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Case ID: 3133 | Credit / Debt | 02/06/2004
A statewide class action has been filed in New York against collections specialist, Trans-Continental Credit & Collection Corporation. The action is brought on behalf of all New York residents who have received collection letters from Trans-Continental that contain language that consumers claim is deceptive, unfair and contains false threats. The action is brought under the federal Fair Debt Collections Practices Act and seeks statutory damages as well as injunctive and declaratory relief.
According to consumers, Trans-Continental has violated the federal Fair Debt Collection Practices Act in two ways. Consumers allege that Trans-Continental's initial collection letters contain deceptive and unfair language and that they do not contain the statutorily required statement regarding the consumers' right to dispute the validity of the debt. The language consumers assert is deceptive and contains false threats mentions that failure to pay the alleged debt will result in Trans-Continental recommending to consumers’ creditors that they report the consumers' debt to the various credit reporting bureaus. This is followed by a statement indicating that this may result in consumers being unable to obtain credit for years. The consumers contend that this statement is untrue, is intended to coerce them into making an immediate payment and contains false threats, all of which are forbidden by the Fair Debt Collection Practices Act. Further, the consumers claim that Trans-Continental's initial letters do not contain federally mandated language regarding consumers' rights to dispute the validity of the debt. Under the Fair Debt Collection Practices Act, consumers are given 30 days to dispute the validity of a debt which is the subject of collection by a third party. Any initial collection letter that does not disclose this, or which contains language which overshadows this information, violates the act. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Credit / Debt Cases of Interest A class-action lawsuit was filed on behalf of a tenant of Villas Parkmerced, San Francisco's largest apartment development with 3,456 units. The parties have reached a $1.6 million settlement in an action filed against Ameriquest Mortgage Company, on behalf of all persons who obtained Ameriquest, Argent Mortgage Company, Town & Country Credit Corporation; or Olympus Mortgage Company variable rate loans between June 1, 1998, and June 30, 2003, which were secured by real properties in the State of California, and who paid a prepayment charge in excess of that permitted by the California Civil Code. Persons with outstanding loans, who might still be subject to prepayment charges from these companies should also submit claim forms. Claim forms must be postmarked no later than November 19, 2004, to be considered valid. A class action has been filed against Experian Information Solutions, Inc., a credit reporting agency, by Steven and Melody Millett after Steven's Social Security number was stolen and used by another individual over the course of 13 years. The Milletts claim that Experian should have known that the Social Security Number was being used by more than one person and that upon being notified of the error, should have corrected their error. The lawsuit alleges negligent misrepresentation, fraud and failure to comply with the Fair Credit Reporting Act and seeks damages and injunctive relief. New York State Attorney General Eliot Spitzer filed a $250 million fraud suit against H&R Block Inc., accusing the nation's largest tax preparation service of fraudulently pushing clients to invest their tax refunds in retirement accounts that had high fees and low returns. The lawsuit is on behalf of customers who have opened the Express IRA accounts. Federal laws regulating debt collectors hold them to strict standards for the protection of U.S. consumers. The class has been certified in an action filed against debt collector Coldata on behalf of all persons with Illinois addresses who were sent a letter on or after December 5, 2001, seeking to collect credit card debt containing a settlement offer of 50 percent or more with a specific deadline.
Baltimore lending company, Admiral Mortgage Inc., faces a class action lawsuit accusing it of charging excessive fees on its secondary mortgage loans and other predatory lending practices.
Plaintiffs in the case are Rodney G. Coster and Teresa L. Coster of Essex, Md., and Amanda Connor and Kevin F. Ashe of Rosedale, Md.
The Costers claim that Admiral charged them an origination fee of $5,936 on a $74,200 second mortgage -- 8 percent of the loan amount. They also allege they were charged more than $1,400 in credit report, processing, document preparation and underwriting fees. |
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