Consumer Lawsuit Alleges Creditor's Agent Violated Federal Debt Collection Law; Says 'Bill Collector Sued Me In The Wrong Court!'

In Marshall, Texas, The Southeast Texas Record reports:

• A Gilmer County consumer has filed a lawsuit against several debt collectors for violating the Fair Debt Collection Practices Act by filing a lawsuit in a distant court.



• Roberta Ford filed suit against Samara Portfolio Management, Law Office of Joseph Onwuteaka P.C. and Joseph Onwuteaka on March 7 in the Eastern District of Texas, Marshall Division.



• At issue is a retail installment contact that Ford signed on Dec. 16, 2003, for the purchase of a 2004 Kia Sorento, which was signed in Gregg County. According to court documents, the defendants filed a lawsuit against Ford in a Justice Court in Houston, Harris County on Jan. 24, 2011. The lawyers are attempting to recover a deficiency judgment of $8,376 and attorney's fees of $1,600. The case is currently pending and has not been set for trial.



• Ford claims that the defendants are in violation of the Fair Debt Collection Practices Act by filing the lawsuit to collect on a consumer debt in a distant forum,(1) the suit states. The plaintiff is asking for an award of statutory damages, attorney's fees, and court costs.



• Ford is represented by Richard Tomlinson of Lone Star Legal Aid in Houston.(2)

Source: Consumer sues debt collectors for filing lawsuit in a distant court.

(1) If the allegations are true, this case appears to be a slam dunk win for the consumer. See §811(a)(2) of the Act (15 USC 1692i(a)(2)):

• (a) Any debt collector who brings any legal action on a debt against any consumer shall—
  
  (2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity—
  
  (A) in which such consumer signed the contract sued upon; or
  (B) in which such consumer resides at the commencement of the action.

Reportedly, the consumer allegedly signed the contract in Gregg County and apparently resided in Gilmer County at the time the debt collector filed its lawsuit - which the debt collector filed in Harris County.

(2) Lone Star Legal Aid is a non-profit service provider of free legal aid having 13 offices throughout east, southeast, and northeast Texas serving 72 Texas counties and four southwest Arkansas counties.

Note that in the event the consumer prevails in this litigation, the consumer's law firm will be entitled to clip the debt collector for legal fees (despite the fact that it's a non-profit law firm providing no-cost/low cost legal services to its clients), as awarded by the court. See §813(a)(3) of the Act (15 USC 1692k(a)(3)):

• (a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of—
  
  (1) [...];
  (2) [...]; and
  (3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court.