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Discharge Injunction Not Violated When Creditor Did Not Receive Notice at Proper Address

Morris v. State Employees Credit Union, 615 B.R. 189 (Bankr. D.Md. 2020)(Alquist, J.) Plaintiff/Debtor had a credit card through SECU, which was identified and listed as an unsecured creditor on the creditor mailing matrix.  The Debtor used an address for SECU identified on her credit report. In reality, SECU neither owns the address listed on the Plaintiff’s credit repot nor has a branch there. In the months leading up to the bankruptcy filing, SECU had sent credit card statements to the Debtor which identified the proper correspondence address for SECU.  All of the mail from the Court to SECU was

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Creditor Who Refuses to Repay Overpayment from Trustee Violates Code

In re Alston, __ B.R. __, 2019 WL 7580136 (Bankr. D.S.C. 2019) Debtor’s Ch. 13 Plan paid Santander Consumer USA, Inc.’s, claim in full through the Ch. 13 plan. The Ch. 13 Trustee overpaid Santander by $1,815.61. Santander refused to return the overpayment. The Debtor’s counsel sought a refund of the overpayment as well as an award of attorney’s fees and sanctions against Santander.  The Court held that Santander willfully violated the terms of the debtors’ confirmed plan and as a remedy, it directed Santander to refund the overpayment and awarded reasonable attorney’s fees and costs in the amount of

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The Standard for Sanctions for Violating Discharge

Taggart v. Lorenzen, 139 S. Ct. 1795 (2019): The Supreme Court was asked to decide the standard applied to determine whether or not a Court may impose sanctions for conduct that violates the discharge injunction. The Supreme Court rejected both a subjective standard (preferred by the creditor) and strict liability (preferred by the debtor). The Court instead held that sanctions are appropriate “where there is not a ‘fair ground of doubt’ as to whether the creditor’s conduct might be lawful under the discharge order.” Are you experiencing debt collection abuse from your creditor? Enlist the help of an experienced debt collection

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Discharge Denied When Debtor’s Case Fails the Smell Test

In re Wilson, 2016 Bankr. Lexis 995 (Bankr. D. Md. March 30, 2016) Robert Horace Wilson (“Debtor”), a practicing orthopedic surgeon, filed a Chapter 7 bankruptcy case to stay the collection efforts of his largest creditor (“Creditor”). Debtor’s nonfiling spouse (“Spouse”) also was a physician. In his original Schedules, Debtor disclosed monthly income of nearly $18,000, and ownership interests inmedical practice, and an entity called Spike Club, LLC (“Spike”), which owned a gentlemen’s club. Those Schedules, which by Debtor’s admission were incomplete and inaccurate, also disclosed only minimal bona fide claims against him apart from Creditor’s claim and dramatically understated

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Report Must Contain an Inaccuracy to Be Actionable Against Credit Bureaus

D. Maryland; 4/27/2017; Case No. TDC-14-1180 Ms. Alston filed a case against two credit bureaus for violations of 15 U.S.C. § 1681e and 1681i: failure to maintain procedures to assure maximum possible accuracy and failure to conduct a reinvestigation into dispute information, respectively. Unfortunately, this is one of many cases litigated by Ms. Alston involving the reporting of her Wells Fargo mortgage. In a prior case against Wells Fargo, the Court decided that Wells Fargo’s reporting of her account as delinquent was accurate. This is because the evidence established that Wells Fargo was entitled to collect payments from her during

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Failure to Mark Tradeline “Disputed” is a Violation of the FCRA

Hrebal v. Nationstar Mortgage LLC Case No. 17-cv-1815; D. Minn., June 14, 2019 The U.S. District Court granted summary judgment for the Plaintiff on a motion for reconsideration on the ground that the mortgage company negligently violated the Fair Credit Reporting Act when it repeatedly failed to report the consumer’s account as “disputed” in responses to the at-issue ACDV’s. The Court determined that there are no material factual disputes for a jury to resolve with respect to liability: the FCRA imposes liability on “furnishers” of consumer credit information, like Mr. Cooper, who fails to report that loan delinquency is “disputed.”

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