Consumer Sues Commonwealth Financial for Violations of FDCPA |
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A class action lawsuit has been filed in the Southern District Court of Indiana against Commonwealth Financial Systems, Inc. for violations of the Fair Debt Collection Practices Act (FDCPA) which prohibits debt collectors from engaging in abusive, deceptive and unfair collection practices. Class members seek statutory damages, reasonable attorney's fees and costs of the litigation.
Specifically, the complaint alleges that the plaintiff owed money to Education Direct which Commonwealth Financial Services was attempting to collect. Commonwealth sent her two letters seeking payment; however the letters allegedly violate the FDCPA because they did not give her notice that she had 30 days to challenge the validity of the debt.
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Other Credit / Debt Cases of Interest
A class action lawsuit has been filed in the Eastern District Court of New York against Credit Collection Services, Inc., a New York based collection agency, for violations of the Fair Debt Collection Practices Act (FDCPA) which prohibits debt collectors from engaging in abusive, deceptive and unfair collection practices. Class members seek damages, attorney's fees and costs of the litigation. California law requires that mortgage companies fully disclose all charges and fees related to the origination of a residential loan. On July 28, 2003, the court granted final approval to the parties' $12.6+ million settlement in a class action against AccuBanc Mortgage Corporation and National City Mortgage Company on behalf of all persons who paid document preparation, documentation or document processing fees, processing fees, administrative fees, underwriting fees or wire fees to either or both of the companies in connection with the origination of a residential mortgage in California between May 3, 1996, and April 21, 2003. A statewide class action has been filed in Oklahoma Against Viking Collection Service, Inc. The action is brought on behalf of all Oklahoma consumers who were contacted by Viking regarding an alleged debt and who were subject to allegedly abusive and unfair collection attempts. The action is brought under the federal Fair Debt Collection Practices Act and seeks compensatory, statutory and punitive damages as well as injunctive and declaratory relief. A national class action has been filed against New York City's Interfaith Medical Center on behalf of all consumers who have received, since November 6, 2002, a collection letter from either South Side Collection, Inc. or National Revenue, Ltd in an attempt to collect a debt for Interfaith. The consumers allege that these letters are actually generated by Interfaith itself and therefore violate the federal Fair Debt Collection Practices Act. Consumers are seeking actual damages, statutory damages, and injunctive and declaratory relief.
A class action has been filed against Fountainhead Title Group Corporation and numerous affiliated businesses and mortgage companies on behalf of all Maryland borrowers who entered into mortgage loan transactions using the services of Fountainhead Title where the HUD-1 Settlement Statement, or other document in the loan file, includes a charge for or payment to an Affiliated Business Arrangement for title or closing services. The action alleges that the affiliated businesses are actually shams that allow the title company and mortgage companies to charge borrowers false fees, in violation of the federal Real Estate Settlement Procedures Act and the Maryland Consumer Protection Act.
Financial-services firm Edward Jones has signed a tentative agreement to settle nine class action suits in connection with the firm's mutual fund revenue sharing practices.
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