a click away for web-surfing borrowers, regardless of any history of bankruptcy, bounced checks or other credit problems.more...
September 10, 2013
Recent real estate foreclosures filed in Jefferson County courts
JPMorgan Chase has filed an application to foreclose on the property of Timothy Weaver, administrator of the estate of Elzina Young, located at 3155 Timberwood Lane, Beaumont, Texas 77703.
The application was filed Sept. 5 in Jefferson County District Court.foreclosuremore...
September 5, 2013
Port Arthur EDC seeks repayment of $100K from Hernandez & Solis
The city of Port Arthur has filed suit against the company that it claims failed to repay a loan and failed to fulfill the obligations of a grant.
Section 4A Economic Development Corporation of Port Arthur claims it loaned $40,000 to defendant Hernandez & Solis Inc. It also loaned Hernandez & Solis $60,000 in the form of a conditional grant, according to the suit.tortilla stackmore...
August 31, 2013
US consumer bureau files lawsuit against Nevada debt-relief firm
The U.S. consumer watchdog said it filed a lawsuit on Tuesday against a Nevada-based debt settlement company that regulators said charged improper fees and made misleading claims about its services.
The Consumer Financial Protection Bureau (CFPB) said Morgan Drexen charged upfront fees for debt-relief services, even though firms are not allowed to charge such fees until after they have helped settle or reduce borrowers' debt.more...
August 30, 2013
FIA Card Services sues over $37K delinquent credit card account
FIA Card Services has filed a lawsuit against Beaumont resident John Hagger, alleging he refuses to pay a credit card balance of more than $37,000.
The suit was filed Aug. 22 in Jefferson County District Court.more...
August 28, 2013
Denton Co. woman sues debt collector after threats to seize assets
SHERMAN – A Denton County woman has filed a lawsuit against a debt collector claiming that the company threatened to seize her assets in order to cause her mental distress.
Michelle Morrison filed suit against Performant Recovery Inc. and Does 1 through 10, inclusive on Aug. 21 in the Eastern District of Texas, Sherman Division. girl-mad-phonemore...
August 23, 2013
Collin Co. man sues debt collector for threatening to file lawsuit
SHERMAN – A Collin County man has filed a lawsuit against a debt collector for violating federal law by threatening to file a lawsuit in order to collect a debt.
Brandon Lottie filed suit against Audubon Financial Bureau and Travelers Casualty and Surety Co. of America on Aug. 12 in the Eastern District of Texas, Sherman Division. past duemore...
August 20, 2013
CACH sues Beaumont man to recover $10K credit card debt
CACH LLC has filed suit against Beaumont resident Slade Smith, claiming the defendant has defaulted on a credit account and now owes more than $10,000. credit-cards
The suit was filed Aug. 8 in Jefferson County District Court.
According to the suit, the defendant was advanced dollars on a credit card account.more...
August 16, 2013
Dallas-area businesses sue Visa and MasterCard, alleging antitrust violations
More than 100 large merchants, including more than three dozen prominent North Texas-based businesses, have sued Visa and MasterCard, alleging the credit card companies forced them to pay excessive fees amounting to hundreds of millions of dollars.
The suit claims that Visa and MasterCard membership rules prevent banks that issue credit and debit cards from competing for merchant acceptance of those cards.more...
August 14, 2013
Montana woman sues East Texas debt collection agency for refusing to stop debt collection calls
SHERMAN – A Montana resident has filed a lawsuit claiming an East Texas debt collection agency violated federal law by refusing to stop its collection calls.
Tamara Jordon filed suit against Southwest Credit Systems L.P. on Aug. 2 in the Eastern District of Texas, Sherman Division.more...
August 13, 2013
Don't Ignore Debt Collectors -- But Don't Pay Them, Either (If You Don't Owe)
ast week, ABC's "The Lookout" aired my follow-up report about Diana Mey, the woman we first profiled in 2012 who won a $10 million judgment against a debt collection company. Like the original story, it garnered thousands of page views, zooming to the top of ABC's most viewed list.more...
August 8, 2013
What to Do If You're Sued By Your Credit Card Company
Whether the notice comes in the mail, or is delivered to your doorstep, being told that you are being sued for a credit card debt can be terrifying. For many people, the first reaction is to shut down and ignore the situation. "The tragedy…is not that the consumer was sued but that most never respond," says Steve Rhode, founder of GetOutofDebt.org who is also working on a research project about lawsuits filed over consumer debts.more...
August 7, 2013
Wash. AG files suit against Spokane credit card processors
SPOKANE, Wash. (Legal Newsline) – Washington Attorney General Bob Ferguson filed a lawsuit Tuesday against two credit card processing companies and their owners for allegedly scamming small business owners.
Merchant Services Direct LLC, doing business as Syphra Inc., Generation Y Investments LLC, Boost Commerce Inc., and their owners, Kyle Dove and Shane Hurley, allegedly trained sales representatives to deceive thousands of small business owners.more...
July 31, 2013
Woman Wins $18.6 Lawsuit Against Credit Bureau
Julie miller won big in court. 18.6 million. Rebecca jarvis here with that. Persistence really paid off here.
Reporter: It did pay off here. A lot of people know this frustration. They're a key to getting a loan, a credit card, a home, a job.more...
July 29, 2013
Chase Made Errors in Nine Percent of Credit-Card Collection Lawsuits, Internal Survey Finds
The bank studied roughly 1,000 lawsuits and found mistakes in 9% of the cases, said people familiar with the review.
"Any rate above zero is high," said one person familiar with the bank's conversations with regulators.more...
July 26, 2013
Nederland Glass declares bankruptcy in personal injury
Nederland Glass, who was sued by Kevin Armstrong after he tripped over some wood while installing a window, has filed a notice of bankruptcy.
As previously reported, the suit was filed Feb. 22, 2012, in Jefferson County District Court.
Oxfordmore...
July 23, 2013
AmEx seeks $5K from Adams
Seeking to collect from a past due credit card account, American Express Centurion Bank has filed suit against Beaumont attorney Gilbert T. Adams Jr.
The suit was filed July 16 in Jefferson County District Court.
According to the lawsuit, the parties entered into a card member agreement, wherin American Express agreed to make case advances to Adamsmore...
July 18, 2013
Following adverse ruling, credit card company settles with AG’s office
POINT PLEASANT – One of the eight credit card companies sued by former state Attorney General Darrell McGraw has reached a settlement with his successor.
On June 18, Mason County Circuit Court Judge David W. Nibert approved a settlement between First Premier Bank and Attorney General Patrick Morrisey. McGraw filed the lawsuit in 2011 against a group of credit card issuers over their payment protection plans.more...
July 15, 2013
Chase Made Errors in Nine Percent of Credit-Card Collection Lawsuits, Internal Survey Finds
A piece in the Wall Street Journal dug up yet another damning fact about Jamie Dimon's J.P. Morgan Chase. This time, reporters got hold of an internal bank survey of its credit-card collections suits. It turns out that Chase's own survey found that huge numbers of lawsuits filed by the bank contained errors.more...
July 12, 2013
A warning to debt collectors: Back off
The Consumer Financial Protection Bureau is going after banks and other lenders that lie to consumers when trying to collect on loans. Yesterday it published new guidelines for financial institutions as well as letters consumers can send to banks they feel are being abusive.more...
July 10, 2013
Bank of America Faces Debt Collection Harassment Class Action Lawsuit
New York, NY: A class action lawsuit has been filed against Bank of America (BoFA) by a Florida resident, over allegations America’s biggest bank is in violation of the federal Telephone Consumer Protection Act (TCPA) and the Florida Consumer Collection Practices Act. more...
July 5, 2013
Should You Cash Litigation Settlement Checks?
If you received a check in the mail that says it’s from a litigation settlement, you might naturally be a little suspicious. After all, many unexpected windfalls are thinly disguised scams. But if your check comes from the American Express FX Fee Litigation Settlement Fund, then it's probably legitimate, and you can cash it without worrying.
July 4, 2012
Chase Halts Card Debt Sales Ahead of Crackdown
JPMorgan Chase (JPM), which is bracing for a crackdown over its credit card debt collections practices, is trying to give regulators less ammunition.
The nation's largest bank has halted most sales to third-party collectors of debts it has already charged off its own books.more...
June 29, 2013
Mortgage company seeks money from borrower
A mortgage company is asking the court for the ability to retain possession of a manufactured home after the home’s occupant defaulted on his payments.
21st Mortgage Corp. filed a lawsuit June 19 in Jefferson County District Court against Jason Wellons. more...
June 28, 2013
U.S. Supreme Court ruling in American Express case upholds class action arbitration waivers
On June 20, 2013, the U.S. Supreme Court ruled, by a 5-to-3 margin, that a group of merchants was bound by an arbitration agreement that prohibits them from bringing class action claims against American Express, even if the cost of arbitrating antitrust claims on an individual basis is prohibitive. American Express Co. v. Italian Colors Restaurant, No. 12–133 (June 20, 2013) ("American Express"). The Court, in an opinion penned by Justice Scalia, concluded that nothing in the Federal Arbitration Act (FAA) allows courts to invalidate a contractual waiver of class arbitration on the ground that the plaintiff's cost of individually arbitrating a federal statutory claim exceeds the potential recovery.more...
June 26, 2013
Too old for lawsuit?
Q: My father had some credit cards. He got to where he wasn’t able to pay on them and so he quit paying altogether. It has been about 4 or 5 years since he has made a payment. Now, he is 78 years old and not working and a couple of the companies have said they are going to file a lawsuit and make him pay for the credit cards. Can they do that at his age?
- Ann, Florence, ALmore...
June 21, 2013
Illinois Appellate Decision Seen as Major Victory for Debt Buyers and Collectors
The Illinois Appellate Court for the First District Tuesday issued an opinion in a case that challenges state law requirements for bringing debt collection law suits against consumers. The opinion, while technically a loss for the debt buyer plaintiff, is seen as “a clear victory for collection agencies and debt buyers operating in Illinois.”more...
June 19, 2013
Bank says woman’s charges on ex-boyfriend’s account were proper
A bank named in a Troy man’s lawsuit against his ex-girlfriend says the woman’s name was added to his account with his knowledge and any charges on the account were properly charged.
Andrew Harold Schmitt is suing a former girlfriend for allegedly using his identity to empty his bank account and buy a car without his consent.more...
June 15, 2013
Banks Slow to Clean Up the Mortgage Mess
After multiple enforcement actions, lawsuits and multibillion-dollar settlements, state and federal regulators are making sluggish progress in their efforts to prod banks to help mortgage borrowers.more...
June 14, 2013
Debt buyers suing over old debts
BUFFALO, N.Y. (WIVB) - A Call 4 Action investigation has turned up another scam that can target anyone with credit card debt.
Banks have used debt-buying as an investment for years. But in the last decade, entrepreneurs have found a gold mine in buying old debts or accounts that are deemed uncollectible. For consumers, it's not a level playing field.
May 11, 2013
Express Consent under the TCPA… Is it Safe?
In the 1976 movie The Marathon Man, Sir Laurence Olivier is torturing Dustin Hoffman in the attempt to discover if it is safe for Olivier to retrieve his cache of ill-gotten diamonds. Olivier believes Hoffman knows the location of the diamonds and whether the site is being watched. So as he drills into his teeth, Olivier continually asks Hoffman, “Is it safe?” At the time, Hoffman does not know.more...
June 6, 2013
Texas Girl Scout leader resigns after sticking troop with $22,000 debt
A Texas Girl Scout troop has been trying frantically to sell 6,000 boxes of cookies after their troop leader made an ordering error.
Troop 1497 of San Antonio, which consists of only five girls, has to pay up by Monday, or the debt will be handed over to a collection agency, KENS 5 reports.more...
June 4, 2013
Feds probe banks for credit card practices
WASHINGTON – Federal regulators are widening a probe into whether the nation’s biggest banks used flawed documents and incomplete records to collect on delinquent credit card debts, according to four people familiar with the investigation.
The scope of the inquiry is unclear, but those familiar with it report that the Office of the Comptroller of the Currency is expanding an ongoing investigation that began in 2011 with allegations that JPMorgan Chase was using error-filled documents in lawsuits against debtors.more...
May 31, 2013
Collection agency seeks nearly $60K in credit card debt
A Michigan collection agency wants to collect nearly $60,000 in credit card debt owed by a Madison County man.
Asset Acceptance LLC filed a lawsuit on May 13 in Madison County Circuit Court against Daniel Cook.more...
May 28, 2013
Visa, MasterCard ask U.S. court to declare card fees are lawful
NEW YORK (Reuters) - Visa Inc and MasterCard Inc , opening another front in an eight-year battle over credit card fees paid by retailers, on Friday asked a federal judge to declare that the fees do not violate antitrust law.
The lawsuit seeks to give the card companies legal ammunition against some retailers who are trying to opt out a proposed settlement under which they would receive a share of $7.2 billion in cash and fee discounts from the card companies.more...
May 24, 2013
What's on a consumer credit report?
In 1949, Diner's Club launched the first charge-card company. Today, Americans spend more using credit cards than they spend with cash. With more than $2 trillion worth of credit card transactions each year, the creditworthiness of card users is an increasingly important issue to creditors and consumers alike.more...
May 23, 2013
City may pursue claims in credit card fee-fixing case
Houston City Council on Wednesday voted to hired law firm Beck Redden to represent its interests in a pending class action lawsuit against Visa and MasterCard for allegedly conspiring to fix the fees they charge, in violation of federal antitrust laws.
Every entity that accepts the credit cards, from retailers to governments to hospitals, is impacted, City Attorney David Feldman said.more...
May 16, 2013
Wells Fargo sues Birmingham Health Care for credit card debt
BIRMINGHAM, Alabama -- Wells Fargo Bank filed suit against Birmingham Health Care today seeking $144,729 plus interest and other fees it says the organization owes on credit cards issued to the former CEO and former CFO.more...
May 14, 2013
Supreme Court to hear arguments against private lawyers representing AG’s office
CHARLESTON – Companies that have been sued by private lawyers hired by the State of West Virginia will have their chance to argue against the agreements on May 15.
That’s when the state Supreme Court is scheduled to hear appeals filed by companies that claim the West Virginia Attorney General’s Office should not be allowed to contract work out to private lawyers working on a contingency fee.more...
May 10, 2012
California Sues JPMorgan Chase Over Credit Card Cases
California’s top law enforcement official accused JPMorgan Chase on Thursday of flooding the state’s courts with questionable lawsuits to collect overdue credit card debt.
The suit, filed in California Superior Court by the state’s attorney general, Kamala D. Harris, contends that JPMorgan, the nation’s largest bank, “committed debt collection abuses against tens of thousands of California consumers.”more...
May 9, 2013
Debt Settlement Industry Targeted in New Lawsuit Seeking Millions to Compensate Customers of Meracord
The Paynter Law Firm filed a class-action lawsuit in federal court against two surety companies that have issued millions of dollars in surety bonds in favor of Meracord, LLC (formerly known as NoteWorld).
Meracord is a major player in the for-profit debt relief industry--an industry that purports to help indebted consumers "negotiate" with their creditors to lower their debts, including reducing student loan or credit card debts,more...
May 7, 2013
Beware lawsuit loan sharks
Beware: a new breed of predator is lurking in Louisiana’s legal waters preying upon unsuspecting consumers and our courts for its own financial gain.
Much like a shark drawn to a feeding frenzy by the smell of blood,more...
May 4, 2013
Judge Dismisses Lawsuit Over Upfront Card Fees
SIOUX FALLS, S.D. (AP) – A federal lawsuit that aimed to stop a watchdog agency from enforcing credit card rules limiting upfront fees has been dismissed.
U.S. District Judge Karen Schreier on Tuesday dismissed the suit by First Premier Bank and Premier Bankcard against the U.S. Consumer Financial Protection Bureau and its director, Richard Cordray.more...
April 29, 2013
Tarrant County appeals order blocking collection of court fees from indigents
FORT WORTH — — Tarrant County District Clerk Tom Wilder is appealing a visiting judge’s order that he stop collecting court filing fees from low-income litigants who were declared indigent under state law.more...
April 24, 2013
Cash-now Promise of Lawsuit Loans Under Fire
"Get Cash in 24 hours!" "Need cash now? Get a cash advance for your pending lawsuit." "Lawsuit Loans for Lawsuit Cases."
Your credit card bill already comes attached to alluringly blank "convenience checks." Your tax preparer tempts you to apply for tax refund loans. You're bombarded with television commercials for payday loans.more...
April 23, 2012
In a Twist, CFPB Rule Favors Credit Card Companies Over Consumers
How's this for irony? The Consumer Financial Protection Bureau, which has aggressively pursued questionable practices by credit card companies, has now issued rulemaking that may benefit them at the expense of customers.more...
April 20, 2013
District Attorneys Back Off Private Check Collection Contracts
After reporting from several newspapers last year, district attorneys in at least one state are cancelling contracts with private debt collection agencies to pursue bad checks. The moves come as questions are raised about the practices the companies use to recover bad check fees and the right those companies have to operate in the states.more...
April 17, 2012
A Reminder For Texas Consumers - April Is National Financial Literacy Month
April is National Financial Literacy month and a great time to remind consumers of the importance of taking charge of their personal financial well-being. Among the important aspects Texas consumers should know is what to do if contacted by a debt collector about a delinquent or defaulted account. more...
April 14, 2012
Read the fine print; Florida high court rules consumers disputing contracts can’t join class-action lawsuits
The Florida Supreme Court on Thursday delivered a blow to consumers who want to fight companies that charge usury, unjustified or illegal fees, advocates said.
Saying the U.S. Supreme Court gave it no choice, the state’s high court ruled that a Fort Pierce single mother had signed away her ability to join a lawsuit to challenge hefty fees she paid to McKenzie Check Advance of Florida.more...
April 10, 2012
District Court affirms Bankruptcy Court determination that option holder had standing under Texas Deceptive Trade Practices Act
In Carroll v. Farooqi, 2013 U.S. Dist. LEXIS 22329 (N.D. Tex. Feb. 19, 2013), the United States District Court for the Northern District of Texas affirmed a U.S. Bankruptcy Court’s holding that an individual had standing to pursue an action against a franchisor under the Texas Deceptive Trade Practices Act (DTPA). The case involved an unsuccessful sale of a Salad Bowl franchise. The CEO of the fast causal franchise company (who was also its president, chairman, and CFO) contacted a potential buyer of a franchise. The buyer signed a thirty-day option contract and paid $25,000 to the CEO for the franchise fee. Unfortunately,more...
April 8, 2012
Galveston attorney sues client to recover $7K debt
GALVESTON – A local attorney claims a client owes an outstanding debt to him and has filed suit against her, recent court documents say.
Beeton
A lawsuit filed March 22 in Galveston County District Court asserts that Texas City resident Judy Loud has failed and refused to remit $7,328.28 to attorney Timothy A. Beeton, doing business as Simpson Beeton & Finegan LLP.more...
April 5, 2013
Banks Roused by the CFPB's Database of Complaints
A public database maintained by the Consumer Financial Protection Bureau now contains 90,000 customer complaints
When the Consumer Financial Protection Bureau in January 2012 proposed creating a free, public database of consumer complaints against credit-card issuers, financial firms urged officials to reconsider. In letters to the agency, trade groups argued that doing so would expose trade secrets and breach customer privacy. Posting company names without verifying the accuracy of the complaints levied against them, wrote the Consumer Data Industry Association, would unfairly cast reputable businesses “in the shadow of possible guilt.”more...
April 2, 2013
Judge OKs claim vs debt buyer for 'deceptive' tactics
NEW YORK (Reuters) - The largest U.S. buyer of unpaid consumer debt must face a consumer's claims that it engaged in deceptive practices during litigation to collect a debt, a state judge has ruled.
Nassau County District Court Judge Michael Ciaffa said it was the first time a New York state court had decided a debt buyer could be sued by a consumer under section 349 of the state's General Business Law, which says "deceptive acts or practices in the conduct of any business" are unlawful.more...
March 29, 2013
Galveston attorney sues client to recover $7K debt
GALVESTON – A local attorney claims a client owes an outstanding debt to him and has filed suit against her, recent court documents say.
A lawsuit filed March 22 in Galveston County District Court asserts that Texas City resident Judy Loud has failed and refused to remit $7,328.28 to attorney Timothy A. Beeton, doing business as Simpson Beeton & Finegan LLP.
According to the suit, Loud hired Beeton in August 2010 to represent her in a case heard in Galveston County Probate Court.more...
March 25, 2013
Hey Matthew Kish, please pay your credit card bill
Somewhere in the United States, there's a person with my name who doesn't pay at least one of his credit card bills. I know. A debt collector wants me to pay it for him.
In the past two weeks a major retailer called my cell phone 16 times. Each time I was away from my phone. Each time the caller didn't leave a message.more...
March 21, 2013
Jefferson Refinery accused of failing to pay company more than $160,000
A consulting company has filed suit against Jefferson Refinery, alleging the company failed to pay for more than $160,000 worth of services it provided. Refinery
ENGlobal US alleges it engaged in consulting and engineering services for Jefferson Refinery under an open account for which Jefferson Refinery was obligated to pay at a later date. Since then, however, Jefferson Refinery has refused to pay for the services, according to the complaint filed March 11 in Jefferson County District Court.more...
March 19, 2012
Bill would crack down on predatory practices of third party lawsuit lenders
AUSTIN – A central Texas lawmaker has authored a bill aimed to crack down on predatory practices by the state’s lawsuit lending industry.
State Rep. Doug Miller, (R-New Braunfels), is the sponsor of House Bill 1595, the Consumer Lawsuit Lending Act. At a hearing this week before the House Judiciary and Civil Jurisprudence Committee, Miller urged lawmakers to support the bill, which will impose new and necessary regulations on lawsuit loans.more...
March 17, 2013
Judge dismisses Harley dealer's lawsuit against John Doe prosecutor
A judge has dismissed the lawsuit of a Rice Lake Harley-Davidson dealer who claimed his forced subpoenaed appearance at a John Doe hearing in Milwaukee amounted to false imprisonment.
Christopher Brekken sued Milwaukee County Assistant District Attorney Bruce Landgraf last fall over the prosecutor's attempts in 2010 to get records from Brekken's dealership regarding some credit card purchases there. Brekken claimed that despite very involved attempts, he could not get the desired information.more...
March 13, 2013
Family outraged after debt collector threatens dead woman
CYPRESS - Most people don't want anything to do with bill collectors. But a Cypress woman is calling the tactics of one company "despicable" after she says the business called her home and threatened her sister for money.
Allison Currie’s sister died years ago.
Currie shared the phone message with the KHOU 11 News I-Team. In it, the caller claims to be from a civil investigations unit, and threatens a restraining order and lawsuit.more...
March 11, 2013
$39K debt sought by LVNV Funding
LVNV Funding has filed a lawsuit against Port Arthur local Elton White, alleging he refuses to pay a credit card balance of more than $39,000. credit-cards
The suit was filed Feb. 22 in Jefferson County District Court and alleges the defendant was advanced dollar amounts on a credit card account.more...
March 10, 2013
Discover Bank sues Vidor man for delinquent account
Discover Bank has filed suit against Vidor resident Paul Sergeant, seeking to collect on a past due account.
The suit was filed Feb. 12 in Orange County District Court.
According to the lawsuit, the parties entered into a card member agreement. The balance owing on the account is $3,766.87.more...
March 6, 2013
Debt issues top list of consumer complaints in Illinois
For the fifth year, consumer debt complaints topped the list of concerns reported to the Illinois attorney general's office, according to a 2012 Top 10 list released Tuesday.
Complaints "ranged from problems with mortgages, debt collection agencies to credit card companies," Attorney General Lisa Madigan said. "Even the most commonplace consumer transactions have become more complex and fraught with risk, and nowhere has that been more obvious than in the mortgage market, where toxic loans have destroyed our economy."more...
March 4, 2013
Avoiding the most common scams
This week is National Consumer Protection Week.
The Better Business Bureau released a list of the five most common scams, and how to avoid them.
"Scams often originate online, usually from foreign countries," said BBB President Tom Bartholomy. "Scammers use the anonymity provided by the Internet to victimize millions of people, efficiently and effectively."more...
February 28, 2013
Bank says man owes it more than $5,000 in missed credit card payments
A bank claims one of its card holders has failed to repay more than $5,000 he borrowed.
Discover Bank filed a lawsuit Feb. 15 in Jefferson County District Court against John D. Savoie. Discover-Bank-cardmore...
February 27, 2013
Investigation: Debt collector accused of harassing consumers
Action News investigated a debt collection company accused of harassing consumers for debts they don't owe.
The big concern is a debt collector could put a black mark on your credit report and thereby lower your credit score, which as we all know is critical to getting the best rate on a mortgage or car loan.
This is especially alarming in light of a recent report that shows once a mistake is made on your credit report, it's extremely difficult to get it removed.more...
February 25, 2013
Lending institution files suit over debt owed on Yukon
A lending institution has filed suit against the Beaumont woman who it claims failed to repay the more than $9,000 she owes on her vehicle.
Tobin
Santander Consumer USA claims it financed a 2005 GMC Yukon for defendant Brenda Hendrix on Oct. 8, 2007. Since then, however, Hendrix defaulted on her loan payment, according to the complaint filed Feb. 8 in Jefferson County District Court.more...
February 21, 2013
Shell Game?
Washington, DC - “Payment processing” used to involve standing in the checkout line and handing the cashier your pennies. (Remember checkout lines? Remember cashiers? Remember pennies?) In a lawsuit filed in federal court, the FTC alleges that Ideal Financial Solutions and more than a dozen individual and corporate defendants used an “intricate web of concealment” to game the payment processing system in a way that resulted in more than $25 million in unauthorized credit card charges and bank account debits.more...
February 19, 2012
Wrong credit reports not even the worst problem
Brenda Faith Campbell’s financial life was devastated after credit reporting agencies mistook her for someone with a similar name and a trail of unpaid bills. The Missouri resident was denied credit. Collection lawyers tried to garnish her wages. Eight months of trying to clean up the mess by herself failed. It took a lawsuit and two grueling days of trial before her case settled and the mistakes were corrected.
Campbell is one of scores of victims of credit report errors unearthed in 2012 by The Columbus Dispatch, which found egregious cases involving mistaken identities, paid debts marked as delinquent and people wrongly reported as dead.more...
February 18, 2012
Delay on credit card surcharge vote not expacted to thwart bill's passage
The state Legislature's efforts to ban credit card surcharges hit a last-minute delay last week, but a key sponsor still expects swift passage of the legislation.
y had been scheduled to vote on the ban Thursday, which would have sent the measure to Gov. Chris Christie's desk. But Assemblyman Gary S. Schaer (D-Passaic) said he and Speaker Sheila Y. Oliver (D-East Orange) decided at the last minute to delay the vote.
"We need to get additional clarity on one or two issues," said Schaer, chair of the Assembly's Financial Institutions and Insurance Committee. "It is my hope and the speaker's hope that we will have the bill up in the next bill list."more...
February 14, 2013
City lists rules for payday lenders but wants lawmakers to act
Houston officials laid out proposed restrictions on payday and auto title lenders Tuesday, drawing tepid support from the industry and disappointment from advocates who say the rules would not stop the spiral of debt for many low-income borrowers.
The Texas Legislature discussed regulating payday lending in 2011, but met stiff industry resistance and made little progress. Since then, Dallas, Austin, San Antonio and El Paso have adopted regulations. Dallas and Austin have been sued over their restrictions.more...
February 12, 2012
Smith County man sues debt collection agency for threatening court summons
MARSHALL – A Smith County man has filed a lawsuit against a debt collection agency claiming the company called him and threatened him with a court summons in an effort to collect on a debt.
Cody Osterberg filed suit against Commercial Recovery Systems Inc. on Feb. 1 in the Eastern District of Texas, Marshall Division.more...
February 9, 2012
The New Normal: Recovery After Credit Card Disaster
Whether you have fallen behind in your payments, are being sued, have filed or are planning to file for bankruptcy, there is hope and help to repair your credit.
Some simple and effective steps exist to help you through this tough time. While it can be embarrassing, it’s a topic that needs addressing. There are people who can help you get turned back around.more...
February 9, 2012
Debt collection horror stories
Collectors prohibited from threatening violence or calling incessantly
Debt collector horror stories abound: There are threats to dig up the dead relatives of those who couldn't pay their funeral bills, promises to imprison debtors or take their children into custody -- even warnings that pets will be killed.more...
January 30, 2012
Getting Out of Debt Cured My Depression
Getting out of debt can chase away the blues. New research, according to a recent article by LearnVest, pinpoints just how debt can lead to depression in the first place. A new study by Boston University's Financial Security Project, found that for every 10 percent increase in people's debt, their symptoms of depression increased by 14 percent. Interestingly, debt has nothing to do with actual clinical depression. Rather, it relates to the somewhat more benign day-to-day blues.
Paying off my credit cardsmore...
January 25, 2012
Credit card users could be paying so-called 'checkout fees' soon
We all use credit cards to shop. They can get us cash back and rewards and they help us build credit.
But the next time you swipe your card at the checkout, you could get hit with a brand new fee.
Historically, retailers haven't been allowed to charge you for buying something with a credit card, as opposed to using cash or debit. But all that could change.more...
January 23, 2013
Debt collector sued for making automated calls to cell phone
SHERMAN – A Sanger resident has filed a lawsuit against a debt collector claiming that the collector was making numerous “robocalls” to his cellular phone. abusive-phone-calls
Billy Walker filed suit against Joseph, Mann and Creed on Jan. 16 in the Eastern District of Texas, Sherman Division.more...
January 19, 2013
How to Restructure Credit Card Debt
For consumers struggling to make ends meet and racking up credit card debt and barely making minimum payments, hardship programs might provide a welcome relief.
Many credit card companies offer these programs that target borrowers who have fallen behind on payments. They typically offer debtors lower interest rates as well as reduced payments, fees and penalties. In general, most hardship programs fall into two categories: short-term, which could be for a few months or up to a year, or permanent which is until the credit card balance is paid.more...
January 17, 2013
Strategic Default: When is it OK to Walk Away?
When David Valadez walked away from his home loans, he drew some criticism. Friends told him: "You have a contract with the lender and it's wrong to quit paying your mortgage just because your property lost value."
His response: "Yes, I signed a contract. It's a business contract, and business contracts are broken all the time."
The lender foreclosed on Valadez's condominium unit in San Jose, Calif., a few months ago. Looking back, Valadez says he's glad he was able to view the strategic default as a financial decision, not an emotional one.more...
January 14, 2013
Consumers Impacted by Major Mortgage Events
What the week's big mortgage moves mean for consumers
Last week brought three big developments to the nation's beleaguered mortgage landscape. For consumers, the complex moves have been mostly mystifying, but experts say they all aim at turning the page.
"There is a strong desire to put behind us all this period of time -- the aftermath of the darkest period in American finance. All these things [announced this week] are intended to do that," said John Taylor, president and CEO of the National Community Reinvestment Coalition, a Washington, D.C.-based community advocacy group. "There are good and bad things in it for consumers."more...
January 10, 2013
Capital One sues over $15K debt
Capital One National Association has filed suit against Beaumont resident Martin Exiga, alleging he owes more than $15,000 on a past due small business credit account. Capital_One-building
The suit was filed Dec. 31 in Jefferson County District Court.
According to the lawsuit, Capital One advancing dollar amounts to the defendant on a credit account that he became obligated to pay.
In its suit, Capital One alleges that the defendant ceased making payments on the account, thereby creating a default.more...
January 8, 2012
New York antitrust trial begins over credit cards’ forced arbitrations
Three of the largest U.S. credit card issuers headed to trial on Monday to defend accusations that they colluded to force customers to agree to settle disputes through arbitration rather than in class-action lawsuits.
American Express Co., Discover Financial Services and Citigroup Inc. face the allegations in two antitrust lawsuits filed by customers who had to sign arbitration agreements in order to get credit cards.more...
January 4, 2012
Man fears losing $200,000 worth of equity in home
A man claims a mortgage company is attempting to wrongfully foreclose on his home, despite its failure to provide him with notice of its intent. wells-fargo.gi.top
Todd David Bryson filed a lawsuit Dec. 28 in Jefferson County District Court against Wells Fargo Bank.
In his complaint, Bryson alleges he stumbled upon a foreclosure notice for his home, which sits on 11.37 acres of land.
Bryson had previously granted a lien to Wells Fargo in an attempt to guarantee a $700,000 promissory. The interest in the lien was Bryson’s home, according to the complaint.more...
January 2, 2012
If someone attaches a judgment to one's house, is it still unsecured?
If my understanding is correct, it looks like since I am within my exemption rights with the equity I have now, that I can have the lien on my real estate removed if I choose to and qualify for chapter 7. I will have to see if the landlord will in fact place a lien and force me to file chapter 7. He might go after bank accounts first, and garnish wages if I get a job at some time in the future. From what I have read it is recommended to the creditor who wins a judgment to ask for payment and work something out before going through all the legal costs of trying to enforce a judgment.
522{f} of the bk code provides for a judgment lein to be stripped in bk if, it impairs an exemption you'd ordinarily be entitled to take.more...
December 31, 2012
Phantom Debt Collectors
Hundreds of thousands of cash-strapped Americans were being targeted by abusive debt collectors operating out of overseas call centers, part of what authorities were calling a massive scam that targeted struggling Americans -- especially those who have gone online to apply for payday loans. Armed with personal information from those pilfered applications, the threatening callers, who claimed to be debt collectors poised to initiate legal action, managed to pry loose millions of dollars from their victims -- even when the victims never owed money in the first place.
"This is what we call a phantom debt collection scam," said Jon Leibowitz, the chairman of the Federal Trade Commission. "It's a very pernicious and innovative new fraud."more...
December 27, 2012
Minn. AG reaches settlement with big debt buyer
ST. PAUL, Minn. — Bob Iverson is still on edge after a collector harassed him for months about $6,000 in debt he said belonged to someone else with his name.
"You don't know. Is it going to end? Is it going to come four years down the road, three years down the road?" Iverson said during a news conference with Attorney General Lori Swanson.
The company, Midland Funding LLC, has agreed to pay the state $500,000 to settle a lawsuit Swanson filed in 2011. It will also follow a series of restrictions designed to address problems Swanson raised in the lawsuit. And the company must also resolve outstanding and future consumer complaints like Iverson's.more...
December 26, 2012
LAWMAKER WANTS PAY PHONE CREDIT CARD CHARGES DISCLOSED
Measure would require per-minute costs be posted; one soldier’s 4-second call: $41
State legislation has been introduced to warn pay phone users of the per-minute costs when using a credit card, which can run up hidden charges of as much as $20 for every 20 seconds.
Sen. Ted Lieu, D-Torrance, said the notification measure is particularly important to protect deployed members of the armed forces who need to make calls during brief airport layovers and all they have handy is a credit card. One company targeted for complaints from troops is Otay Mesa’s BBG Communications and its related German firm BBC Global.more...
December 24, 2012
Texas Supreme Court orders electronic filing in civil cases
The Texas Supreme Court has ordered that civil cases — including family, probate, county at-law and district courts — be filed uniformly and electronically in the near future.
The edict affects cases in large metropolitan areas and appellate courts starting Jan. 1, 2014. Cases filed in the state’s smallest jurisdictions must comply two years later.
The new system will lower filing and processing costs for the courts and for the litigants. But more important, it adds transparency in the ability to access court documents remotely at any time.more...
December 18, 2012
Judge: 90% of Credit Card Lawsuits Can’t Prove Borrower Owes Money
Credit card debt collection may achieve the dubious distinction of making mortgage servicers look good.
The New York Times has been keeping a bit of a watch on this area, and reported earlier that credit card debt collection was a heavy user of robosigned affidavits. A new story recounts how credit card companies frequently file erroneous lawsuits, sometimes saying a customer owes money when they’ve paid off the balance (sound familiar?) but more often, the consumer disputes the accuracy of the balance. And unlike foreclosure-land, where even after the revelation of widespread and varied mortgage abuses, most judges are pro-bank, in the credit card realm, the conduct of lenders is so bad that experienced judges are skeptical of them. From the article:more...
December 14, 2012
Helpful Holiday Personal Finance Tips For Texas Consumers
AUSTIN, Texas, Dec. 12, 2012 — AUSTIN, Texas, Dec. 12, 2012 /PRNewswire-USNewswire/ -- Holiday season can be stressful for Texas consumers, especially if the prospect of buying gifts will add to an already burdensome debt load.
"Careful planning and active communication are important tools to effectively managing personal finances, particularly if a consumer is struggling to make payments on their current debt obligations or being contacted by a debt collector," ACA of Texas President Bruce Cummings said.
Plan and Budget: Holiday gift giving doesn't need to break the bank; after all, it's the thought that counts.more...
December 12, 2012
Brent Coon settles $170K debt suit brought by AmEx
Beaumont attorney Brent Coon has settled a lawsuit alleging his law firm owes American Express more than $170,000 in charges on a past due credit card account.
As previously reported, American Express sued Brent Coon & Associates on Dec. 27, 2010, claiming the firm refuses to pay its corporate credit card balance and owes the company $170,818.72 for goods and services purchased.
A court official told the Southeast Texas Record that in November the parties announced to the court that the case, which was on the December trial docket, had been settled.more...
December 10, 2012
There's a Chance Your Credit Report Is Wrong and the New Consumer Agency Is Hamstrung
What do you regard as the most infuriating experience you ever endured -- dealing with the cranky Patty/Selma clerks at the Department of Motor Vehicles? Driving behind slow-driving geezers? Watching Fox News?
How about discovering you have a less-than-stellar credit reports despite having a stellar credit history?
After I learned that a relative had been declined for a credit card I urged him to look up his credit reports and then decided to check mine, which I assumed were top-notch, since I have a nearly three-decade history of paying bills on time.more...
December 6, 2012
Virginian law firm sued for attempting to collect debt in Texas
SHERMAN – After attempting to collect a debt from a Collin County resident, a Virginian law firm has been sued for not paying the appropriate bond with the Texas Secretary of State in violation of federal law.
Jeremy Painkin filed suit against Dominion Law Associates on Nov. 27 in the Eastern District of Texas, Sherman Division.
Painkin states that the defendant attempted to collect a debt for Capital One Bank by contacting him at his Texas address.
According to the lawsuit, the defendant does not have a bond with the Texas Secretary of State and therefore, cannot legally collect a debt in Texas.more...
December 4, 2012
Fast cash may end up costing consumers
BBB warns consumers to be wary when applying for payday or car title loans
Better Business Bureau is warning consumers looking for payday or car title loans to research a company or website’s reputation and read all the fine print before giving your personal information or signing any agreements.
Read the fine print before accepting a car title or payday loan.more...
This year, BBB has received more than 3,300 complaints nationwide against payday lenders. Many of those complaints allege fraud — including companies initiating loans or withdrawing money without permission, or calling to collect a debt that the consumer claims was never owed. Other complaints allege poor customer service or unscrupulous collection tactics.
November 30, 2012
Defending Yourself in a Credit Card Lawsuit
What was once almost unheard of has now become common practice: individuals being sued over credit card debt. Increasingly, credit card companies and third party debt collectors are filing lawsuits against consumers in small claims and county courts. Public records searches reveal some parties suing in hundreds of cases each month in Harris County alone. Is it all bad news or is there some light at the end of the tunnel for consumers defending themselves on defaulted debts? From the perspective of the newly-served consumer, it is all a nightmare. From the vantage point of consumer attorneys, a lawsuit is just another tactic used by debt collectors, oftentimes one that can be defended against and possibly disposed of.more...
November 27, 2012
Mariposa Community Center May Be Foreclosed
A Texas-based mortgage company has sued Mariposa developer High Desert Investment Corp. to foreclose on a $3.2 million loan for the construction of the community center at the far north Rio Rancho subdivision.
The lawsuit filed early this month in 13th Judicial District Court in Sandoval County by LPP Mortgage Ltd. claims High Desert defaulted on the loan for the 9,870-square-foot community center.
Opened in 2009, the Mariposa community center featured an indoor and outdoor pool, a multipurpose room for group exercise or community meetings and a full-featured gym.more...
November 23, 2012
Denton County man sues Capital One for violating Fair Credit Reporting Act
SHERMAN – A Denton County resident has filed a lawsuit claiming that Capital One refused to honor an agreement to reduce his credit card debt and continued to report the debt on his credit report in violation of federal law.
Peyton Inge filed suit against CSC Credit Services Inc. and Capital One (USA) Bank N.A. on Nov. 14 in the Eastern District of Texas, Sherman Division.
The plaintiff allegedly received written communication from Global Credit & Collection Corp. dated Feb. 7, 2011, in an attempt to collect a debt arising from Inge’s Capital One credit card. Inge contacted the Global representative and agreed to a payment plan.more...
November 20, 2012
Average US credit card debt per borrower up in 3Q
Americans cranked up their use of credit cards in the third quarter, racking up more debt than a year ago, while also being less diligent about making payments on time, an analysis of consumer-credit data shows.
The average credit card debt per borrower in the U.S. grew 4.9 percent in the July-to-September period from a year earlier to $4,996, credit reporting agency TransUnion said Monday.
At the same time, the rate of credit card payments at least 90 days overdue hit 0.75 percent, up from 0.71 percent in the third quarter of last year, the firm said.more...
November 17, 2012
Denton County man sues Capital One for violating Fair Credit Reporting Act
SHERMAN – A Denton County resident has filed a lawsuit claiming that Capital One refused to honor an agreement to reduce his credit card debt and continued to report the debt on his credit report in violation of federal law.
Peyton Inge filed suit against CSC Credit Services Inc. and Capital One (USA) Bank N.A. on Nov. 14 in the Eastern District of Texas, Sherman Division.
The plaintiff allegedly received written communication from Global Credit & Collection Corp. dated Feb. 7, 2011, in an attempt to collect a debt arising from Inge’s Capital One credit card.more...
November 14, 2012
Debt collector sued for threatening woman with lawsuit
SHERMAN – A debt collector is being sued for violating federal and Texas laws by failing to provide a woman with written validation of an alleged debt and for threatening to file a lawsuit against her.
Melissa Stephens filed suit against Internal Credit Systems Inc. on Nov. 8 in the Eastern District of Texas, Sherman Division.
The defendant allegedly began contacting Stephens in September in an attempt to collect a debt owed to Ultimate Family Fitness. more...
November 10, 2012
Lawsuits against bill collectors projected to drop
Lawsuits aimed at harsh or deceptive debt collectors have been setting records year after year -- until now.
For the first time since at least 2004, consumers will bring fewer lawsuits in federal courts this year under the U.S. Fair Debt Collection Practices Act (FDCPA), according to WebRecon, a firm in Grand Rapids, Mich., that tracks the cases. The law is the main consumer protection statute against collection abuses.
It's too early to conclude that the explosion of consumer outrage at debt collectors is cooling off. But even some consumer lawyers say that a kinder, gentler collection atmosphere is in the making.more...
November 8, 2012
Facebook to answer for allowing kids to pay
Facebook may be facing a lawsuit for letting children rack up charges on their parents’ credit cards which they thought were virtual, game-related tokens.
The mothers of two children have filed a class action suit. Glynis Bohannon and Julie Wright were both victims of large-scale credit card charges imposed by Facebook after their children, referred to in the complaint as “I.B.” and “J.W.”, played games on the social media network that they thought had no actual cost.more...
November 5, 2012
'Phony debt collectors' could be targeting you
HOUSTON – They are accused of threatening people nationwide.
Victims say their phone calls threaten legal action and even an imminent arrest if they don’t pay for a debt they neither recognize or owe.
But the KHOU 11 News I-Team has found that this so-called Houston company is not only part of a new trend in scams, but may have ties to a much bigger ring of “phony debt collectors.”more...
November 1, 2012
FIA Card Services sues over delinquent credit card account
FIA Card Services has filed a lawsuit against Beaumont resident Vickie Nguyen, alleging she refuses to pay a credit card balance of more than $17,000.
The suit was filed Oct. 23 in Jefferson County District Court.
Court records show that on Aug. 31 FIA Card Services sent a letter to the defendant demanding payment in full of the account. However, no further payments have been made.more...
October 29, 2012
Hip-Hop Producer Sean Garrett Ordered to Pay $108K In Amex Debt Lawsuit
Don't mess with American Express -- that's the lesson for hip-hop mega-producer Sean Garrett, who was just ordered to fork over $108,084 to the credit card company.
TMZ broke the story ... Amex sued Garrett -- who's banged out hits with Beyonce, Usher, and Nicki Minaj -- claiming he never paid off the hefty tab on his card.
Amex filed a motion for default judgment last month -- because Garrett didn't respond to the lawsuit -- and the judge ruled in Amex's favor.more...
October 25, 2012
Capital One Accused of Tricking Credit Card Holders into Losing Payment Grace Period
Accepting a Capitol One Bank offer to transfer debt from another credit card lender comes with hidden, and costly, consequences, according to a lawsuit filed against the company.
Plaintiffs in a class action case claim Capital One tricks customers who accept a “0% balance transfer” deal. The offer seems enticing because the company says consumers will enjoy no interest for six to 12 months on the debt they move over. more...
October 23, 2012
7 ways to fight a debt lawsuit
If you're being sued by a debt collector, you should know how to defend yourself, whether the case has merit or not.
What happens when you are sued by a debt collector? While it may feel like the end of the world, it's a pretty routine occurrence in courts across the country. "Most debt collection law firms file hundreds of lawsuits a day, assuming that 99% of defendants will not answer," says Atlanta bankruptcy attorney Jonathan Ginsberg.
While it would be easy to dismiss this as simply a matter of debtors getting what they deserve, it's not always so cut and dried. It's not unheard-of for a debtor to be hounded by multiple collection agencies for the same debt. Or "zombie debts" may show up in court years after the debtor defaulted.more...
October 17, 2012
Credit card debt collection lawsuits surge
'Flooding the courts'
In August, The New York Times reported that "while the amount of bad debt has fallen since the financial crisis, lenders are trying to work through the soured loans and clean up their books" - and as a result, "lawsuits against credit card borrowers are flooding the courts."
Many of the nation's largest banks and debt collection companies have filed hundreds of lawsuits in Lancaster County. Of the 708 credit card lawsuits filed here through the end of October, both Citibank and FIA Card Services (Bank of America) filed more than 100 apiece; Discover Card filed 62.
Messages to Citibank and Bank of America seeking comment were not returned.more...
October 15, 2012
‘You should’ve served US better and died!’ Debt collector berates disabled veteran
A debt collector, angered that a disabled US Army veteran was living off of disability payments, told him he “should have died” in war instead of "taking advantage of" other Americans.
Minnesota-based debt collection agency Gurstel Chargo is now facing a lawsuit for verbally abusing the Army vet over a $6,000 defaulted student loan, Courthouse News reports.
“If you would have served our country better you would not be a disabled veteran living off Social Security while the rest of us honest Americans work our asses off,” one of the agency’s debt collectors allegedly told the vet. “Too bad, you should have died.”more...
October 11, 2012
Government sues Wells Fargo for reckless lending practices
Wells Fargo engaged in a long-standing practice of reckless and fraudulent mortgage lending that cost the government hundreds of millions of dollars in insurance claims when those loans went bad, federal prosecutors alleged Tuesday.
In a civil lawsuit filed in Manhattan federal court, government lawyers accused the San Francisco-based bank of concealing the true nature of at least 6,320 shoddy mortgages that were insured by the Federal Housing Administration. The government is seeking unspecified civil penalties that could reach into the hundreds of millions of dollars.
For nearly a decade, the nation’s largest home mortgage lender routinely ignored warnings from its own employees of loans rife with serious violations or fraud, prosecutors said.more...
October 9, 2012
U.S. sues Wells Fargo in civil mortgage fraud case
* Complaint brought by U.S. Attorney in Manhattan
* Alleges misconduct related to gov't-insured home loans
* Wells Fargo, the No. 4 U.S. bank, denies allegations
Oct 9 (Reuters) - The U.S. government filed a civil mortgage fraud lawsuit on Tuesday against Wells Fargo & Co, the latest legal volley against big banks for their lending during the housing boom.
The complaint, brought by the U.S. Attorney in Manhattan, seeks damages and civil penalties from Wells Fargo for more than 10 years of alleged misconduct related to government-insured Federal Housing Administration loans.more...
October 5, 2012
Cordray Says Credit Cards Yield Fewer Complaints Than Expected
The U.S. Consumer Financial Protection Bureau hasn’t fielded as many complaints about credit cards as it anticipated when it began operating last year, its director said.
The CFPB’s director, Richard Cordray, made the remarks yesterday at a hearing of the Senate Banking Committee, where he presented the bureau’s semi-annual report to Congress.
The CFPB started a consumer response system on July 21, 2011, and began by taking complaints on credit cards. It subsequently expanded the system to include mortgages on Dec. 1, then bank accounts and services, private student loans, and consumer loans on March 1.more...
October 3, 2012
Texas Statute Of Limitations on Debt
A statute of limitations (SOL) is a statute (law) that prescribes the period of time during which legal action may be taken. In respect to debt obligations, the statute of limitations sets forth the specific time frames during which the creditor or debt collector can legally sue the debtor.
What is the statute of limitations on debts in the State of Texas?
The statute of limitations on debt for residents of the State of Texas is four (4) years. In Texas, this refers to oral agreements, written contracts (car loans, installment loans), promissory notes and open accounts (such as credit card credit lines).
When does the clock start on the four year statute of limitations?more...
October 1, 2012
Lawsuit Says Capital One Practices Illegal Debt Collection
According to a federal class action lawsuit filed in White Plains, N.Y., Capital One Bank and Cohen and Slamowitz, a law firm that represents it, “practice illegal credit and collection practices.”
The charge is made by attorney Shimshon Wexler, who filed suit against Capital One and Cohen and Slamowitz for violating the Fair Debt Collection Practices Act. The FDCP was added in 1978 to the Consumer Credit Protection Act, which eliminates abusive debt collection practices.
The complaint was filed Sept. 25on behalf of “all individuals with a New York address who have had an action filed against them in a Supreme Court of the State of New York for a consumer debt(s) for less than $3,000″ and in which Cohen and Slamowitz is Capital One’s lawyer.more...
September 28, 2012
Hood wants credit card lawsuits sent back to Miss. court
Mississippi Attorney General Jim Hood is arguing that his lawsuits against six credit card companies should be heard in state court.
Hood's office filed a motion to remand the suits on Sept. 7, a month after the defendants had them removed to federal court. Hood, who hired two out-of-state firms to represent the State in the cases, argues that his case is neither a mass action nor a class action and must be heard in state court.
Class action lawsuits are removable to federal court under the Class Action Fairness Act. Hood says every federal circuit court of appeal has resolved the question of whether parens patriae actions filed by AGs constitute class actions.more...
September 27, 2012
Consumer Portfolio sues Jeff. County woman over $30,000 missed payments
A California corporation alleges one of its debtors has failed to make more than $30,000 worth of promised payments.
Consumer Portfolio Services filed a lawsuit Sept. 17 in Jefferson County District Court against Jacqueline M. Pete.
In its complaint, Consumer Portfolio alleges it entered into a retail installment sale contract with Pete. Under the terms of the contract, Pete agreed to make monthly payments of $480.83, according to the complaint.more...
September 24, 2012
State targets Sylvania debt collector
Firm accused of badgering victims of credit-card fraud tied to porn sites
A Sylvania debt-collection company now in the cross hairs of Ohio Attorney General Mike DeWine has been squeezing victims of credit-card fraud for years for illegal charges racked up by others on adult Web sites.
The victims include a 74-year-old Virginia lawyer, a 90-year-old Missouri grandmother, and a university administrator who needed help from attorneys general in two states to clear his name.
More than 400 consumers across the country have complained to Mr. DeWine's office and the Better Business Bureau since 2009 about Collection and Recovery Bureau.more...
September 20, 2012
Debt-settlement companies draw increasing criticism
“Creditors have better memories than debtors.” If it weren’t for those words inscribed on the wall, visitors to Richard Cooper’s Markham, Ont., offices could be forgiven for thinking they’d wandered into a management consulting firm. But those who deal in debt have their own lingo, their own humour—and Cooper understands that Benjamin Franklin quotation better than most. His business is helping creditors and debtors forget.
Cooper’s company, Total Debt Freedom, is one of a handful of niche players performing a specialized service for indebted Canadians.more...
September 18, 2012
District Attorneys rent out their letterhead to debt collectors, split the shakedown loot
Over 300 US district attorneys have made arrangements with strong-arm debt collectors, through which the debt collectors send out threatening notices on the DAs' letterhead to people who've allegedly bounced checks, and split the payments they get back (including hefty "service fees" levied by the collectors) with the DAs' offices. Jessica Silver-Greenberg writes in the NYT:
Debt collectors have come under fire for illegally menacing people behind on their bills with threats of jail. What makes this approach unusual is that the ultimatum comes with the imprimatur of law enforcement itself — though it is made before any prosecutor has determined a crime has been committed.more...
September 14, 2012
Where Does Your Spouse's Credit Card Debt Go When They Die?
By far, the saddest cases in my years as a financial advisor were assisting widows after their spouses' deaths. Not only does a surviving spouse have a great deal to manage emotionally, but the financial burden can feel equally overwhelming.
Later in this article we'll take a look at who's responsible for a late spouse's credit card debt, but let's first address three important financial actions to take soon after the death of a spouse.
1. Alert credit agencies: Unfortunately, these days, the open, abandoned credit file of a deceased person is like a hand-engraved invitation for identity theft. So, the first step you should take in dealing with the deceased's finances is to alert the three major credit-reporting agencies -- Experian, Equifax, and TransUnion -- of the death. Experts at LowCards.com also advise you to request that a "deceased notice" and the explicit statement "Do not issue credit" be added to the decedent's file. To further protect your deceased spouse's identity, LowCards.com recommends you ask to be alerted if any new credit applications are made in your spouse's name. Make the requests in writing and include a certified copy of the death certificate. Keep copies of the letters for your records and send via certified mail.more...
September 12, 2012
Dallas Texas Jury’s Unanimous Verdict Finds Lockhart, Morris & Montgomery, Inc. Guilty Of Violating State and Federal Law
A unanimous jury verdict found in favor of the plaintiff in the recent trial of Shannon Whaley v. Morris & Montgomery, Inc, and John Hickman (No. DC-10-14604) in the 68th Judicial District Court, Dallas County Texas, for violations of the Fair Debt Collection Practices Act(FDCPA), the Texas Debt Collection Practices Act (TDCPA) and the Texas Deceptive Trade Practices Consumer Protection Act (DTPA).The plaintiff was represented by Noah Radbil of Weisberg & Meyers, LLC, Attorneys for Consumers. Lockhart, Morris & Montgomery and John Hickman were represented by Robbie Malone of Robbie Malone, PLLC, and the jury verdict awarded Ms. Malone no attorney fees for her representation of the defendants in this trial.
Shannon Whaley is a nurse who, in 2007, signed up for a home study course through the College Network. She financed the cost through a loan from Southeast Financial Credit Union. After receiving the course materials, Ms. Whaley discovered that the home study course was not what she expected. She unsuccessfully attempted to return the unopened and unused materials. After the College Network allegedly refused to accept her return, and then refused to communicate with her altogether, Ms. Whaley stopped making payments on the $5,880 loan.more...
September 10, 2012
Credit card lawsuits often slipshod
Credit card companies and collection agencies are churning out slapdash lawsuits claiming unpaid debts, say exasperated consumer advocates and some judges.
Judges complain that many lawsuits are so lacking in documentation that it’s impossible for them to know who’s right or wrong. Advocates say the companies sometimes victimize card holders by inflating the amounts owed, not giving their targets proper notice and suing for debts already paid.
“They do get pretty loosey-goosey on documents,” said Frank Cox, the chief magistrate court judge in Georgia’s Cobb County. “When they are contested, most of the time they can’t present sufficient evidence to win the lawsuit.”more...
September 6, 2012
Are You Facing a Flawed Credit Card Lawsuit?
In order to clear non-performing and delinquent accounts off the books, credit card companies are becoming more aggressive as these delinquent accounts add up to billions of dollars worth of “bad debt”. If you have been unable to pay your credit card debt, it is likely to be turned over to a law firm that specializes in collections. More and more of these law firms are popping up whose sole purpose is taking credit card companies as clients to collect on outstanding credit card accounts. Needless to say, it is unsettling enough that the chances you will be sued is much greater due to the credit card companies use of law firms, what is even more unsettling is credit card companies using faulty, inaccurate and incomplete information as the basis for filing a suit.
According to an article written by Jessica Silver-Greenberg, reporter for the New York Times,
Credit card companies are taking consumers to court over debts without regard to accuracy.more...
September 4, 2012
Burger Chain Puts Collection Agency in Deep Fryer
Who would have thought a corporation would be protecting an employee against the talons of a collection agency?
Whataburger is suing nationally known collection agency NCO, who has a history for making harassing debt collection phone calls. The collection agency refused to stop calling the chain's toll-free number to attempt to collect a debt from an unnamed employee, which is what prompted the action.
Fed-up managers at Whataburger sued NCO for punitive damages, claiming it called the restaurant's customer relations line repeatedly to collect a debt allegedly owed by an employee. Whataburger Restaurants sued NCO Financial Systems in Bexar County Court, San Antonio Texas. It claims the Pennsylvania-based collector has been calling its phone line at least once a day every day.more...
August 31, 2012
Retailer Surcharges Would Dampen Credit Card Use
AUSTIN, Texas -- A proposed swipe fee settlement would give retailers the green light to charge consumers a surcharge for using a credit card, but a new poll suggests that consumers will not graciously accept the extra charge.
According to a new poll by CreditCards.com, nearly two in three Americans -- 65 percent -- said they would stop using their credit cards if retailers start adding extra fees to credit card purchases -- regardless of how small that fee may be.
The extra surcharge has been prohibited by Visa Inc. and MasterCard. However, a deal now on the table to settle a 2005 class-action lawsuit would allow retailers to implement a surcharge, possibly in early 2013, to help recoup the swipe fees (also known as interchange fees) they have to pay every time a customer pays with a credit card, according to CreditCards.com.more...
August 28, 2012
Houston law firm sued for violating Texas, federal debt collection laws
SHERMAN - A Wylie woman has filed a lawsuit against a Houston law firm that claims the firm violated Texas and federal debt collection law by threatening to file a lawsuit against her.
Cristy Galan filed suit against ANH Regent, doing business as Law Offices of Regent & Associates, and Regent & Associates PC, doing business as Law Offices of Regent & Associates, on Aug. 16 in the Eastern District of Texas, Sherman Division.
The defendant allegedly made collection attempts by sending letters and placing telephone calls to Galan's cellular telephone.more...
August 23, 2012
Credit Card Robo-Signers and Bogus Debt
Let's say I loaned you $500. It's a friendly loan, so we agree to some terms and you start sending me a check every month. I'm a little fickle however, so I keep changing the date I expect your check to arrive, arbitrarily change the interest rate, and charge you fees when you're late or when I feel like it - or simply claim I never got your payment. What should have been, in theory, five simple payments of one hundred dollars has now become a convoluted mess of fuzzy math, bad accounting, and erroneous made up fines. Because I keep adding to your original debt payments have gone on for close to a year and have included dozens of confusing communications and frustrating phone calls. One day, out of the blue, you get a letter from me with a court date and a statement for $2000 I claim you now owe me.
If you don't show up for the court appearance, I win by default and you owe me $2000 for a $500 loan. If you do show up, you're going up against me and a stack of affidavits signed by my friends and family swearing that you owe me two grand. So here's the question: Do you come to court and fight me?more...
August 21, 2012
Bank seeks repayment of $200K in loans
A bank has filed suit against the Jefferson County corporation that it claims failed to repay more than $200,000 worth of loans.
Wells Fargo Bank claims its successor, Wachovia, loaned $50,447.12 to defendant Statewide Consolidated Community Development Corp. on July 28, 1999.
Again, on Feb. 10, 2006, Wachovia loaned Statewide $26,680 and issued the company another promissory note on May 16, 2005, worth $116,790, according to the complaint filed Aug. 8 in Jefferson County District Court.more...
August 17, 2012
Wells Fargo sues debtors for breach of contract
Wells Fargo Bank has filed a breach of contract suit against Beaumont residents Patrick and Katrina Vaughn, alleging the couple has defaulted on a credit card account.
The suit was filed Aug. 13 in Jefferson County District Court.
According to the petition, the couple executed a credit card customer agreement with Wells Fargo in the original amount of $9,850, which they first accessed on Oct. 17, 2001.
"The account provided for defendants to make payments to plaintiff of all principal and interest," the suit states. "Defendants failed to abide by the terms of the account by failing and refusing to make payments," the suit states.more...
August 14, 2012
Banks falsify credit card lawsuits in 90 percent of cases?
US credit card companies have been churning out lawsuits and improperly collecting debt from consumers 90 percent of the time, at least according to a New York judge who deals with these cases.
Lawsuits produced by credit car companies to recoup unpaid bills often rely on inaccurate documents, incomplete records and generic testimonies from witnesses who repeatedly testify, the New York Times reported. The companies often sue clients for more money than is owed.
“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” said Brooklyn civil court judge Noach Dear. The judge told the Times he sees as many as 100 such cases a day.
By “robo-signing” documents, banks “robotically” mass-produce similar papers for different clients, without properly reviewing them. In the process some of the papers get falsified.more...
August 11, 2012
Credit Card Use Drops In June
Americans cut back on credit card use in June, a sign that high unemployment and slow growth have made some more cautious about spending.
Still, total consumer borrowing increased as many kept taking out loans to buy cars and attend school.
Consumer borrowing rose by $6.5 billion in June from May to total $2.58 trillion, the Federal Reserve said Tuesday. That's just below the all-time high reached in July 2008.
Auto and student loans rose by $10.2 billion to $1.71 trillion in June.
Credit card debt fell $3.7 billion to $865 billion. That's only 1.6 percent above the post-recession low reached in April 2011. more...
August 9, 2012
Man sued over unpaid medical bill
A Colorado company has filed suit against the man that it claims owes it more than $1,000 in medical bills he incurred following a collision.
Medical Lien Management, doing business as Bridgewell, claims it treated defendant Nicholas Crosson after he was injured in an accident on July 8, 2009. Crosson incurred $1,687 worth of costs at Medical Lien Management, according to the complaint filed July 30 in Jefferson County District Court.more...
August 7, 2012
Debt collection law firm sued for violating Collection Practices Act
SHERMAN - An Ohio debt collection law firm is being sued by an Allen man who claims the firm did not disclose in voicemails that it was attempting to collect on a debt.
Bill Reese filed suit against Lawrence Roach, doing business as the Law Office of Larry Roach, and Does 1-10 on July 26 in the Eastern District of Texas, Sherman Division.
The defendants allegedly placed collection calls to Reese demanding payment for a debt from a Sam's Club credit card. In February, defendant's representative left a voicemail and failed to state that the call was from a debt collector, according to the suit.more...
August 3, 2012
Credit Card Debt Lawsuits
If you fall behind on or stop paying your credit cards, your credit card company has a right to file a lawsuit against you. You need to be aware of how and when a credit card lawsuit might happen and what your options are to defend against it.more...
When You Might Get Sued for Credit Card Debt
If you are behind on your credit card payments, the credit card company or debt collector hired by the credit card company might sue you to recover the money you owe.
The credit card company will sue you if you break the terms of the contract. When you originally obtained the credit card, you signed an agreement either electronically or in writing. This agreement defines both you and your credit card company’s rights and responsibilities. Falling behind or failing to make payments on the credit card typically constitutes a violation of that agreement and the credit card company may then sue you.more...
July 31, 2012
Settling Your Debts
Some people have expressed skepticism that you can actually do debt settlement on their own using our strategy or other creative methods of settling debts. Read letters from readers who were highly successful. You can also watch our video on how to settle your debts.
Note: This page addresses debt which is with a collection agency (CA). For debts still with original creditors (still with the credit card company and NOT with a collection agency), go here. How do you know if your debt is still with the original creditor (OC) and not with a collection agency? Simple: call the credit card company.more...
July 26, 2012
Credit Card Relief Programs - What's to Come for 2013?
Debt settlement or debt negotiation is now a regulated credit card relief program and can be the fastest way to pay off credit cards, while also saving consumers the most amount of money in the end. Lawsuit defense, creditor harassment protection, asset protection and having a litigation preparedness program provided to consumers are all amongst the many necessary services that must go along with a debt settlement program. Any debt settlement company not including these key services for consumers that are entering into a debt settlement program, are failing to provide their customers with the level of protection that is needed."
Debt Management or debt consolidation can be a viable option for the consumer that has had only a slight decrease in their income and for the consumer that wants a lower interest rate. Debt management plans with A Rated debt management companies can be a safe option for consumers that qualify.
July 24, 2012
Average Student Loan Debt For Borrowers Under Age 30 Is Nearly $21,000, Study Finds
Twenty-somethings owe a record amount of student loan debt and are stuck in a weak job market that does not give them a clear path toward paying that debt off.
Total student loan debt among borrowers under age 30 has more than doubled since the beginning of 2005 to $292 billion, as of the end of March, according to data released on Tuesday by the Federal Reserve Bank of New York. The average student loan debt burden for borrowers under age 30, as of the end of March, has risen 56 percent since the beginning of 2005 to a record $20,835.
The economic bust has coincided with a student loan boom. Overall student debt has skyrocketed 148 percent since the beginning of 2005 to $902 billion, as of the end of March, according to the New York Fed. more...
July 21, 2012
Though Bad Debts Fall, Lawsuits Over Collection Practices Rise
Lawsuits filed by credit card customers and other debtors are surging, according to new data on filings, despite a decline in card debt and bankruptcies.
Though debt collectors long have been accused of employing unfair tactics -- no one throws down a welcome mat for debt collectors -- the report comes as a surprise, since there's less bad debt to fight over. Some experts say the spike in lawsuits might reflect more aggressive filings by lawsuit-happy consumer attorneys rather than more illegal behavior by debt collectors and reporting agencies. Others disagree, saying the credit industry is more intensely pursuing whatever debt exists.
First, the numbers: Some 890 consumer credit lawsuits were filed in May 2012 in the 90 federal court districts in all 50 states and the District of Columbia, according to the Transactional Records Access Clearinghouse, a data gathering and research organization based at Syracuse University.more...
July 19, 2012
Capital One to pay $210M over marketing tactics
WASHINGTON (AP) — The Obama administration’s consumer watchdog agency flexed its enforcement muscles for the first time Wednesday and ordered Capital One Bank to repay millions of credit card customers allegedly tricked into buying costly add-on services.
Capital One will pay $210 million in refunds and regulatory fines. Most of the money will go directly to customers.
The bank’s phone-sales operators told customers that services like payment protection and credit monitoring were free or mandatory or offered more benefits than they did, federal officials said. The hard selling targeted people with poor credit, they said.more...
July 17, 2012
'We Won' vs. 'You Lost': Reactions to Credit Card Settlement
The credit card industry's proposed deal to settle long-pending retailer lawsuits set interchange watchers chattering over the weekend, divided over how much each side won and lost in the deal.
Conventional wisdom held that the long-pending lawsuits were destined to be settled before their September trial date. Conventional wisdom also held that Visa (NYSE: V), MasterCard and the big banks would pay billions of dollars and possibly lift their "no surcharging" rules to settle the lawsuits – but that the merchants would have to pry lasting changes to the interchange system out of the card networks' cold, dead fingers.more...
July 12, 2012
Lawyers crack down on school teacher for student loan debt
Lawyers drained Linda Brice’s bank account and seized a quarter of her take-home pay, or more than $900 a month. Brice, a first-grade teacher and Coast Guard veteran, begged for mercy, saying she couldn’t afford food, gas or utilities.more...
July 9, 2012
Summons scofflaws face new nemesis in tough Texas collections agencies
Private contractors are poised to intensify the city's efforts to collect hundreds of millions of dollars in unpaid parking and other tickets.more...
July 6, 2012
Collin County man sues company after it obtained unauthorized copy of credit report
SHERMAN - A Collin County resident has filed a lawsuit against a company after finding the company obtained a copy of his credit report without his permission.more...
July 3, 2012
Teacher’s Wages Garnished as U.S. Goes After Loan Default
Lawyers drained Linda Brice’s bank account and seized a quarter of her take-home pay, or more than $900 a month. Brice, a first-grade teacher and Coast Guard veteran, begged for mercy, saying she couldn’t afford food, gas or utilities.more...
June 29, 2012
20% of Credit Card Complaints Aimed at Capital OneIt was revealed Thursday that Capital One (NYSE: COF), the diversified financial services holding company, received 20% of credit card complaints filed with the Consumer Financial Protection Bureau.more...
June 26, 2012
Some banks require customers to pay all costs in legal disputes
Some consumers might be in for a surprise if they take their banks to court over checking or credit card disputes: A provision in account agreements says even if you win, you lose.more...
June 25, 2012
Lawsuit challenges consumer protection bureau
A Texas bank and two advocacy groups say the Consumer Financial Protection Bureau has too much power and lacks oversight.
As the Supreme Court prepares to rule on healthcare reform, a new lawsuit is taking aim at another of President Obama's signature accomplishments — creation of the Consumer Financial Protection more...
June 20, 2012
CresCom Bank files debt collection lawsuit against Lavin car dealership
CresCom Bank has filed a debt collection lawsuit against Myrtle Beach area automobile dealer Lavin Sales Inc. and its co-owners, John and Howie Lavin, claiming the two men and their business defaulted on a pair of loans totaling more than $3.1 million earlier this year.
June 18, 2012
OCC Probing JPMorgan Chase Credit Card Collections
JPMorgan Chase & Co. took procedural shortcuts and used faulty account records in suing tens of thousands of delinquent credit card borrowers for at least two years, current and former employees say.more...
June 14, 2012
Little guy has little chance against debt collectors
Debt-collection lawsuits dominated the civil caseload at Quincy District Court last year, accounting for 80 percent of the 3,376 cases heard there.more...
June 12, 2012
Credit Card Protection Plans Draw State Lawsuits, Federal Scrutiny
If you have a credit card, you've probably heard the pitch. It comes from a telemarketer, or perhaps from a mailer included with your statement, and warns that "life is unpredictable." Prepare for the worst, the pitch goes on to say, by purchasing a plan that will handle your credit card debt if you lose your job, become disabled or die.more...
June 8, 2012
Consumers cut back on credit card use in April
WASHINGTON - Americans cut back sharply on their credit card purchases in April, a sign that some may be worried about the slowdown in hiring.
The Federal Reserve said Thursday that consumers increased borrowing by $6.5 billion in April, just half of the March gain.more...
June 6, 2012
Credit Score Myths
Finding accurate information about credit scores can be like looking for a needle in a haystack. Credit counseling agency American Financial Solutions offers real information about managing credit scores as well as where to find answers.
On May 29th, 2012, American Financial Solutions (AFS), a non-profit credit counseling agency, participated on a panel discussing ways to improve credit score education. The guest was Craig Watts, Public Affairs Director for Fair Isaac and Company (FICO) and the discussion was led by Gail Cunningham, Vice President of Membership and Public Relations for the National Foundation for Credit Counseling (NFCC). From that discussion it became apparent that there are many myths surrounding credit scores and it can be difficult to find reliable information. Listed below AFS lists some of those myths as well as the truth on how they impact your credit score.more...
June 3, 2012
Consumer Wins $62K Lawsuit Against Bank For 56 Harassing Robo-Calls
A citizen harassed by auto-dialed robo-calls on his cell phone about a debt he never owed has won his lawsuit in federal court. The citizen charged the bank with a violation of the Telephone Consumer Protection Act (TCPA) and Michigan's Collection Practices Act (MCPA).
The TCPA prohibits calls to a person's cell phone using an automatic telephone dialing system or using a prerecorded or artificial voice message without that person's express consent.more...
May 31, 2012
CKE Restaurants Files Brief in Support of Lawsuit Fighting Inflated Credit and Debit Card Swipe Fees
CKE joins other QSR chains in support of suit by National Retail Federation against Federal Reserve Board
CKE Restaurants, Inc., parent company of Carl’s Jr.® and Hardee’s® brands, today announced it has joined with other quick-serve restaurant and convenience store chains in filling an amicus brief in support of a lawsuit against the Federal Reserve regarding unjustifiably high swipe fees charged by major banks. CKE and the other chains strongly support the pending lawsuit, which states that the Federal Reserve failed to follow key requirements of a 2010 law when it adopted a cap on debit card swipe fees.more...
May 29, 2012
Credit Card Lawsuit: How To Defeat Summary Judgment
Essentially, Summary judgment will be ruled if the facts presented during the course of the credit card lawsuit proceedings are undisputed, and accurate. Many credit card companies who are pressing charges against delinquent debtors are hoping for a summary judgment because it’s basically a quick way to get the money they wanted with very little cost. On the other hand, if the debtor fights against and actually defeated summary judgment, the creditor and their plaintiff are in for a long haul.more...
May 23, 2012
Credit Card Protection Plans Draw State Lawsuits, Federal Scrutiny
If you have a credit card, you've probably heard the pitch. It comes from a telemarketer, or perhaps from a mailer included with your statement, and warns that "life is unpredictable." Prepare for the worst, the pitch goes on to say, by purchasing a plan that will handle your credit card debt if you lose your job, become disabled or die.
What it won't tell you is that for years, card issuers have been making fat profits off these payment protection programs while complaints from consumers and activists have piled up. But now, a slew of lawsuits and a federal investigation have put the plans themselves on an unpredictable course.more...
May 17, 2012
Five Easy Ways To Reduce Credit Card Debt
Did you know that according to census data, the average American household carries nearly $8,000 in credit card debt? For some, that’s manageable. But for most households, it signifies a pattern of overspending and paying outrageous amounts of interest. Here is some advice on how to reduce your credit card debt.
Being buried in credit card debt is far from uncommon. But that doesn’t mean that’s the way it should be. Carrying a high balance on your credit card – or worse, several credit cards – can take a big bite out of your budget. You might only be able to pay the minimum payment each month, and that does very little in the way of paying down the principal. In fact, most credit card companies set a minimum payment that only covers interest in an effort to keep you in debt as long as possible.more...
May 16, 2012
What is arbitration? You sign away rights. Is that OK?
Cellphone and credit card applications typically contain an arbitration clause that keeps you from suing the phone carrier or bank if a dispute arises. Often, the bank gets to pick the arbitrator. The federal government is looking to see if arbitration clauses give companies too much power.
If you have applied for a checking account, cellphone, or credit card, you have probably signed away some of your rights.more...
May 11, 2012
TEXAS STATE LAW:PROTECTION OF CONSUMERS OF FINANCIAL SERVICES
FINANCE CODE
TITLE 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES
CHAPTER 392. DEBT COLLECTION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 392.001. DEFINITIONS. In this chapter:
(1) "Consumer" means an individual who has a consumer debt.
(2) "Consumer debt" means an obligation, or an alleged obligation, primarily for personal, family, or household purposes and arising from a transaction or alleged transaction.more...
May 9, 2012
Debt collector sued for not paying bond with Texas Secretary of State
SHERMAN - A Denton County resident has filed a lawsuit against a debt collector who attempted to collect on an outstanding debt before the company paid the appropriate fees with the Texas Secretary of State.more...
May 6, 2012
W. Va. Woman Fights to Collect $10 Million from Debt Collectors
In a twist of irony, a West Virginia woman is trying to collect money from a collection agency. Diana Mey, of Wheeling, W. Va., won the largest judgment ever against an abusive debt collection company -- more than $10 million.more...
May 3, 2012
Collection agency sued for contacting debtor after cease and desist letter
A debt collection agency is being sued for continuing to contact a debtor even after it received a cease and desist letter.
Edith Edwards filed suit against Capital Management Services on April 20 in the Eastern District of Texas, Beaumont Division.more...
May 1, 2012
6 Ways To Keep Aggressive Debt Collectors At Bay
Debt collectors are a lot like vultures. Once they sense that you're in trouble, they'll keep picking at you until there's nothing left. They shamelessly (and often illegally) harass consumers into paying their debt, ruining hundreds of innocent lives in the process. For consumers, debt is bad enough, but the unrelentingly aggressive and demeaning phone calls from company collectors or third-party agencies can make you feel like you've got a serious stalker. Anyone who's ever been in that position will tell you it's somewhere they never want to be again in their lives.more...
April 26, 2012
Company accused of repeatedly calling plaintiff settles
Last October, Rita Coulon filed suit against Consumer Portfolio Services, alleging she was repeatedly harassed with phone calls seeking repayment of a debt.
Two months later, the parties reached a settlement and the case was dismissed, court records show.more...
April 24, 2012
New bill could make it easier for debt collectors to get you to pay
Three years ago, debt collectors began coming after Hayden Scheider for $18,000, a loan he says he never took out.
"My reaction was, 'I don't owe this. I don't know anything about it,'" he said.more...
April 20, 2012
Shell card case prompts judge to ask: Who cares?
Lawsuit challenged contents of Shell credit card receipts
Royal Dutch Shell Plc has won a U.S. appeals court's dismissal of a $1 billion lawsuit over the contents of its credit card receipts, in a decision questioning why anyone should care how the oil company acted.more...
April 18, 2012
Feds Back Down, OK Credit Card Fee Before You Even Get the Card
Federal authorities are formally backing away from rules that prevented banks from charging application and other fees before credit card accounts are opened.more...
April 16, 2012
State files suit against 7 credit card companies
HONOLULU (AP) — The state has filed seven lawsuits against banks and credit card companies that allegedly charge Hawaii customers for payment protection programs they don't want or can't qualify for.more...
April 12, 2012
Lenders Again Dealing Credit to Risky Clients
Annette Alejandro just emerged from bankruptcy protection and doesn't have a job, and her car was repossessed last year. Still, after spending her days job hunting, she returns to her apartment in Brooklyn where, in disbelief, she sorts through the piles of credit card and auto loan offers that have come in the mail. more...
April 10, 2012
Heartland Suit Dismissed
A lingering lawsuit against Heartland Payment Systems and two acquiring banks, KeyBank and Heartland Bank, appears to have been put to rest.
On March 14, a federal judge in Houston dismissed, for a second time, a suit filed by a group of financial institutions against Heartland and its acquirers for breach of contract, breach of fiduciary duty and negligence, based on the banks' "alleged failure to monitor Heartland's computer-system security." The suit was one of several filed against Heartland in 2009 after a data breach, which went undetected for more than a year, gave cyberhackers access to 130 million payment card accounts.more...
April 6, 2012
Credit Card Collections Under Scrutiny
American Banker just published a three part series about how Bank of America sold defaulted credit card debt to a company called CACH LLC, some of which were old accounts acquired from MBNA. Bank of America apparently purchased some these accounts in 2006 and the records of the credit card accounts were "faulty."more...
April 4, 2012
OCC Probing JPMorgan Chase Credit Card Collections
JPMorgan Chase & Co. took procedural shortcuts and used faulty account records in suing tens of thousands of delinquent credit card borrowers for at least two years, current and former employees say.more...
April 1, 2012
The failure of a Des Moines restaurant chain to fully comply with a federal anti-identity theft law will soon lead to free soft drinks for some of its former patrons, assuming a federal judge approves.
Lawyers in a complicated class-action lawsuit have submitted a proposed settlement that will, if it is approved by U.S. District Judge James Gritzner, eventually lead to $170,000 for the plaintiffs' attorneys and coupons for people who can prove they used a credit card or debit card during a three-year period at Palmer's Deli & Market.more...
March 28, 2012
Disputed $515 debt and collection efforts leads to two lawsuits
SHERMAN - A Sherman woman has filed a lawsuit against a debt collection agency after the company refused to take a disputed debt off of her credit report.more...
March 26, 2012
Robosigning Redux? Regulator Probes Chase Over Credit Card Collections
The Office of the Comptroller of the Currency is reportedly taking a good, hard look at the practices that credit card giant JP Morgan Chase used in its credit card collections business. American Banker has reported at length on this new "robosigning" bombshell. "The bank's errors could call into question the legitimacy of billions of dollars in outstanding claims against debtors and of legal judgments Chase has already won," it says in an article published earlier this week. more...
March 22, 2012
Debt Collection
A consumer having difficulty paying a debt can contact the creditor before the bill goes to a collector. Sometimes the creditor will refinance or otherwise modify the agreement rather than pay a debt collector. If not, the debtor has certain rights. Debt collectors must treat you fairly. Of course, the law does not erase any legitimate debt you owe. Sometimes consumers confuse third-party collectors (collection agencies) with the in-house collection department of a creditor. Professional debt collection services are third-parties to the transaction that created the debt and are collecting for the creditor. Third party debt collectors are regulated by the federal Fair Debt Collection Practices Act and the Texas Debt Collection Practices Act.more...
March 20, 2012
HAYS v. CITIBANK (SOUTH DAKOTA), N.A.
LUTHER H. HAYS, Appellant,
v.
CITIBANK (SOUTH DAKOTA), N.A., Appellee.
No. 05-11-00187-CV.
Court of Appeals of Texas, Fifth District, Dallas.
Before Justices Lang, Murphy and Myers.
Opinion By Justice Murphy.
In this credit card debt case, Luther H. Hays challenges a traditional summary judgment rendered in favor of Citibank (South Dakota), N.A. Hays presents six issues, claiming (1) his affidavit created a fact issue on Citibank's breach of contract claim, (2) as to the account-stated claim, there is no evidence Hays agreed to a certain amount owed or that account statements were delivered to him, (3) Citibank's evidence created a fact issue on Citibank's breach of contract claim as to the applicable finance charge, (4) summary judgment on an implied contract was improper because Citibank claimed the existence of an "express contract" between the parties, (5) summary judgment on the breach of contract claim was error because of evidence Hays had not seen any account statements, and (6) he was entitled to rely on the terms of an express contract, and the trial court erred in finding he acknowledged any other terms or amounts due. We affirm the trial court's judgment and issue this memorandum opinion pursuant to Texas Rule of Appellate Procedure 47.4.more...
March 16, 2012
Chase's S.A. credit-card operation in spotlight
Allegations of wrongdoing at JPMorgan Chase bank's credit-card operations in San Antonio won't go away.
Current and former Chase employees in San Antonio told American Banker in a story posted on its website Monday night that the bank "took procedural shortcuts and used faulty account records in suing tens of thousands of delinquent credit card borrowers for at least two years."more...
March 14, 2012
Credit card arbitration clauses
Three California women believed that they would receive $300 in automatic credit when they qualified for and received new Aspire VISA credit cards. Instead they were charged nearly $290 in unexpected fees and finance charges. In 2008, the women decided to file a class action lawsuit in federal court against CompuCredit, the firm that issued the cards. The case was based on alleged violations of the federal Credit Repair Organizations Act (CROA) and a 1996 California statute that reiterated the paramount right of state residents to have the opportunity to seek redress of any issues in a court of law. more...
March 8, 2012
Debt Collection FAQs: A Guide for Consumers
If you're behind in paying your bills, or a creditor's records mistakenly make it appear that you are, a debt collector may be contacting you.
The Federal Trade Commission (FTC), the nation's consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.more...
March 6, 2012
Reports on Chase's Halt of Credit Card Collection Law Suits
When lenders obtain judgments against their customers that fail to pay credit card debt, explains attorney Alex Kapetan of Wites & Kapetan, they will often sell these judgments to debt buying companies in large volume at a discounted rate. In selling these judgments, which are sometimes referred to as "accounts," it is far less complicated for the seller to draft a sale agreement that says the buyer is purchasing the accounts "as is", rather than doing the due diligence in reviewing hundreds of thousands of accounts, if not millions of accounts for accuracy. Alex Kapetan believes that this may result in attempts by debt buyers "to collect on an amount that may not be accurate or on a judgment that does not exist." more...
March 2, 2012
50-State Campaign to Reform Debt Collecting Practices Moves into Kansas
OPEKA, Kan.--(BUSINESS WIRE)--Only two weeks after Oklahoma lawmakers filed the Bartmann Ethical Debt Collection Act (SB 1430), the champion of the legislation moved north to the Kansas capital where he met with representatives of the Kansas Attorney General's office. An industry insider and consumer advocate, Bill Bartmann is CEO of CFS II and the leader of a 50-state campaign to curb rampant consumer abuse by unregulated bill collectors.more...
February 29, 2012
Tyler woman sues payday loan company
TYLER - A Tyler woman has filed a lawsuit against a payday loan company after it threatened to charge her with theft for nonpayment of her loan.
Tammy Bratusek filed suit against Texas Thrifty Loans on Feb. 21 in the Eastern District of Texas, Tyler Division.more...
February 26, 2012
Grubb & Ellis Co. files for bankruptcy protection
Grubb & Ellis Co. says it has filed for bankruptcy protection in a bid to stave off creditors amid mounting debt.
The Santa Ana, Calif.-based commercial real estate company also said Tuesday it has arranged to sell most of its assets to the parent of rival commercial real estate services company Newmark Knight Frank.more...
February 23, 2012
Regulators warn of 'phantom' debt collectors'
The FTC warns of firms seeking debt collection from consumers who don't owe. Officials shut down a Villa Park operation that allegedly collected about $5 million in so-called phantom debts.
Federal regulators warned of a new scam in which so-called phantom debt collectors harass people into paying bills they don't even owe, typically preying on Americans already burdened with financial problems. more...
February 21, 2012
Pennsylvania is among the safest states to fall behind on credit card bills
Not that you should. Not that you'd ever want to. But if someday you happen to fall behind on credit card payments, Pennsylvania is among the safest places in the country to do it.
It is one of four states -- the others being North Carolina, South Carolina and Texas -- where debt collectors cannot garnish your wages if you default, according to Clayton S. Morrow, a consumer protection attorney in Pittsburgh.more...
February 16, 2012
Austin-based Stratfor faces lawsuit over data breach
Austin-based Stratfor, which lost information on thousands of its customers in computer hacking attacks against its website in December, now finds itself under legal fire.
Stratfor this week responded in a Texas court to a federal class action suit filed against it in New York.more...
February 13, 2012
Ore. woman, 85, sues bank over debt collection call that brought police to her door
PORTLAND, Ore. — An 85-year-old Eugene, Ore., woman who says a call from an aggressive debt collector brought police to her door and left her with a $1,000 bill for an emergency suicide evaluation is suing Wells Fargo bank.more...
February 10, 2012
Elderly Eugene woman accuses Wells Fargo of overbearing, unlawful bill collection tactics
Like so many Americans, 85-year-old Anne Sessions got behind on a credit card bill and took calls from cranky debt collectors. But none prepared her for the phone call that put three cops on her door and forced her into an emergency "suicide evaluation" for which she was billed $1,055.more...
February 5, 2012
Supreme Court backs credit card binding arbitration
8-1 vote a setback for consumer groups, who see the practice as too biased
The U.S. Supreme Court dealt at least a partial setback Tuesday to credit card customers seeking to break free from the bonds of binding arbitration, the often business-friendly procedure that blocks consumers from taking their complaints to court.more...
February 2, 2012
Debt collector sued for violations of deceptive trade laws
SHERMAN - A debt collector is being sued for calling a consumer and leaving messages without disclosing its true business name in violation of federal and Texas laws.
Linda Whatley Dobbs filed suit against debt collection company Mrs BPO LLC on Jan. 10 in the Eastern District of Texas, Sherman Division.more...
January 27, 2012
Judge orders area law firm's suit against AmEx into arbitration
A Beaumont judge recently granted American Express' motion to compel arbitration in litigation brought by an area law firm over alleged fraudulent charges.
As previously reported, the Beaumont law firm Benckenstein, Norvell & Nathan filed suit against American Express on June 3 in Jefferson County District for refusing to investigate and remove fraudulent credit charges made by the firm's former office manager.more...
January 25, 2012
Plano hardware store sued for displaying credit card expiration numbers on receipts
SHERMAN - A Plano hardware store is being sued for violating the Fair and Accurate Credit Transaction Act by allegedly displaying credit card expiration numbers on customers' receipts.more...
January 23, 2012
Lawsuit: Debt collector broke patient privacy laws
MINNEAPOLIS — Attorney General Lori Swanson sued a debt collection agency that works with two Minnesota hospitals on Thursday, saying it failed to keep health care records for tens of thousands of patients confidential and did not tell patients just how much it was involved in their health care.more...
January 19, 2012
Bank sues card holder over credit card debt
A bank claims one of its credit card holders owes more than $10,000 in unpaid debts.
American Express Bank filed a lawsuit Dec. 27 in Jefferson County District Court against Sharene L. Mouton.more...
January 17, 2012
Ex-spouse's bankruptcy can be problem after divorce
My husband and I were divorced about six months ago. The divorce decree says he is responsible for most of our debts. He now has filed for bankruptcy. Can the creditors still come after me for debts that he doesn't owe because of his bankruptcy?more...
January 13, 2012
What happened at Chase's credit-card collections arm?
Jeff Horwitz has an astonishing story about Chase's credit-card collections efforts, which look as though they're riddled with sloppy record-keeping and even possible fraud.
Consider Dade County, for instance, in Florida: Chase was filing claims at the rate of 640 per month in January. And then, after April — nothing. There were a lot of layoffs in New York, too:more...
January 11, 2012
U.S. Supreme Court rules credit repair firms can force arbitration
Justices rule that credit repair firms can block lawsuits if customers' agreements carry arbitration clauses. The ruling is the latest in a string to back such clauses over consumers' right to sue.
Reporting from Washington—
A 1996 law sought to protect struggling consumers from businesses promising to improve their credit rating, and specifically gave customers the right to sue any firm in violation.more...
January 9, 2012
The danger in docking the pay of exempt employees
Last week, the Southern District of Texas denied a motion by Power Line Services Inc. ("Power Line") to dismiss a class action alleging that the company improperly docked employee paychecks. The claim arises out of a company policy permitting Power Line to make payroll deductions for any charges made on a corporate credit card for which an employee fails to provide an itemized receipt. The lawsuit is entitled Thurmon, et al. v. Power Line Services Inc., et al., and was brought under the Fair Labor Standards Act. more...
January 5, 2012
Craig Watkins Explains How He Got So Broke
On Christmas, The Dallas Morning News gifted Dallas County District Attorney Craig Watkins with a big fat lump of coal in article form, detailing a lawsuit filed against him by Citibank that alleges he owes more than $15,000 on his credit card plus interest.more...
January 3, 2012
Debt collector's alleged tactics lead to lawsuit
There is an unprecedented lawsuit against Bank of America and a debt collector it hired. A Cape Coral woman wants them to pay up after she says they harassed her about her late husband's debts.
The plaintiff's attorney is already calling this a landmark victory for everyone who gets harassing phone calls from debt collectors.more...
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