Debtor Sues Collection Agency for Making False Statements |
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A class action lawsuit has been filed in the Northern District Court of Illinois against Nationwide Recovery Systems, Ltd. (NRS) for violations of the Fair Debt Collection Practices Act (FDCPA). Class members seek a declaration from the court that defendants have violated the FDCPA and seek compensatory damages.
Specifically, the complaint alleges that NRS sent the Nicole Kimsey an initial form collection letter dated 7/19/04 demanding payment of a delinquent consumer debt that she owed to AT&T Wireless. The letter stated, in part:
For a limited time only, AT&T Wireless…has authorized us to offer you the opportunity to settle your account for a lump sum of $161.80. In order to take advantage of this offer, simply deliver the payment to [us]….
Kimsey alleges that NRS falsely stated that the offer was for a "limited time only" as defendants are always ready to settle delinquent debts for 90 percent of the balance. As such, they have violated the FDCPA.
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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. A Houston consumer protection attorney filed suit against Drive Financial Services, L.P. (Drive) alleging numerous violations of federal and state consumer protection laws while attempting to collect debts. According to the lawsuit, filed on behalf of Houston resident Velincia Plummer and others, Drive made it a practice to send people who fell behind in their payments a letter that violated the Federal Fair Debt Collection Practices Act and the Texas Debt Collection Act. Among other alleged violations, the letter threatens wage garnishment and pretends to be from an attorney or law firm, when in fact it was sent by Drive. Both are violations of consumer protection laws.
A class action lawsuit has been filed against Illinois collection agent Enterprise Recovery Systems. The suit alleges that in its efforts to collect on debts allegedly due to Northern Illinois University, the defendant engaged in abusive and deceptive collection practices that violated federal fair debt collection practices laws. The suit seeks to certify a statewide class and collect actual and punitive damages on behalf of the plaintiffs. Whether it is a home loan, a car loan, or a debt consolidation loan, borrowers must be wary of predatory lenders. In many cases, a predatory lender will use deception, high-pressure sales tactics, or excessive fees to lock a borrower into a cycle of debt. All too often, the borrower victimized by a predatory lender ends up in bankruptcy, or loses his home, or is forced into a cycle of debt. A class action has been filed against Sterling National Bank, a New York City based bank that leases and finances telecommunications equipment, for violations of New Jersey Consumer Fraud Act. Class members seek declaratory and injunctive relief terminating their obligations to make lease payments on telecommunications equipment to the Bank. A class action lawsuit has been filed in the Eastern District Court of Pennsylvania against RCS Center Corporation, a California-based collection agency, for violations of the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from engaging in abusive, deceptive and unfair collection practices. Class members seek an injunction from having RCS communicate with the lead plaintiff, damages, attorney's fees and costs of the litigation.
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