Credit Union Lawsuit Loans and Debt Collection Claims – Is a Credit Union Lawsuit Your Answer?

June 15, 2021 by Lewis
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A Lawsuit has been filed in Colorado against a credit union for charging exorbitant fees. According to the Denver Post, three former members of a Colorado credit union were charged exorbitant fees by the credit union for overdraft protection. Upon discovery of the charges, the three former members are suing the credit union for wrongful foreclosure, negligent lending practices and intentional and negligent discrimination.

The suit names as defendants First National Bank of Colorado, its president, and its vice president, D. Gerald Turner, and the credit union’s board of directors, Albert Perricone and Raymond Bouknight. The suit also names as defendant Global Resorts Group Inc.

Credit Union Lawsuit

One of the two plaintiffs, Sonya Carr, is from Denver, where the credit union is located. The other plaintiff, Jason Parks, is from San Antonio. Both plaintiffs had purchased a house through an online mortgage company.

The mortgage company had instructed them to go through an independent loan processor, not the credit union, for approval of their loan. Because the plaintiffs did not know this, and because they were unaware of the fee agreement, neither knew that they were charged a “pre-approved” fee by the credit union.

The suit further states that the defendants knew or should have known that failing to provide the required notice of pre-approval for financing was illegal and would result in civil liability.

The lawsuit further claims that defendants violated the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Fair Debt Collection Practices (FDCPA) through their inaccurate collection of fees and failed timely collections of past due balances. The suit further claims that defendants violated the equal opportunity laws of the U.S. Department of Justice, the District of Columbia’s consumer fraud laws, and the Fair Debt Collections Practices Act.

Other claims are that defendants violated the Fair Credit Billing Act, the Fair Debt Collection Practices Act, the FDCPA, the U.S. Department of Agriculture’s National Credit Act, the U.S. Department of Housing and Urban Development’s Multiple Loan Programs, the U.S. Office of the Comptroller of the Currency, the U.S. Federal Reserve Board’s Regulation D, the Internal Revenue Code, the Fair Access to Clinic Agreements Act, the Medical malpractice Lawsuits, the Mental Health Lawsuits, and the Tort Lawsuit Laws.

There are also claims that defendants failed to provide consumers a reasonable warning about their negative rating prior to their reduction in rating. If you believe you fall within any of these protected classifications, please consult a credit union attorney.

Other state law claims:

In addition to the federal credit union lawsuit claims, the following state law claims have been included: California’s Unfair Debt Collection Practices Act, Colorado’s Fair Debt Collection Practices Act, Maryland’s Fair Debt Collection Practices Act, Montana’s Consumer Loan Broker Protection Act, New York’s Fair Debt Collection Practices Act, Oregon’s Consumer Debt Collection Practices Act, South Carolina’s Fair Debt Collection Practices Act, and Texas’ Telephone Debt Collection Practices Act.

There are additional state law claims to consider if you live in or near one of the states previously mentioned. Be sure to check! However, you should know that even if you do not fall within any state law claims, you still may be able to file a credit union lawsuit on your own.

Credit Union lawsuit loan amounts are based on a number of factors, including (but not limited to) the amount of money invested, the amount of money owed, the amount of time the transaction occurred, the amount of funds withdrawn from the account, and the amount of fees charged for the transaction.

Often, multiple fees are charged on the same transaction, which can make the class action lawsuit process quite lengthy. Furthermore, if the credit union rejects your application, the entire transaction may never go through. Due to these factors, it is highly recommended that you consult a lawyer who is well experienced in credit union issues and who can work with you to resolve your problem quickly.

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