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Welk Resort Knowingly Damaging Its Customers’ Credit Reports

A lawsuit filed on August 5, 2019 alleges that Welk Resort Group has still been damaging its customers’ credit reports with knowingly false information.  A copy of the Complaint can be read by clicking here.

In essence, the lawsuit alleges that, after the customer fell behind on his payments, Welk delivered to him a letter that offered to retake the property in exchange for Welk waiving any and all rights to pursue him for any deficiency on what he may owe on the account and also in exchange for Welk considering the account as “fully satisfied”.

The offered conveyed by Welk in writing offered for the customer to simply allow Welk to retake the property within 20 days in order to accept the offer.  Despite the customer doing exactly what was required of him to accept the offer, Welk proceeded to furnish knowingly false information to the credit reporting agencies that he still owed a significant balance.

However, the terms of the offer drafted by Welk should have resulted in Welk reporting that the account was closed and that the customer owed a $0.00 balance on the account.

When the customer discovered that this false reporting of an outstanding balance was causing him harm in his attempts to apply for a new mortgage, he attempted to obtain Welk’s agreement to fix the problem informally.  In response, Welk attempted to bilk him out of more than $13,000.00 by conveying to him a settlement agreement that, if signed, would have required the customer to pay that sum of money to Welk in a new contract.

However, the undeniable fact that Welk had already waived any such money and released him from any obligation to owe any such money meant the customer did not owe this money and it therefore amounted to Welk attempting to collect an unlawful amount of money from him that he did not owe!

If you or a loved one has faced similar problems with Welk, please do not hesitate to contact us for a free and confidential consultation to discuss your rights!

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Inaccurate Credit Reporting By Welk Resort After Releasing Property Back To Welk?

  • Jared Hartman, Esq.
  • Posted on October 5, 2017

 

We have recently initiated litigation against Welk Resort Groups concerning inaccurate credit reporting, and we are looking for anyone else who may have suffered the same problem so that we can obtain further information for our investigations. If you have suffered the same problem as below, please contact us for a confidential discussion.

We suspect that Welk has a business practice of sending letters to owners in default of their monthly payments to offer that, if the home owner were to agree to release the property back to Welk, then all monies allegedly owed will be deemed as fully satisfied, but thereafter continuing to report to the consumer credit reporting agencies that the home owner still owes a deficiency balance to Welk without any clarification at all that the deficiency had actually been satisfied in full and that no deficiency can be pursued against the owner.

Clearly, such reporting is factually inaccurate based upon the terms of Welk’s own offer. This has caused our client to suffer harm, because she was specifically denied a new home loan with the new potential lender specifically identifying the Welk credit reporting of a deficiency balance as the cause for the denial. A copy of our complaint can be found by clicking HERE.

Therefore, if you have ever returned a property back to Welk after receiving such a letter, we would like to speak to you so that we can discuss your particular circumstances as well and obtain further information for our investigations.

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