Judson E. Crump, PC

Video Q&A: The cleverest corporations that break consumer protection laws: Credit Bureaus – Alabama Credit Attorney Judson E Crump

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Alabama Credit Reporting Attorney Judson E. Crump discusses why he thinks credit bureaus are relatively smart businesses to fight in court.

To summarize:

Though the major consumer reporting agencies* make mistakes all the time, actually taking them to court can be tricky because they are specialized in their field and have experience from decades of business and thousands of lawsuits behind them. They know how to deal with FCRA litigation, have very good professional witnesses, and don’t hire bad law firms.

Proceed cautiously, but don’t be intimidated.

*credit bureaus, credit report companies, credit reporters, these all are defined by 15 U.S.C. 1681 – the Fair Credit Reporting Act – as “consumer reporting agencies,” so that is the term I use for them as well.

Another Midland Funding Lawsuit Dismissed – Alabama Collection Defense Attorney Judson E Crump

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Another collection lawsuit by Midland Funding, another victory for an Alabama consumer.  Back in May, my client received a lawsuit summons from Midland Funding, they claimed that he owed them $3,573 for a credit card account with GE Capital Retail Bank.

Midland Funding agreed to dismiss the case when I challenged their evidence.
Midland Funding agreed to dismiss the case when I challenged their evidence.

My client answered the complaint pro se and hired me to represent him at trial.  I notified the court and the collection attorneys of my appearance a month or so before trial.  At trial, they did not have a witness or the requisite certifications to prove their case, so they agreed to dismiss it on the spot.

Some folks think that you have to have a lawyer to answer the lawsuit.  You don’t.  And if you answered a lawsuit on your own, only to find later that you may be in over your head, it is not too late to hire a lawyer.  I have been hired the day of trial before, though I ask that my clients retain me at least a full week before trial in order to give me time to prepare and to notify the other side of my involvement – something that professional courtesy requires, in my opinion.

Portfolio Recovery Associates Credit Card Lawsuit Defeated – Alabama Collection Defense Lawyer Judson E. Crump

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This was a Mobile County circuit court collection case where Portfolio Recovery Associates sought over $6,000 from my client for an old US Bank credit card. We won on the merits at trial.
This was a Mobile County circuit court collection case where Portfolio Recovery Associates sought over $6,000 from my client for an old US Bank credit card. We won on the merits at trial.

This case represents a trend I’ve noticed among the circuit judges here in Alabama: allowing sketchy debt buyer evidence into the record, but finding in the defendant’s favor anyway.

My client was a good and honest woman who was working hard to claw her way out of debt.  She had recently received a promotion at work that boosted her income just above the threshold for garnishment.  So when she got served with lawsuit papers from Portfolio Recovery Associates, she was very afraid.  Losing 25% of her paycheck to a garnishment would destroy her financially.  They were suing her for $6,100, alleging that she owed that balance from a credit card she had once had with U.S. Bank.

She attempted to conduct some basic discovery on her own, and though it did help her delay the trial of the matter, it did not ultimately help her case.  The collector didn’t back down and insisted on taking her to trial.  Luckily, she hired me in time to analyze her case for all possible defenses.  At trial, I objected to their evidence on several grounds, and while the judge considered it a close decision, he ultimately let the evidence be admitted, but took my objections into consideration as to the weight of the evidence.  What does that mean?  Basically, it means “We agree that the evidence is sketchy, but not so sketchy that we’re going to completely exclude it.  Instead, we’ll take a look at it and consider the sketchiness of the evidence as we make a decision.”

This was a bench trial, and experienced judges can do that.  I suspect that in a jury trial, where ordinary people cannot realistically be expected to ignore admissibility issues when judging the reliability of a piece of paper they’ve been given, the judge would have sustained my objection.

In the end, the judge found that the evidence just wasn’t strong enough to issue a judgment against my client.  While it is a bit more difficult to win like this, it ultimately is better for the consumer because the decision is virtually immune to appeal.  Decisions on admissibility are thumbs-up or down decisions that an appellate court can overturn for any good reason.  Decisions as to the credibility of witnesses and the finding of facts are the purpose of the trial court, and could only be reversed if the court of appeals found that the trial court’s decision was so wrong that no reasonable person could possibly reach that decision.

Here, the judge made the right decision, and another Alabama consumer was saved from financial ruin by a debt collector.

Debt Collector Pays Mobile, Alabama Woman to Settle FDCPA Lawsuit – Alabama Consumer Credit Attorney Judson E. Crump

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Back in October 2013, a Mobile woman came to me with a debt collection lawsuit brought against her by Portfolio Recovery Associates.  She was in dire straits and had no way to pay for a lawyer, but she also could not afford to lose 25% of her wages to a garnishment.  So I took her case pro bono.  I went to the District Court and after I appeared in the case, the collection attorney dismissed the lawsuit.  All was well, or so we thought.

Until my client called me saying that she’d received a phone call from Portfolio Recovery Associates seeking to collect on the debt.  That’s illegal, so I sued them in federal court on April 10, 2014.

The federal court did not make any findings that PRA had violated the law, and PRA did not admit to violating the law.  But they did agree to settle the case by paying my client $1,250 and paying my attorney’s fees separately, so my client got to walk away with $1,250 for her trouble.  She really needed the cash, too, because the same week she got her settlement, she got hit by a hit-and-run driver.

Debt Collectors pay my clients. Not the other way around.
Debt Collectors pay my clients. Not the other way around.

A debt collector cannot call you to collect a debt that’s been dismissed in court.

A debt collector cannot ask for money for a debt you’ve already paid or settled.

A debt collector cannot report a paid-off debt to a credit reporting agency as still being owed.

Like the rest of us, debt collectors must obey the law.  If they don’t, they must pay.  It’s quite simple.

If you’re getting harassed or troubled for debts you’ve settled, paid, beaten in court, or just don’t owe, you CAN do something about it.  And it can be worth your time, too.  Just ask my client.

$19,000 Default Judgment Vacated – Alabama Collection Defense Attorney Judson E. Crump

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If you are not served with the Summons and Complaint in a collection lawsuit, then a default judgment entered against you in that lawsuit is void.  That was the point I made to the Mobile County Circuit Court at a hearing on my Motion for Relief from a default judgment on July 11th.  My client had apparently been sued by Credit Acceptance Corp. back in 2010.  They were unable to serve process (meaning deliver a copy of the lawsuit papers) upon her directly, so they sent a copy by certified mail to the address they had on file for her.  The U.S. Postal Service delivered it and someone signed for delivery.

The collection attorneys filed a copy of the signed return receipt with the court and moved for a default judgment.  It was granted without opposition.  There was one problem, though: my client didn’t live at that address.  She had lived there briefly back in 2006, but had long since moved away.  So the person who signed for it was not capable of receiving service for her.

It is possible to "undo" a default judgment after it has been entered, but only if you can show that you never had a chance to see the Complaint.
It is possible to “undo” a default judgment after it has been entered, but only if you can show that you never had a chance to see the Complaint.

She didn’t even know about the judgment until one day out of the blue, her paycheck was missing some of its dollars.  She found out that she’d been garnished on a judgment she never knew existed.  So she came to me for help.  I filed a motion for relief from the judgment.  It was granted and now my client will have her chance to defend herself from this suit.

Normally, default judgments are permanent.  They are only reversed in specific circumstances, and if the complaint was received by an adult at your address, or someone who is your agent (like a spouse), you’re stuck with it.  But when you can show that you’ve never been served with the complaint in the first place, your constitutional right to due process of law provides that you can reverse the default judgment and get your day in court.

$3100 Alarm System Collection Suit Dismissed at Trial – Alabama Consumer Credit Attorney Judson E Crump

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My Client was sued for $3,100 for an old alarm company bill. We successfully objected to the debt buyer's evidence and the Court granted our motion to dismiss the case at the close of the Plaintiff's testimony.
My Client was sued for $3,100 for an old alarm company bill. We successfully objected to the debt buyer’s evidence and the Court granted our motion to dismiss the case at the close of the Plaintiff’s testimony.

 

Last week, a client came to me who had been sued by a debt buyer for $3,100.  Allegedly, the debt was based on an old alarm system account that had gone unpaid.  The debt buyer, a smaller outfit called Harbin, LLC, actually brought a corporate officer to court to testify as to their documentation and information procedures.  We made a number of objections to their proof, and the court sustained several of them.  My client was in court and prepared to testify that she had in fact paid the debt, but it wasn’t necessary.  At the close of the debt collector’s case, I moved for dismissal based on their inability to prove their case.  The court sustained my objections and entered an order dismissing the case.  Another collection lawsuit defeated in Mobile County.

Next week: I go to Fairhope to take on Midland Funding in Baldwin County.  They subpoena’d my client as a witness, which is an unusual step.  We’ll see how it goes.

Debt Settlement on the Courthouse Steps: 75% Discount – Alabama Consumer Credit Attorney Judson E Crump

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At 8:30 on the morning of April 23rd, I got a phone call as I was getting ready to go to work.

“Mr. Jones” was sued in Small Claims Court by a debt buyer called Midland Funding for $2,000, and he had a trial date at 2:00 p.m.  The suit was allegedly for a credit card balance that had been unpaid back when the client had gotten audited by the IRS and hit with a huge tax bill.  He tried to settle it with the original credit card company, but he couldn’t keep up the payments.  He couldn’t afford to pay the $2000 they were asking for, so he hired me to defend the case.

It was Small Claims, which means that depending on the judge, bad evidence can possibly be allowed into the record, unlike in higher courts.  The collection lawyer was there with a lot of documents and some past statements.  But I pointed out a few weaknesses in the way they’d brought the case, and I offered $500, which was what my client said he could afford to pay.  After reviewing the evidence and considering the possibility that they’d get nothing at all, they agreed to accept the offer.

 

Another Victory: Beat a $13,000 lawsuit by Midland Funding today. – Alabama Consumer Credit Attorney Judson E Crump

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Our continuing efforts to save the families of South Alabama from credit card debt have born another ripe fruit today. In Mobile County Circuit Court Case No. CV-13-901687, I appeared in court today to defend my client from a lawsuit demanding $12,967.43 + $260 Court Costs for an alleged Sears Mastercard account. The Plaintiff, Midland Funding, was represented by Holloway & Moxley of Montgomery, Alabama and they did an unexpectedly good job of proving their case. Midland sent in a witness from St. Cloud, Minnesota to testify as to the accuracy of Midland’s records.

After a 1 1/2 hour trial, we won a judgment for the defendant.

Here’s a copy of the order:

Beat Midland Funding at Trial

The South Alabama debt relief stimulus package continues…

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