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DEFAULT JUDGMENT AGAINST ASSISTED CREDIT SERVICES, INC. FOR $30,784.65 FOR MALICIOUS CREDIT REPORTING VIOLATION AND ATTEMPTING TO COLLECT A PAID DEBT

  • Jared Hartman, Esq.
  • Posted on July 20, 2016

 

Default Judgment against Assisted Credit Services, Inc. for $30,784.65 for Malicious Credit Reporting Violation and Attempting to Collect a Paid Debt amount, even though the client’s insurance company had already paid more than half of the full debt and the client owed much less than what Assisted Credit was attempting to collect. Luckily, the client was smart enough to raise some red flags instead of just being tricked into blindly paying the full amount. Because the client did not trust Assisted Credit to be honest and ethical, she then paid the balance that she did owe directly to the medical provider. Assisted Credit then got upset and argued with her for depriving them of the ability to keep a portion for their collection “services” for not paying the debt through them.

Thereafter, Assisted Credit furnished an update to the client’s credit report with the false information that she still owed a balance on the alleged debt, even despite their irrefutable knowledge that the client had already paid the balance on the debt directly to the medical provider. Therefore, it was believed that Assisted Credit submitted the derogatory credit reporting information maliciously with the intention of causing damage to the client’s credit score because she paid the balance to the medical provider directly.

After being served with the lawsuit, Assisted Credit hired an attorney, but then for whatever reason fired that attorney and failed to participate in the lawsuit. Because a company or other organization cannot represent itself in court and must appear through an attorney (Rowland v. Cal. Men’s Colony, Unit II Men’s Advisory Council, 506 U.S. 194, 201–02 (1993), the Court graciously gave a deadline to Assisted Credit to retain a new attorney or face default judgment. When Assisted Credit failed to comply, the Court entered default of Assisted Credit. Recently, on July 19, 2016, the Court entered judgment in favor of Plaintiff in the amount of $30,784.65 for the violations alleged.

The Court acknowledge that “Actual damages for credit reporting violations under either statute can include emotional distress and humiliation. See Guimond v. Trans Union Credit Info. Co., 45 F.3d 1329, 1332–33 (9th Cir. 1995) (holding that “emotional distress, manifested by sleeplessness, nervousness, frustration, and mental anguish resulting from the incorrect information in her credit report” can be properly compensated). The Court agreed that the requested damages were appropriate for this client, because she “suffered frustration, anxiety, lack of focus on her livelihood, and feelings of hopelessness” and because her “consumer credit score took a hit after Assisted Credit reported the already-paid debt—a hit that Plaintiff acutely felt, as she had worked hard to rebuild her credit after a prior bankruptcy.” Further, the Court agreed that the credit reporting violations were willful: “evidence of Assisted Credit’s willful conduct in reporting a $120 debt when Assisted Credit affirmatively knew that the debt had been paid warrants punitive damages.” The Court’s well-reasoned and articulate ruling can be read by simply clicking HERE.

This represents a nice opinion confirming that the law and the Courts will protect consumers being harassed by malicious debt collectors who flagrantly violate the law. If you or a loved one are being harassed, lied to, treated unfairly, or notice inaccurate information on your credit report, you should not feel alone and helpless. The law firm of Semnar & Hartman, LLP are experienced in protecting consumers and individuals in these situations. Consultations are always free and confidential, and can be done over the phone to reduce the burden on the client who may just need some questions answered. Do not hesitate to call and discuss your rights!

Related Tags: default judgment, federal rule of civil procedure 55, frcp 55, credit reporting violations, california credit reporting, 1785.25, inaccurate credit report, credit report attorney, FDCPA, fair debt collection practices, debt harassment, debt collection harassment, California debt harassment attorney, San Diego debt harassment attorney, Riverside debt harassment attorney, Orange county debt harassment attorney, consumer rights, consumer protection, consumer attorney
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TCPA VIOLATIONS RESULTS IN DEFAULT JUDGEMENT AGAINST BANK OF AMERICA IN EXCESS OF $1 MILLION

  • Jared Hartman, Esq.
  • Posted on December 14, 2014

 

It is very common in the credit industry for collectors and creditors to use robo-calls to both cell phones and land-lines for purposes of debt collection. Robo-calls are when a computer dials a number stored within its system and when the recipient of the call answers the phone they are confronted with a robotic or pre-recorded voice message instead of a live human.

The reason for these calls being so common in the collection industry is because it is much cheaper for a company to use a machine to blast consumers with repeated calls than it is for the company to pay an employee to sit at a phone and manually dial numbers multiple times per day. However, if a consumer tells a creditor/collector to stop calling them, then every subsequent robo-dial is a violation of the Telephone Consumer Protection Act (TCPA) worth $500.00-$1,500.00 per call. One couple in Tampa, Florida recently obtained default judgment against Bank of America for receiving over 700 unwanted robo-dials in a five year period. Because Bank of America failed to respond to the lawsuit in time, the couple was awarded damages in excess of $1 Million by default judgment. Of course, Bank of America will now appeal the lawsuit, and it is unclear as to how the court of appeal will handle their request to set aside the default judgment. However, the point is clear—companies should respect and honor consumers’ requests that the unwanted and harassing robo-dials cease!

A news article by “Good Morning America” describing the lawsuit as well as other debt collection harassment violations by Bank of America can be found here: https://gma.yahoo.com/couple-wins-1m-suit-against-major-bank-outrageous-002552031–abc-news-topstories.html. Additionally, a news article by “The Consumerist” about the lawsuit can be found here: http://consumerist.com/2014/12/11/bank-of-america-must-pay-family-1-million-for-5-years-of-unwanted-robocalls/ , which also has links to the court papers pertaining to the lawsuit.

If you or a loved one is receiving harassing phone calls by a creditor, debt collector, or telemarketer despite your requests that they stop calling, do not hesitate to contact us for a free and confidential consultation to discuss your rights and what you can do to make them stop.

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SPAM TEXT MESSAGE VIOLATIONS RESULT IN JUDGEMENT OF $250,500.00 AGAINST CALI GROWN COLLECTIVE

  • Jared Hartman, Esq.
  • Posted on November 21, 2014

 

On November 17, 2014, Judge Staton of the Central District of California awarded the Plaintiff Judgment in the amount of $250,500.00 as a result of the Plaintiff receiving several hundred spam text messages in violation of the Telephone Consumer Protection Act (TCPA), codified at 47 U.S.C. 227(b).

The lawsuit was filed as a joint effort between the following law offices Hartman Law Office, Inc., Semnar Law Firm, Inc., Kazerouni Law Group, APC, and Hyde & Swigart. The Complaint alleged that the Defendant—Cali Grown Collective—began sending spam text messages to the Plaintiff in late 2013 soliciting his business for their medical marijuana collective, and each text message offered discounted rates on various strands of medical marijuana. Unfortunately, however, these spam messages were sent without the Plaintiff’s consent or authorization, and despite the fact that the Plaintiff had never once entered into any business transaction with Cali Grown Collective and never had any affiliation with them in any manner whatsoever.

After being properly served with the lawsuit, Cali Grown Collective failed to appear in the case. When a defendant fails to appear in a case after being properly served, the party who served them can pursue default judgment under Federal Rule of Civil Procedure (FRCP) 55. A default judgment under Federal law means the allegations pleaded in the complaint are deemed true, which then allows the Federal court to enter judgment against the defaulting defendant and also issue monetary relief for their legal violations. A copy of Judge Staton’s Opinion entering Default Judgment against Cali Grown Collective can be found here.Order Granting Default Judgement

Because the TCPA provides monetary damages based on the number of violations–$500.00 per violation at a minimum—and because in this case Cali Grown Collective committed several hundred violations despite the Plaintiff’s numerous attempts to make the messages stop, Judge Staton issued Judgment in Plaintiff’s favor for $250,000.00. A copy of the Judgment can be found here. Conformed Judgement

If you or anyone you know is receiving spam text messages as a marketing tactic without your consent or authorization, then you have rights that should be asserted against the company. The TCPA is primarily interested in protecting consumers’ rights to privacy and their right to let companies know how they can contact the consumer. If your rights are being violated, then you can assert those rights in a formal setting to seek compensation. Call us for a free and confidential consultation for more information.