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Credit Lawsuits Fourth-Quarter 2009 Mortgage Litigation Index

Credit Lawsuits
Fourth-Quarter 2009 Mortgage Litigation Index
Litigation based on credit reporting and other credit issues.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to StoryLink to Story
Ace Group, Inc., a Delaware corporation, also d/b/a American Credit Experts, Inc., The Ace Group, Inc., The Ace Group, and Ace, Legal Credit Repair Center, Inc., a Florida Corporation, also d/b/a LCRC, Michael Singer, Melvin Kessler, and Gerald Roth Federal Trade Commission U.S. District Court Southern District of Florida na The FTC complaint alleges that the defendants promised to provide credit repair with results in 60-days for advance fees of around $50 plus $59.95 a month. The defendants are accused of repeatedly sending dispute requests even after the bureaus verified the entries on credit reports were accurate. In July of 2009, a Corrected Stipulated Final Judgment and Order for Permanent Injunction and Other Equitable Relief was entered against the defendants. Federal Trade Commission v. Ace Group, Inc., a Delaware corporation, also d/b/a American Credit Experts, Inc., The Ace Group, Inc., The Ace Group, and Ace, Legal Credit Repair Center, Inc., a Florida Corporation, also d/b/a LCRC, Michael Singer, Melvin Kessler, and Gerald Roth Civil Action No. 0:08-CV-61686-PAS Oct. 20, 2008 www.mortgagedaily.com/CreditRepair102809.asp
Advantage Credit Repair LLC and Mark D. Solomon Federal Trade Commission U.S. District Court for the Northern District of Illinois Eastern Division na The FTC complaint for injunctive and other equitable relief alleges that the defendants advertised that they did not charge large upfront fees for services, though in fact they did require as much as $269 in advance. Defendants also promised a refund after 60 days they obtained no results, though they rarely issued those refunds. Federal Trade Commission v. Advantage Credit Repair LLC and Mark D. Solomon Civil Action No. 1:08-CV-05994 Oct. 20, 2009 www.mortgagedaily.com/CreditRepair102809.asp
Clean Credit Report Services, Inc., Ricardo A. Miranda, Daniel R. Miranda, and Ruthy Villabona Federal Trade Commission U.S. District Court for the Southern District of Florida Miami Division na The FTC complaint for injunctive and other equitable relief alleges that defendants violated the FTC Act, the Credit Repair Organizations Act and state laws by making false and misleading claims and by charging advance fees for credit repair services. Specifically, the defendants are accused of charging $400 dollars in advance fees and completing no work for the customer. Federal Trade Commission v. Clean Credit Report Services, Inc., Ricardo A. Miranda, Daniel R. Miranda, and Ruthy Villabona Civil Action No. 1:08-cv-22922-AJ Oct. 21, 2009 www.mortgagedaily.com/CreditRepair102809.asp
Countrywide Financial Corporation, Bank of America Corporation, Countrywide Bank, FSB, Countrywide Home Loans, Inc. and Full Spectrum Lending Division Edmond Moses, Michelle C. Moses, Laila Elkhettab, Kim Wickman, Thomas A. Munz, Richard Goldman, Scott Gregg and Matthew B. Martin U.S. District Court for the Western District of Kentucky na Class action suit alleges theft of private data of borrowers by a former Countrywide employee, including violations of Fair Credit Reporting Act and identity theft. In re: Countrywide Financial Corp. Customer Data Security Breach Litigation Case No. 3:2008mc01998 Dec. 2, 2008 www.mortgagedaily.com/LitigationGraveyard123009.asp
Latrese & Kevin Enterprises Inc., a Florida Corporation, also doing business as Hargrave & Associates Financial Solutions, Latrese Hargrave, also known as Latrese V. Williams, individually and as an officer of Latrese & Kevin Enterprises, and Kevin Hargrave, Sr., individually and as an officer of Latrese & Kevin Enterprises Inc. Federal Trade Commission U.S. District Court Middle District of Florida Jacksonville Division na The FTC complaint alleges that the defendants charged around $250 per customer to erase bad credit. The firm is also charged with violating the FTC Act by falsely claiming consumers would receive a credit card with a credit line as high as $10,000 after paying an advance fee of as much as $300. Federal Trade Commission v. Latrese & Kevin Enterprises Inc., a Florida Corporation, also doing business as Hargrave & Associates Financial Solutions, Latrese Hargrave, also known as Latrese V. Williams, individually and as an officer of Latrese & Kevin Enterprises, and Kevin Hargrave, Sr., individually and as an officer of Latrese & Kevin Enterprises Inc. Civil Action No. 3:08-CV-1001-J-34JRK Oct. 20, 2008 www.mortgagedaily.com/CreditRepair102809.asp
Nationwide Credit Services, Inc., a Florida corporation and James R. Dooley, individually and as president of Nationwide Credit Services, Inc. Federal Trade Commission U.S. District Court Middle District of Florida na The FTC complaint for injunctive and other equitable relief alleges that the defendants violated the FTC Act, the Credit Repair Organizations Act and state laws by making false and misleading claims and by charging advance fees for credit repair services. Specifically, the defendants are accused of charging advance fees of between $75 and $150 and total fees of between $300 and $1,000 and completing no work for the customers. Federal Trade Commission v. Nationwide Credit Services Inc., and James R. Dooley Civil Action No. 3:08-CV-1000-J-25TEM Dec. 20, 2009 www.mortgagedaily.com/CreditRepair102809.asp
RCA Credit Services, LLC, a Florida corporation, Rick Lee Crosby, Jr., individually, and as an officer or manager of Defendant, and Brady Wellington, individually, and as an officer or manager of Defendant Federal Trade Commission U.S. District Court Middle District of Florida na The FTC complaint alleges that the defendants promised to raise credit scores above 700 in as little as 30 days and remove all negative credit for a cost of between $500 and $3,000 with a portion paid in advance, however, RCA often did not provide these services. The defendants are also accused of violating the Credit Repair Organization Act by failing to provide a written statement of Consumer Credit File Rights Under State and Federal Law before contracts were signed and not conspicuously noting in their contracts that consumers have a three-day right of rescission and for failing to provide a written notice-of-cancellation form. Federal Trade Commission v. RCA Credit Services, LLC, a Florida corporation, Rick Lee Crosby, Jr., individually, and as an officer or manager of Defendant, and Brady Wellington, individually, and as an officer or manager of Defendant Civil Action No. 8:08-CV-2062-T-27MAP Oct. 16, 2009 www.mortgagedaily.com/CreditRepair102809.asp
Successful Credit Service Corporation, a California corporation also d/b/a Success Credit Services and Tracy Ballard aka Tracy Ballard-Straughn, individually and as an officer and/or director of Successful Credit Service Federal Trade Commission U.S. District Court for the Central District of California Western District na The defendants were accused of falsely claiming they had special relationships with creditors, collection companies, credit bureaus, and public record providers. Customers were charged advanced fees of between $3,000 and $4,000. The defendants agreed to an $8.3 million dollar settlement with the FTC. Federal Trade Commission v. Successful Credit Service Corporation, a California corporation also d/b/a Success Credit Services and Tracy Ballard a/k/a Tracy Ballard-Straughn, individually and as an officer and/or director of Successful Credit Service Civil Action No. 2:08-cv-06829-ODW-SH Oct. 16, 2009 www.mortgagedaily.com/CreditRepair102809.asp
United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp., Ahron E. Henoch, individually, and Ezra Rishty, individually, and Jane and John Does 1-10, individually and as owners, officers, directors, shareholders, founders, managers, agents, servants, employees, representatives and/or independent contractors of United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp. and XYZ Corporations 1-10 Ann Milgram, Attorney General of the State of New Jersey, and David M. Szuchman, Director of the New Jersey Division of Consumer Affairs Superior Court of New Jersey, Chancery Division, Monmouth County na The defendants were accused of charging up-front fees but failing to deliver promised services including raising credit scores and removing negative entries. The defendants were ordered to pay $500,000 in civil penalties and $86,918 in reimbursement to the state. Two officers of the companies were ordered to pay $15,022 in restitution to 17 consumers. All of the defendants were banned from credit-related businesses. Ann Milgram, Attorney General of the State of New Jersey, and David M. Szuchman, Director of the New Jersey Division of Consumer Affairs, Plaintiffs v. United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp., Ahron E. Henoch, individually, and Ezra Rishty, individually, and Jane and John Does 1-10, individually and as owners, officers, directors, shareholders, founders, managers, agents, servants, employees, representatives and/or independent contractors of United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp. and XYZ Corporations 1-10, Defendants Docket No. Mon-C-158-08 July 28, 2009 www.mortgagedaily.com/CreditRepair102809.asp

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