Debt Collector Lawsuits
By Bankruptcy Attorney on Apr 17, 2007 in Credit Reports, Debt Collector Abuses, Lawyer to Lawyer, Marriage and Debt, Missouri, Personal Finance
You are an attorney. Someone comes to you who got papers handed to him/her by the sheriff’s deputy and you see that he/she is being taken to court by Unifund, LVNV, Erin Capital, Calvary Portfolio, or any of a dozen others. Welcome to the world of nationwide debt collectors of old credit card debt.
Many of these Petitions contain multiple, alternate causes of action; breach of contract, suit on account, and quantum meruit. In Missouri, you should be able to beat all three.
First, fundamentally, if they cannot produce a signed contract, how can they plead and prove breach? The business model for these operations precludes the ability to transfer actual paperwork upon assignment or sale of the debt. Also, most credit card companies freely admit that they destroy signed membership agreements within the first couple of years.
Second, suit on account is grossly abused in this context. A suit on account is an action at law to recover money for property sold and delivered or services performed. Plaintiff has the burden of proof to make a submissible case and must present more than mere conjecture to meet this burden. Plaintiff must establish: (1) an offer, (2) an acceptance, (3) consideration between the parties, (4) the reasonableness of the charges, and (5) the correctness of the account. There is no way that a debt collector can show the reasonableness and correctness of purchases on a charge account.
Last there is the equitable cause of action called quantum meruit, which is based on an implied agreement. This is a different claim than unjust enrichment. Recovery under quantum meruit is limited to only when there is no express contract. Once again, even if the debt collector can get to damages, he still needs to demonstrate reasonableness and correctness of charges on the account.
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Barbara Ann Jackson | Mar 17, 2008 | Reply
re: Debt Collectors’ Fraudulent Judicial Foreclosure Filings; ‘Rogue debt collectors’ by Jen Haley -CNN; and Shortcomings of IRS’s debt collection program
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Far too often, bottom lines in debt collection results in: Unjust enrichment and windfalls for debt collectors; abusive, illegal oppression, and harassment toward people owing debts; and no significant revenue for the agencies which hire those collectors. (Disturbingly, as it pertains to cities under jurisdiction of the Federal Fifth Circuit, debt collection fraud and abuse is rewarded!) Furthermore, foreclosure fraud by debt collectors is a primary culprit of this Nation’s mortgage and real estate crisis.
A rational look at overall results from use of debt collectors shows that neither agencies which hire them, nor the people from whom debts are collected are better off. As proven from the Tax Payer Advocate analysis presented to the IRS, only $31 million in revenue of IRS’s $185 million projection has been realized.- “IRS Tax Advocate Renews Criticism of Private Collectors”
http://money.cnn.com/news/newsfeeds/articles/djf500/200803131508DOWJONESDJONLINE000968_FORTUNE5.htm
DEBT COLLECTION fraud facilitates fraudulent real estate flipping. And real estate foreclosures are bonanzas of deceptive lending because flipping enables misleading INVESTORS concerning housing market profits. In fact, because of FRAUDULENT FORECLOSURE PROCEEDINGS, scores of people HAVE NOT LAWFULLY lost ownership of their properties, and legally are STILL THE OWNERS, but they do not know it. Even worse, some homeowners are being sued under “DEFICIENCY” judgments although the foreclosure itself is null.
Because WELLS FARGO and FREDDIE MAC greatly benefit from fraudulent foreclosures in States like Louisiana, ANY representation about $$$ billion dollar losses due to people defaulting on mortgages should be weighed against needless payments of legal fees to law firms which
outmaneuver -and even persecute people who file court proceedings in opposition to fraudulent foreclosures and repossessions. No results came from constituents’ reports and allegations to our local members of the U.S. Congress about Wells Fargo and Freddie Mac. However, even
Rep. Richard Baker, R-La., spoke years ago of Freddie Mac’s activities as “entering ENRON territory” for which there was reason to “be gravely concerned.” See:
http://www.cbsnews.com/stories/2003/06/09/national/main557688.shtml
Despite the many probes into factors of the mortgage crisis, there has been almost no investigation of the most lethal mortgage mess component: DEBT COLLECTION ABUSE and JUDICIAL COLLUSION. The Feds need to seek the whereabouts of perhaps billions of dollars and massive amounts of real estate that winds up in the collector attorneys’ possession -as well as examine the scores of attorney bankruptcy court frauds.
Those debt Collector Attorneys deliberately file foreclosures naming defunct mortgage companies, or companies which no longer hold the notes; or affix collectors’ fees exceeding “Acceleration Clauses.” If homeowners sue for “Unfair Debt Collection Practices,” collectors make more $$ through protracted litigations. Additionally, some collectors file in Bankruptcy Court falsified motions to “Lift Stay” pleadings for purposes of accomplishing SIMULATED AUCTIONS of real estate properties.
For a purported debt of $86,000.00, through use of a non-existent mortgage company, attorneys racked up more than a quarter of a million dollars in litigation fees. Later, the property was sold to a 3rd party for $37,000.00. Investors got nothing, nothing practical was accomplished by evicting the homeowners, and neighborhood property values declined.
Also, as an added measure to heighten chances of judicial favor, collector attorneys propagate that defaulted property owners are costing their clients a lot of money, while the true culprit is collectors’ fraud and racketeering. Exploiting distressed property owners for purposes of making money from their predicaments and then lying on them to the courts has to be the cruelest exploitation and
maligning against people faced with becoming homeless!
In August 2005,Freddie Mac evicted Louisiana property owners because Freddie Mac falsely claims to have purchased their property in year 2005, from a mortgage company which has been defunct since year 2002. **See Proof at:
http://www.lawgrace.org/2008/01/05/united-states-chief-justice-robert%e2%80%99s-aim-to-raise-to-raise-federal-judges-pay-is-revolting-new-orleans-federal-judiciary-call-to-impeach-judge-g-thomas-porteous/ *Also posted at lawgrace.org is the “successor in interest” Affidavit for that DEFUNCT mortgage company.
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Here’s a few more links:
-“Rogue debt collectors — how to fight them” by Jen Haley -CNN
http://www.cnn.com/2008/LIVING/personal/02/29/rogue.debt.collectors/
-Mortgage Mess, Foreclosure Fraud and Impediments to Justice
http://newsblaze.com/story/20071203130614tsop.nb/newsblaze/TOPSTORY/Top-Stories.
-ILLEGAL REAL ESTATE FLIPPING…
http://www.lawgrace.org/2007/06/21/illegal-real-estate-flipping-unfair-enrichment-etc/
-Comment on the Foreclosure of Judge Reginald Badeaux’s Home
http://www.lawgrace.org/2007/12/08/my-december-7-2007-comment-posted-to-the-times-picayune-blog-about-the-news-article-entitled-%e2%80%9cjudge-gets-debt-reprieve-badeaux-has-skipped-mortgage-payments%e2%80%9d-the-foreclosure-of-this-lo/
-Federal Judges’ Pay Raise; New Orleans Federal Judiciary Call To Impeach
http://newsblaze.com/story/20080101084831tsop.nb/newsblaze/TOPSTORY/Top-Stories.html
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Barbara Ann Jackson
Law & Grace, Inc