ConsumersLaw.com

Recent Successful Cases

AUTOMOBILE LEASE DISCLOSURE

Federal appeals court ruled that Nissan Motor Acceptance Corp. violated consumer leasing laws by failing to disclose the anticipated future value of the car at the lease end. This is a key component in computing a consumer’s Early Termination liability.

“SPOT DELIVERY”
Auto Finance Fraud

Federal Court in Philadelphia entered a $69,000 total award against Value KIA, a Philadelphia car dealer, for a bait-and-switch scheme which resulted in a car buyer losing her $8000 down payment on a KIA minivan.

CREDIT PRIVACY

Federal Court in Boston approved $100,000 settlement in a suit against a detective agency for impermissible access, and attempted cover-up, after they obtained a consumer’s credit report.

DEBT COLLECTION ABUSE

• Federal Court in Philadelphia approved a $493,000 class action settlement against one of the nation’s largest collection agencies, Transworld Systems. The suit challenged Transworld’s practice of falsely advising consumers that their failure to pay a debt claimed due, in this case for a medical service, could result in their wages being garnished. Pennsylvania law prohibits wage attachment in all but a very few circumstances.
• Federal Court in Omaha, Nebraska certified as class action, a suit against one of Nebraska’s largest collection agencies General Service Bureau. The suit seeks refunds to thousands of Nebraska consumers who were overcharged by the collector when they settled small claims court suits before.

MORTGAGE ESCROW FUNDS

State Court in Philadelphia approved a class action lawsuit settlement against Sovereign Bankcorp brought on behalf of 80,000 mortgage account holders. The suit alleged Sovereign required customers to make unnecessary payments to their mortgage escrow accounts. Customers received back all overpayments, plus a choice of cash or discount to be used towards a new loan or the refinancing of an existing loan.