Daily Archives: October 15, 2012

Debt Collector Illegally Seizes Disabled Vet’s Savings, Tells Him ‘You Should Have Died’

Introducing another debt collection agency in the world.

Gawker:

Michael Collier was declared 100% disabled after suffering spine and head injuries during his time in the Army. His disability entitled him to Social Security payments exempt from debt garnishment.

But that didn’t stop Gurstel Chargo from seizing funds from the savings account of Kim Collier, Michael’s wife, to pay off a $6,000 defaulted student loan.

At a court hearing back in May, a judge ordered Kim’s credit union to unfreeze her assets effective immediately after definitively declaring that her account was exempt from garnishment. But a Gurstel attorney allegedly told Collier afterwards that he would need to sue the collection agency “to get his money back.”

Trying to sort the matter over the phone instead, Collier claims he was treated to a barrage of obscenities and insults from an unidentified paralegal.

According to court documents, “the assistant told Michael, ‘Fuck you! Pay us your money! You can’t afford an attorney. You owe us. I hope your wife divorces your ass. 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 ass off. Too bad; you should have died.”

A lawsuit subsequently filed by the Colliers demands a variety of damages from Gurstel for violating the Fair Debt Collection Practices Act, which very clearly prohibits the employment of harassment or abuse in the collection of a debt.

JEFF THIGPEN | GUILFORD COUNTY LAWSUIT AGAINST LENDER PROCESSING SERVICES (LPS) ON ROBOSIGNING GOES TO NC BUSINESS COURT TOMORROW

October 15, 2012

For Immediate Release:

GUILFORD COUNTY, ex rel. JEFF L. THIGPEN, GUILFORD COUNTY REGISTER OF DEEDS vs. LPS, et al. motions to dismiss complaint will be heard in NC Business Court, Tuesday, October 16th in Raleigh, NC.

Guilford County, ex rel. Jeff L. Thigpen, Guilford County Register of Deeds vs. LPS, et. al motions to dismiss complaint will be heard in NC Business Court, Tuesday, October 16th in Raleigh NC at 225 Hillsborough Street Suite 303.

The suit was filed by County Attorney Mark Payne and Deputy Attorney Matt Turcola on behalf of Guilford County, ex rel. Jeff L. Thigpen, in March 2012 against LPS/DocX, MERSCORP, MERS, Inc., and numerous banks, loan servicers, and foreclosure specialists. The County is seeking that the defendants clean up the “mess” they created in the County’s property records registry.

Guilford County is located in central North Carolina. Its population is approximately 500,000. Greensboro is the largest city within Guilford County. Guilford County was established in 1771, the same year it began its Registry of Deeds.

To assist with the suit, Guilford County retained Talcott Franklin P.C., the nation’s preeminent securitization litigation law firm.

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Copy of the files below…

ACLU sues Morgan Stanley, alleges discriminatory securitization practices

The American Civil Liberties Union filed a class-action lawsuit on behalf of Detroit area homeowners alleging that investment bankMorgan Stanley ($17.71 0.4%) violated discriminatory lending laws by encouraging lender New Century Financial to write, high-risk toxic mortgages in predominantly African-American neighborhoods.

These mortgages were allegedly originated to wrap into private-label securitizations.

The plaintiffs say the case is the first brought by homeowners against investment banks for their alleged role in the securitization of high-risk mortgages that impacted minority neighborhoods in Detroit.

In its suit, the ACLU claims Morgan Stanley securitized the loans to turn profits on mortgages that were packaged and sold off to investors, with little regard to the risk.

Mary Claire Delaney, executive director for Morgan Stanley, told HousingWire, “We believe these allegations are completely without merit and plan to defend ourselves vigorously.”

Read on.

Homeowners sue big banks for role in LIBOR scandal

A consortium of homeowners filed suit against Bank of America($9.44 0.32%)BarclaysJPMorgan ($42.38 0.76%) and several other international banks this week, claiming the financial firms manipulated LIBOR rates that determine the interest rates homeowners pay on adjustable-rate mortgages.

The suit goes back to the scandal involving the London Interbank Offered Rate that generally serves as the benchmark for where rates sit on mortgages, credit cards, student loans and other loan products.

The homeowners who filed on behalf of similarly situated plaintiffs, claim that from 2000 through 2009, the banks helped seasonally manipulate LIBOR rates to force the payments on ARMs higher for homeowners impacted by interest-rate changes.

The case, which was filed in the U.S. District Court for the Southern District of New York, accuses the banks of fixing the LIBOR rates for financial gain in their respective roles as the key providers of the data.

The homeowners are suing the banks under the Sherman Act, a massive piece of financial legislation, and for allegedly violating the Racketeer Influence Corrupt Organization Act. The plaintiffs also say they want to prevent the banks from maintaining any type of monopoly situation where they can use price-fixing and other forms of collusion to make homeowners and those impacted by the rates pay more than necessary.

Read on.

Here is the court document.

On a side note:

Those wishing to enjoining the class action lawsuit are urged to write to the Plaintiff’s attorney:

John Walter Sharbrough
John W. Sharbrough, III, PC
114 Eaton Square
Mobile, AL 36608
(251) 432-1441
Fax: (251) 432-5297
Email: john@sharbroughlaw.com