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A statewide class action has been filed in Missouri against Greensboro Home Equity, Inc. and Household Financial Services, Inc. The action is brought on behalf of all Missouri residents who borrowed money from Greensboro or Household where the promissory note contained a pre-payment penalty in excess of 2% of the loan value or which assessed any prepayment penalty more than five years after the closing date of the loan. The action is brought under Missouri consumer protection law and seeks compensatory, statutory and punitive damages as well as injunctive and declaratory relief.

A class action has been filed by West Virginia homeowners against banking giant Chase Manhattan alleging that the company has systematically preyed on unsophisticated consumers by enticing them into refinancing their homes with loans that are loaded with fees, have higher interest rates than represented and are not serviced appropriately, costing consumers thousands of dollars and possibly their homes. Brought on behalf of all West Virginia mortgage borrowers whose loans have been serviced by Chase at any time since October 9, 1999, the action seeks compensatory, statutory and punitive damages as well as injunctive and declaratory relief.

Consumer debt counseling is a good alternative to bankruptcy as long as you choose a reputable debt management company. A class action has been filed against debt management company Ameridebt, Inc. and related companies on behalf of consumers who purchased a debt management plan from them and paid any “contributions” as part of the plan, who allege that the companies have conspired together in violation of the federal Racketeer influenced and Corrupt Organizations Act to defraud unsuspecting, financially-strapped consumers.

A statewide class action has been filed in California against collection specialist, Encore Receivable Management, Inc. The action is brought on behalf of all California residents who received a collection letter from Encore 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 has been filed against New York collection agent Riddle & Associates, PC. The suit alleges that the defendant engaged in abusive and deceptive collection practices that violated federal fair debt collection practices laws. The suit seeks to certify a national class and collect actual and punitive damages on behalf of the plaintiffs.

Auditing firms that don’t report accounting errors are in trouble these days. A class action has been filed against law firm Ernst & Young, LLP, on behalf of NextCard, Inc. shareholders who purchased NextCard securities between April 19, 2000, and October 30, 2001. The shareholders allege that the law firm, acting as NextCard’s auditor, actively participated in a scheme to defraud them in violation of federal securities laws.

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