Collection Abuse


“Asset Recovery Associates” sued for FDCPA and Fair Credit Violations

Financial Credit Service, Inc., also known as “Asset Recovery Associates, Inc.” has been sued in Alabama for violating the Fair Debt Collection Practices Act and Fair Credit Reporting Act. Our client is a recently retired docks worker.  He has good credit, good income, and has made it a practice of […]


How to Vacate a Default Judgment – Alabama Consumer Defense Attorney Judson E. Crump

Once a judgment is entered against you, the law presumes that it is valid, and there are only a few ways to undo the judgment.  Here’s how. First, know that judgments are always presumed valid once entered, and the law generally favors finality of judgments.  This means that if you […]


A New Scam: “Debt Validation Services!” – Alabama Consumer Rights Attorney Judson E. Crump 1

There’s a new scam in town!  It’s called “Debt Validation.” While the life of a consumer protection lawyer can be riveting, it isn’t every day that you see the birth of an entirely new scion of the American scam industry.  Well, today was my lucky day.  I got a call from […]


Reversing a $7,000 Bank Account Garnishment – Alabama Consumer Rights Lawyer Judson E. Crump

Midland Funding Garnished Over $7,000 from my Client’s Checking Account.  Here is how we fixed it. Mr. Carter had a few unpaid accounts he wanted help resolving, so he went to a local credit repair organization.  They attempted to negotiate with some of his creditors on his behalf, including Midland Funding, who […]


Can the Repo Man Do That? The Law on Repossessions. – Alabama Consumer Protection Attorney Judson E. Crump 49

About a million cars are repossessed each year in the United States.  Many of these are illegal, though most debtors (and a lot of repo agencies) don’t know it.  So just what makes a repossession illegal? Breach of the Peace. A secured creditor can only repossess their collateral if they […]


Harassing Communications in Alabama – Consumer Protection Attorney Judson E. Crump

So you’re getting phone calls that are bogus and offensive.  Are they legally “Harassing Communications?” Like many states, Alabama has a criminal statute that bans certain types of harassing communications.  The statute says this: Ala. Code Sec. 13A-11-8(b) A person commits the crime of harassing communications if, with intent to […]


What Makes a Debt Collection Call Illegal? – Alabama Consumer Credit Attorney Judson E. Crump 1

Are You Getting Harassing Telephone Calls From Debt Collectors?  They Might Be Illegal! Sure, a bona fide creditor has a right to ask you for payment, but when do good faith collection efforts end and illegal harassment begin? There are basically two ways that a phone call can be illegal: The […]


Who is Convergence Receivables? – Alabama Consumer Credit Lawyer Judson E. Crump 1

Have you received a lawsuit summons from Convergence Receivables, LC?  Who are they?  What do they want?

 

Hey folks.  I am Judson Crump, an Alabama consumer protection lawyer.  One of my specialties is defending people who have been sued by companies they’ve never heard of.  One such company is Convergence Receivables, LC.

Convergence Receivables, LC is a debt buyer.  This means that they purchase old charged off accounts from banks, credit card companies, auto finance companies, or other creditors, and then try to collect them.  Sometimes, you may never get a phone call, letter, or any contact whatsoever from a debt buyer, then WHAM!  You get a lawsuit demanding thousands of dollars.

To make things worse, a lot of times, debt buyer lawsuits don’t even bother to explain why they think you owe them so much money.  They just hope that you don’t answer the complaint and they can get a default judgment and try to garnish your wages or bank account.  Or scare you into paying them.

The most important thing to remember about debt buyer lawsuits is that even if you really did owe money to someone in the past, that doesn’t automatically mean that any collector who comes along can get it from you.  Here’s why:

Imagine if you borrowed $100 from your friend, Will.  You admit that you owe Will $100, but you can’t pay him right now because work is slow and you have 3 kids.

One day, as you are walking into work, a guy named Bubba comes up to you and says “Give me $100.”  What would you say?

“Hell no, I’m not giving you $100.”

“You owe Will $100 and I paid Will $5 for your debt.  So give me $100.”

“I want some proof.”

Well, that’s the problem.  Anyone claiming to sue on behalf of another must prove not just that the money was owed, but that they have the right to the money.

So if you get sued by Convergence Receivables, LC, or some other debt buyer, you don’t have to file bankruptcy, and you may have a good chance at beating them in court and saving thousands.

The key is to call a lawyer with experience fighting these sorts of cases.  I’ve beaten dozens of collection lawsuits.

If you live in Alabama and are facing a lawsuit or abusive collection tactics by Convergence Receivables, then call me at 251.272.9148.


Credit Acceptance Judgment Vacated for Fraud upon the Court – Alabama Consumer Finance Attorney Judson E. Crump 41

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.