Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Wednesday, October 24, 2012
FDCPA Lawsuit: Bill Collector Snatched Permanently Injured Vet's Exempt Disability Payments, Refused To Give It Back, Saying "You Should Have Died!"
In Phoenix, Arizona, Courthouse News Service reports:
After garnishing exempt disability payments from a 100% disabled Army veteran's wife, a debt collector told the vet he was "living off social security while the rest of us honest Americans work our a-- off. Too bad; you should have died," the veteran claims in court.
Michael Collier and his wife, Kim, sued Gurstel Chargo, P.A., a Minnesota-based third-party debt collector, in Federal Court. Collier suffered spine and head injuries in the Army and was declared 100 percent disabled. He and his wife, a college student, receive disability payments, which are exempt from execution, according to his complaint.
Nonetheless, Gurstel garnished Kim's savings account, and the credit union froze her money, to seek $6,000 from Michael's defaulted student loan. The Colliers say they "immediately filed an objection and request for hearing."
At the hearing, Gurstel's attorney told the court that the frozen funds were indeed exempt, and promised the court that the money would be released "Right away," according to the complaint.
"The court then issued its ruling finding that the garnished funds were exempt from execution, and entered an order quashing garnishment on the credit union effective that day, May 24, 2012," the complaint states.
But in the parking lot, the Gurstel attorney told Michael Collier "he would need to get a lawyer in order to get his money back."
Collier says he called Gurstel's office, and an unidentified paralegal told him he would have to sue to get the money. When he said the money was exempt veteran disability payments, "the assistant told Michael, 'F--- you! Pay us your money! You can't afford an attorney. You owe us. I hope your wife divorces your a--. If you would have served our country better you would not be a disabled veteran living off social security while the rest of us honest Americans work our a-- off. Too bad; you should have died.'" (Spelling as in complaint.)
The Colliers seek actual damages, statutory damages, and punitive damages for violations of the Fair Debt Collection Practices Act, conversion, privacy invasion, and malicious infliction of emotional distress. They are represented by Floyd Bybee of Chandler.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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