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OCWEN AND IMPAC MORTGAGE MOTION TO DISMISS DENIED

  • Jared Hartman, Esq.
  • Posted on August 24, 2017

 

On August 23, 2017, Judge Miller of the Southern District of California denied a motion to dismiss filed by Ocwen and Impac Mortgage Corp., so that all causes of action remain in litigation. A copy of the court’s ruling can be found by clicking HERE .

In this case, the plaintiffs allege that Ocwen and Impac granted an affordable loan modification, and after the plaintiffs accepted the modification by following all terms required by the defendants they reversed course and refused to honor the agreement while claiming that they had determined the agreement was not affordable for them. The allegations further claim that, after refusing to honor the agreement that the defendants had offered and granted to plaintiffs, they proceeded to reject any and all payments that plaintiffs made in furtherance of the agreement, submitted false credit reporting that claimed the plaintiffs were in default each month in a much higher amount than the modification granted, repeatedly uttered false threats of foreclosure with the apparent intention of scaring the plaintiffs into paying the higher amount and disregarding the affordable modification, and repeatedly claiming to plaintiffs that they were in default in an amount much higher than the affordable modification.

The plaintiffs tried for several years to obtain the defendants’ compliance with the agreement in order to avoid litigation. Defendants then tried to use that against them by seeking dismissal for statute of limitations grounds, among other arguments, but the motion grossly misapplied the law of statute of limitations.

After so many years of being beaten down by the defendants when the plaintiffs were simply trying to do the right thing, the ruling today is a great result that allows them to continue pursuing justice against these companies who apparently are not ashamed of placing their own business profits over the concern and care for their own customers.

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WHAT ARE ATTORNEYS’ FEES AND HOW ARE THEY AWARDED?

  • Jared Hartman, Esq.
  • Posted on January 12, 2016

 

We have talked a lot in other articles about how your attorneys’ fees can be awarded for successful prosecutions of actions under the Federal Fair Debt Collection Practices Act, the Rosenthal Fair Debt Collection Practices Act, the Federal Fair Credit Reporting Act, and the California Consumer Credit Reporting Agencies Act. Sometimes people ask what this means and how are they awarded by the court.

It is not every case that allows for the court to award attorneys’ fees, because typically the court only rules upon a motion for attorneys’ fees after the consumer (our client) wins on the merits. The majority of cases settle for a specific lump sum of money, from which the attorneys will normally take a percentage on a contingency fee basis as their fees. However, if your case goes to trial and you win a verdict in your favor, or if your case is won pre-trial on motion for summary judgment, then the law requires that the creditor or collector who violated your rights to pay your attorneys’ fees by order of the court (unless they decide to settle for a specific amount of fees).

In some cases, and more rarely, the creditor or debt collector against whom the lawsuit was brought might agree to a settlement whereby the consumer (our client) is awarded a specific amount of damages and then our attorneys’ fees and costs are to be decided by the court.

In the attached example that you can read here, the defendants Western Dental Services and their debt collector Herbert P. Sears Company, Inc. did exactly that. They agreed that our client would be awarded a specific, but confidential, sum of money with our attorneys’ fees and costs being decided by motion to the court.

The total amount awarded by the court was $65,277.28 for attorneys’ fees and costs of litigation. This was based on what is called the “lodestar” calculation, which requires the court to simply calculate a reasonable hourly rate by a reasonable number of hours expended by the attorneys in order to come up with the total amount to be awarded.

However, it is often not clear how the attorneys are awarded a certain hourly rate. The lodestar method typically requires the court to look at what is an average hourly rate for other attorneys in the same jurisdiction as the court where the case was filed with similar experience as the attorney whose motion is pending. It is common in the consumer rights area for the courts to rely on the U.S. Consumer Law Attorney Fee Survey Report that is prepared every couple of years in order to document the average salary for consumer attorneys in each region and territory within the United States, mostly based on experience level and years of practice. The 2013-2014 version of this survey was prepared by Ronald L. Burdge, Esq., and can be found on the National Consumer Law Center’s website at https://www.nclc.org/images/pdf/litigation/fee-survey-report-2013-2014.pdf.

The court ruling got to the total amount of $65,277.28 by adding the reasonable costs of litigation to the total hourly amounts awarded to Jared M. Hartman at $349.00 per hour and Babak Semnar at $425.00 per hour in connection with their prosecution of claims under the Federal and Rosenthal FDCPA and California credit reporting act.

If you or a loved one are concerned about whether your rights have been violated by a debt collector, creditor, bank, or credit reporting agency, please do not hesitate to call us for a free and confidential consultation to discuss whether your case might fall within one of the areas of law that allow us to pursue our attorneys’ fees in a similar manner.

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WHY DO WE SUE DEBT COLLECTORS?

  • Jared Hartman, Esq.
  • Posted on December 8, 2013

 

“Your client allowed himself to go into debt in the first place, so it’s his fault for being harassed by debt collectors.” We sometimes hear people make this statement when talking about suing debt collectors. People who have never had to deal with debt collection harassment and who have never had to go through the frustrating and unforgiving process of credit repair sometimes just don’t understand how it feels. The reality is, though, that the debt collection harassment laws were enacted by Congress to promote four guiding principles: 1) Truth, 2) Fairness, 3) Dignity, and 4) Respect.

No-one wants to go into debt. Virtually every debt is incurred because of some form of economic hardship, such as unplanned-for interest fees, company lay-offs, inability to find a job in a tough economy, or even death or serious illness or injury within the family. Hardly anyone actually incurs a debt with the intention of never paying it back. Although debt collectors try to make it look like debtors are low-life people who had malicious intentions upon incurring the debt, this is almost always far from the truth. Everyone deserves to be treated with fairness, dignity, and respect, and deserves to be free from dishonesty and trickery from debt collectors.

When debt collectors show no mercy or forgiveness, and fail to treat people with truth, fairness, dignity, and respect, they are generally violating the many laws that govern how debt collectors can operate their collection activities. Such violations undermine the integrity of our society and our economy, and allowing them to get away with simply shows them that they can continue their harassing conduct towards others.

Before these laws were in place, debt collectors would often go to the extremes of threatening people with violence, falsely threatening that the debtor has committed a crime by failing to pay a debt, falsely threatening lawsuits, publishing in the media lists of “dead-beats” containing names of people who are in debt, and many other extremely disturbing conduct. These extreme violations are rare today, but they still do happen. Do not let them get away with it; YOU DO HAVE RIGHTS!

Contact us TODAY for a free, confidential consultation to discuss what your rights are and to discuss the proper ways to assert your rights.