Banks


Congress Can’t Do Anything, But They Still Find Time to Protect Big Banks – Alabama Consumer Finance Attorney Judson E. Crump

The U.S. House of Representatives Recently Passed a Bill to Help Large Financial Institutions Get Away with Ripping Off Their Customers. It’s called the “Financial Services and General Government Appropriations Act,” and its current bill number is H.R.5485.  Why does it matter?  A little backstory is needed.  Back in 2009, before people had […]


This Is Why People Think Lawyers are Full of Crap

I love my job.  Sure, I don’t get the huge payouts of the personal injury lawyers, or the television snippets of the criminal defense bar, or the posh offices and guaranteed salary of the corporate lawyers.  But I get something a lot of lawyers don’t: I get to ask for […]


How Long Does It Take to Get Garnished? – Alabama Consumer Rights Firm Judson E. Crump, PC

Ever Wonder What Really Happens After You Can’t Pay Your Bills? If you have not yet had the pleasure of money being forcibly collected from you, then you may wonder just what happens if you don’t pay a debt.  Of course, your creditors are probably going to threaten you with […]


Credit Reports & Mortgage Payments After Bankruptcy – Alabama Consumer Credit Attorney Judson E. Crump

“I filed bankruptcy a few years ago, but I kept my house and have made my mortgage payments.  Why isn’t my good payment history being reported on my credit reports?” A lot of consumers in Alabama have been noticing an unexpected problem with their credit reports after bankruptcy: their mortgage […]


Credit Acceptance Judgment Vacated for Fraud upon the Court – Alabama Consumer Finance Attorney Judson E. Crump 32

Default Judgment Vacated for Fraud & Misrepresentation

 

 

This case was a particularly important one, in my opinion.  I’ve written before about cases where I was able to reverse a default judgment after it had been entered because the Defendant was never served with the complaint.  That is by far the most common way to reverse a default.  But not the only way.

My client bought a car in 2007.  It had a 24% APR and she reliably made her payments for about four years.  Then the car broke down and since it was sold to her “AS IS – No Warranty,” she had to pay for the repairs out of pocket.  The repairs would have cost $4,000.  The car wasn’t even worth that much.  So she gave it back to the finance company – Credit Acceptance Corp.

Three years go by.  She gets sued by Credit Acceptance – they say the balance on the loan is $11,071.61.  She calls the collection lawyer to try and make payment arrangements, but they wouldn’t accept any offer she could afford.

So she didn’t answer within the 30 days allowed by Alabama law.  Credit Acceptance moves for a default judgment.  They knew that they were in the superior position – my client hadn’t defended herself, so they were going to get a judgment without having to really prove their case.  That’s how default judgments work.

But when the judgment was entered, it was not for the $11,071 she’d been sued for, but for over $19,000!  How?  They had asked for interest at 24% APR beginning January 1, 2012.

But the car hadn’t even been sold at a post-repo auction until July 2013!  You can’t calculate a deficiency balance until you have sold the car.  It just isn’t possible.

So how did a judgment get entered that was so obviously wrong?  Because Credit Acceptance had one of their employees file a false affidavit with the court.  Their affidavit stated that the amount owed on New Year’s Day 2012 was $11,071.61, when in fact that was the highest amount the debt could have been in July of 2013!  So that is 19 months of interest (at 24% interest!) that they had no right to claim, yet in a sworn affidavit, they were seeking.  In other words, Credit Acceptance blatantly lied to the court to try to steal over $4,200 from my client.

I filed a motion to set this judgment aside, and it was granted.  Even the collection lawyer, to his credit, realized that something was way off with the affidavit.


The Lone Justice Ruling for the People: Scalia? – Alabama Consumer Credit Attorney Judson E. Crump

Koons Buick Pontiac GMC v. Nigh – 543 U.S. 50 (2004).  Proof that Judges aren’t just partisans. The U.S. Supreme Court now has 5 “Republicans” and 4 “Democrats.”  Since I get my knowledge of the world from the TV Channels or internet news sites that disagree with me the least, […]


A Microcosm of the Congressional Dysfunction Created by Industry Lobbyists – Two Letters to the CFPB 1

Last year, the Consumer Financial Protection Bureau decided to finally get around to regulating sketchy car dealers and other non-bank arrangers of consumer financing. Why?  Because as everyone who deals with auto dealers and their financing partners knows, car dealers very often conceal important facts from the people they deal […]


Alabama Woman Sues Comerica Bank over Direct Express Debit Card Dispute – Alabama Consumer Credit Attorney Judson E Crump 24

Last Thursday, we filed suit against Comerica Bank, issuer of the popular Direct Express Debit MasterCard, alleging that the bank failed to investigate purported errors, despite my client having disputed the errors both orally and in writing.  The allegations are summarized below: The Direct Express card is a debit card […]


I’m looking for people who have experienced problems with their creditors due to a failure of an electronic payment that was not their fault.  If you have an agreement to pay a debt via ACH (automated clearinghouse), debit card, phone check, direct withdrawal, or other electronic means and for some reason (like a computer glitch, malfunction, bank error, or other screwup), the money never went from your bank to the creditor, the creditor is supposed to give you time to try the transfer again or fix the problem before taking action against you.

If an electronic payment method fails, your creditors cannot take action against you until they have requested another payment method in writing.

So for instance, if you have a mortgage payment that comes out of your checking account each month, and one month your bank starts screwing up the payments, then the mortgage company cannot foreclose on you or charge you late fees until they have sent you a written request for another payment method.  Has this happened to you?  Have you been foreclosed on because of an ACH failure that wasn’t your fault?  If so, give me a call and tell me what happened.  I’m very interested in this aspect of the law and want to see if there are violations happening out there.

Or are you paying for a car via debit card each month, and after a bank malfunction, got a car repossessed?

If something like this has happened to you, give me a call at 251.272.9148.  I won’t charge you anything.  I just want to hear your story.