California Consumers Target Bridgeport Financial for Unfair Collection Practices |
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A statewide class action has been filed in California against collection specialist, Bridgeport Financial, Inc. The action is brought on behalf of all California consumers who have received collection letters from Bridgeport that required them to dispute the validity of the debt under collection in writing only. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.
According to consumers, Bridgeport's collection letters violate the federal Fair Debt Collection Practices Act. Specifically, consumers claim that the letters are misleading and untrue. Under the Act, consumers are given the right to dispute the validity of debts that are under collection. According to the consumers, this dispute can be in either oral or written form. The consumers claim that Bridgeport's letters specifically stated that consumers must dispute the validity of the debt under collection in writing. Consumers allege that this has the effect of misleading them and misrepresents their rights under federal law. They claim that these alleged violations entitle them to statutory damages. The consumers also claim that Bridgeport has mailed hundreds, if not thousands of these letters, creating a very numerous class.
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Other Credit / Debt Cases of Interest
A national class action has been filed in New York against collection agency DPL Associates Ltd on behalf of all consumers who have received collection letters from DPL that require consumers to dispute the validity of the debt in writing or do not give the consumer the name and contact information for the creditor that has employed DPL to pursue the debt. The consumers claim that these letters violate the federal Fair Debt Collection Practices Act.
A statewide class action has been filed in California against collection specialist, Midland Credit Management, Inc., who operate under the name Kansas Midland Credit Management, Inc. The action is brought on behalf of all California residents who received a collection letter from Midland which offered to settle their alleged debt for a lesser amount, if payment was made immediately. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief. A class action lawsuit was filed New York on behalf of those who purchased Oppenheimer mutual funds from the AIG Advisor Group, with parent company American International Group Inc as the defendant. A nationwide class action has been filed in Pennsylvania against mortgage insurance giant, Radian Guaranty. The action is brought on behalf of all U.S. residents who have obtained mortgage insurance from Radian at a less than best rate, and have not been informed that an adverse decision was made against them as a result of utilizing a credit report to set their insurance premium. The action is brought under the federal Fair Credit Reporting Act and seeks actual and statutory damages as well as injunctive and declaratory relief. In addition to the multiple companies suing Visa and Mastercard over excessive processing fees, two more retail groups announced that they have filed class action suits against Visa USA, MasterCard Inc. and a number of major banks over the fees they charge for processing credit card transactions.
The latest cases, filed in the U.S. Court for the Eastern District of New York, were brought by the American Booksellers Association and the National Grocers Association and several of its members, including Affiliated Foods Midwest, Coborn's Inc., D'Agostino's Supermarkets and the Minnesota Grocers Association.
Collection agencies are regulated by state and federal laws to ensure that they only use methods that are fair and above-board. A class action has been filed against DBS Collection Agency of Zanesville, Ohio, on behalf of all persons who were sued by the company in collection lawsuits between August 1998 and March 2001, alleging that the company committed mail and wire fraud and violated consumers' constitutional rights, the federal Fair Debt Collection Practices Act and Ohio's Consumer Sales Practices Act.
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