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.
Friday, June 03, 2016
Baltimore Jury Slams Notorious Zombie Debt Buyer w/ $38 Million Verdict For Garnishing People By Obtaining Money Judgments From Lawsuits It Had No Right To File
A Baltimore jury hit a Las Vegas debt collector with a $38 million judgment, the largest judgment against a debt collector in Maryland history. The money from the class-action lawsuit will be split among 1,589 people.
"What we asked the jury to do was to not just return the illegal money that was taken, but to also return the profits that were made from that money," said Phillip Robinson, an attorney with the Consumer Law Center LLC. Robinson said debt collection company LVNV Funding LLC re-invested the money collected from Maryland residents.
"The jury did the right thing and found for damages," Robinson said.
Robinson said that in 2013, the Maryland Court of Special Appeals held that a judgment in favor of an unlicensed collection agency was void, but LVNV kept collecting up until last week.
"It filed thousands of lawsuits without the right to do so, and from those lawsuits, it garnished people," Robinson said.
"We had one person testify that he works, makes $8.75 an hour, and he was being garnished for this debt, so his take-home pay every two weeks was reduced by $100, so he had $400 to take home," said Scott Borison, an attorney with the Legg Law Firm LLP.
Borison said jury trials are unusual in class-action lawsuits.
"This was a company who knew they did something wrong, and rather than just own up to it and give the money back voluntarily, they insisted we go to trial," Borison said.
Robinson said people should always seek legal guidance if a debt collector takes them to court.
"Just do not accept the premise that the person suing you has the right to do so. You have rights, and there are resources to help you," Robinson said.
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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