You May be Entitled to Your Share of a $75 Million Settlement Fund

July 22, 2010 at 4:18 pm · Filed under Montana Consumer Law

Heenan Law Firm Assisting Hundreds of Montanans in Making Claims Against the $75 Million Trans Union Class Settlement Fund.

Major credit reporting agency TransUnion® has set aside $75 million to pay claims to people whose credit information was illegally sold to junk mail marketers.  Time is of the essence- In order to make a claim from the settlement fund, you must file a legal claim before September 16, 2010.

If you had a credit card, home loan, student loan, car loan or other credit account in the United States between 1987 and 2000, you most likely qualify to make a claim. (This is virtually everyone who borrowed money over the age of 28).  We are filing a combined lawsuit on behalf of hundreds of qualified Montana consumers.  Under the Fair Credit Reporting Act, statutory damages can be as little as $100 and as much as $1,000. 

The Heenan Law Firm will represent you on a pure contingency basis– that is, you pay no attorney’s fees, costs or expenses unless we make a recovery on your behalf.  We take all the financial risk in connection with prosecuting your Trans Union Lawsuit – you cannot owe us a penny unless we win on your behalf, and then only to the extent we win.

If you wish to be a part of this case and protect your ability to recover from the $75 million fund, please fill out and sign this authorization form:

Trans Union Authorizaton to Represent

If you wish for us to represent you, we need the completed questionnaire and authorization form NO LATER THAN SEPTEMBER 6, 2010.

FAQ ABOUT THE TRANS UNION SETTLEMENT FUND CLAIMS

What’s this Case About?

More than ten years ago, numerous lawsuits were filed against national credit reporting agency Trans Union alleging it had illegally sold information about people to “target marketers,” who in turn sent people unsolicited credit card offers and other “junk mail.”  (So, if you have ever received an unsolicited credit offer in the mail, it may be because Trans Union sold your credit information.)  The lawsuits alleged Trans Union’s sale of people’s credit information violated the federal Fair Credit Reporting Act.  Facing enormous possible statutory damages, Trans Union settled the case by establishing a $75 million fund.

How do I Make a Claim for a Share of the $75 Million Fund?

In order to make a claim for monetary damages from the settlement fund, you must file a legal claim in a court of law before September 16, 2010.

Will I Get Money from the Fund Even if I Don’t Sign Up to Pursue a Legal Claim?

No.  Unlike a class action, you won’t receive any money unless you affirmatively file a legal claim.  That is why we are working hard to assist as many possible eligible people get their share of the settlement funds.

Am I Eligible to Pursue a Claim?

You are eligible to sue for your share of the settlement fund if you had a credit card or line of credit (student loan, car loan, home loan, etc.) between January 1, 1987 and 2000.

How Much Can I Expect to Recover from the Settlement Fund?

We cannot guarantee whether or how much you will recover from the settlement fund.  Statutory damages under the Fair Credit Reporting Act range from as little as $100 to as much as $1,000.  We will be claiming the maximum $1,000 for each person who authorizes us to represent them, but whether and how much your actual share of the fund is will depend on a number of legal factors.

Will You Settle My Claim for More or Less than Someone Else’s Claim?

No.  Pursuant to our fee agreement, we intend to jointly represent hundreds or even thousands of eligible claimants.  We will attempt to negotiate a settlement where each of our clients receives the same monetary settlement.

How Much Does it Cost?

The Law Firm will represent you on a pure contingency basis– that is, you pay no attorney’s fees, costs or expenses unless we make a recovery on your behalf.  We take all the financial risk in connection with prosecuting your Trans Union claim- you cannot owe us a penny unless we win on your behalf.  Our fee is based on how much we recover for you, meaning it is in our own interest to get you the maximum recovery.

What if the Claim is Unsuccessful?

The lawyers will lose their time and money.  You will not be out anything.

What is the Deadline to Pursue a Claim?

You must file a legal claim by September 15, 2010.  If you want Law Firm to represent you, we need to receive your completed claim no later than September 6, 2010.  Any claim forms received after that date will not be accepted by Law Firm.

When Can I Expect My Settlement Money?

Legal claims can take months or even years.  We will not get paid unless and until you get paid, meaning it is in our own interest to get you a recovery as quickly as possible.  Please be patient with us and know we are working to get you your monetary settlement as quickly as possible.

I have Friends and Family Who May Also be Eligible.  What Should I Do?

We are making our friends and family aware of this special opportunity and hope you will do the same.  We want to help as many eligible people as possible.

Does My Spouse Need to Fill Out a Separate Claim Form?

Yes.  Everyone that wishes to preserve their right to recover against the settlement fund must fill out a separate claim, and will receive a separate settlement check upon successful resolution of the case.

Fill Out a TransUnion settlement fund authorization here:Trans Union Authorizaton to Represent

Comments (4)

John Heenan hands out bike helmets to local youth as part of Montana Trial Lawyer’s bike helmet give-away

June 22, 2010 at 3:30 pm · Filed under Uncategorized

John Heenan, representing The Montana Trial Lawyers Association, presented free bike helmets to dozens of afterschool kids at the Billings YMCA on Thursday, June 3.  Bike helmets are a simple and effective protection that we can provide for our kids. We want to work with school officials and others to get helmets out to our young kids, primarily those kids whose families are not able to afford them. If a helmet protects just one child from the tragedy of suffering a traumatic head injury, the program will be worth it for us.

John Heenan hands out bike helmets at YMCA

Comments

Complaints Against Debt Settlement Companies on the Rise According to BBB

May 7, 2010 at 3:14 pm · Filed under Debt Collector Abuse, Montana Consumer Law

The Better Business Bureau last week put out a consumer alert warning financially troubled families about misleading debt settlement company claims.  The article is posted below.  The Heenan Law Firm is actively prosecuting claims on behalf of consumers who allege they were mislead by debt settlement companies.  If you believe you have been mislead by a debt settlement company, contact us to see if you may have a legal claim.

Arlington, VA – April 29, 2010 – Better Business Bureau is warning financially troubled families to beware of misleading debt settlement companies that claim they can easily reduce or eliminate credit card debt.  Since the start of the recession, BBB has received more than 3,500 complaints from individuals, including many who paid hundreds of dollars in upfront fees to debt settlement companies but only fell deeper into debt.

“The debt settlement industry is flourishing and many families are being lured into believing that debt settlement is an easy fix and that their credit card debt will just disappear,” said Stephen A. Cox, President and CEO of the Council of Better Business Bureaus. “The truth is that the process doesn’t work for many consumers, it has potentially serious negative consequences, and should primarily be used as a last ditch effort to stave off bankruptcy.”

Consumers from all 50 states have filed complaints with BBB about debt settlement companies since the recession began in late 2007. In addition to BBB, angry customers are also taking their complaints to their state Attorney General. Attorneys General from Florida, Maine, Texas, Idaho, Missouri, New York, Illinois, West Virginia, Vermont and Minnesota have taken action against companies such as Dallas-based Debt Settlement America, Debt Rx USA, Financial Freedom of America and Credit Solutions—which has received more than 1,600 complaints alone in the last 36 months—and Austin-based Clear Your Debt and Swift Rock Financial Solutions.

Some practices by debt settlement companies are also coming under fire on Capitol Hill. On Wednesday, Senator Charles Schumer (D-NY) introduced the The Debt Settlement Consumer Protection Act which seeks to “protect consumers from deceptive, abusive and financially injurious practices rampant in the debt settlement industry.”

Typically with debt settlement (also referred to as debt negotiation), the consumer pays an upfront fee to the debt settlement firm with the understanding that the company will try to negotiate a settlement with creditors for less than what is owed. The debt settlement business works with the consumer to establish a plan for the consumer to put money into an account administered by the debt settlement company or a third party, and that money is used to pay any negotiated settlements. It will usually take at least six months to a year before there is enough money to start settling accounts, and during that time the consumer will typically not be making payments to creditors. Not only does this put the consumer at risk of having creditors file garnishments or other legal actions, his or her credit rating will likely suffer as a result of not making required monthly payments.

Complainants to BBB allege that instead of having their debt settled as promised, they were driven deeper into debt and sometimes sued by their creditors—which led to mounting legal fees—and had their wages garnished.  Some complainants decided after making several months worth of payments that they did not want to proceed with the debt settlement process, but the debt settlement company did not give them their money back which they had set aside—in one case as much as $15,000.

BBB warns families that are drowning in debt to look for the following red flags when considering getting help from a debt settlement or negotiation firm:

  • High upfront fees – Beware of companies that require large upfront fees before any debts are settled. Often, these upfront fees may be better used to reduce a consumer’s overall debt.
  • Promises that are too good to be true– Some companies might promise that they can reduce debt by more than half even before looking into the customer’s financial situation.
  • Claims that it’s a fast, easy and painless process. -  Reducing debt through debt settlement takes time—often years—and can have a significant negative impact on the customer’s credit score. It can also expose consumers to lawsuits and garnishments.

Before enlisting the help of a debt settlement company, BBB recommends that struggling consumers:

  • Contact their lender first. – Try to work out an agreement directly with your lenders before enlisting outside help.
  • Seek help from a non-profit credit counseling center – Credit counseling centers can provide guidance for little or even no cost. You can find a credit counseling center near you at the National Foundation for Credit Counseling, www.nfcc.org.
  • Consider debt settlement only as a last resort before filing for bankruptcy.   The debt settlement process can take years and have a severely negative impact on your credit rating and can limit your access to future credit. In the meantime, your credit card company or other creditors can decide to take you to court and garnish your wages.  It is best to avoid these potential consequences if you have other workable alternatives to dealing with your debt.
  • Research the debt settlement firm with BBB first. Find out how many complaints it has received, how the firm responded to complaints and whether or not there are any recent government actions or lawsuits against the company.

More advice on managing credit and paying down high balances is available through BBB’s Managing Credit – Made Simpler at www.bbb.org/credit-management/.

Comments (1)

Purchasing Uninsured and Underinsured Insurance Provides Critical Protection

December 9, 2009 at 10:25 pm · Filed under Personal Injury

Montana drivers are required to maintain a very low minimum liability insurance ($25,000) for injuries they cause to other motorists.  Some drivers disregard the law and maintain no insurance at all.  If a person with little or no insurance causes serious personal injury to you or a loved one, they may have little or no resources to cover expensive medical treatments and care.  We have seen a rash lately of people with serious injuries who were struck by motorists with no insurance or low policy limits who are now faced with mounting medical bills.  When purchasing or renewing your car insurance policy, tell your insurance agent you want to purchase enough uninsured and underinsured motorist coverage to make sure you and your family are protected.  (We recommend at least $100,000 of each.)

Comments (1)

Court Grants Preliminary Approval to D.A. Davidson Settlement

August 19, 2009 at 10:29 pm · Filed under Montana Consumer Law

The Heenan Law Firm, which brought and has served as co-lead counsel of the putative class action data breach lawsuit against D.A. Davidson, announces that the federal court has granted preliminary approval to the settlement reached between the parties.  More information about the D.A. Davidson settlement is available at www.DADSettlement.com.  A more detailed description of the settlement, as reported by the Billings Gazette, is described below.

CLAIR JOHNSON Of The Gazette Staff | Posted: Monday, August 3, 2009 7:20 pm

D.A. Davidson & Co. of Great Falls has settled a federal class-action lawsuit over clients’ information that was compromised by a computer hacker.

Chief U.S. District Judge Richard Cebull has given preliminary approval to a proposed settlement agreement that could affect an estimated 226,000 current and former customers. About 40 percent of the customers, or 90,000 people, live in Montana. A hearing for final approval is set for Nov. 12.

The data security breach occurred about Dec. 20, 2007, when a D.A. Davidson database of confidential personal and financial information of current and former clients was hacked by someone using sophisticated techniques. The company learned of the problem on Jan. 16, 2008, and immediately contacted law enforcement and other regulators and hired a forensic security consultant to investigate.

Although D.A. Davidson was prepared notify its clients and former clients of the breach almost immediately, it delayed notice for several days at law enforcement’s request, the settlement said.

The hacker did not gain access to the company’s operating systems or account information. No trading accounts were affected, the company said.

The settlement is the result of more than a year of negotiations between the parties from two initial lawsuits and one filed in May in federal court.

Under the deal, D.A. Davidson will continue to make available at its own expense a credit monitoring program that monitors customers’ credit reports daily and alerts them of indicators of possible identity theft. So far, nearly one-fourth of the class members, or 50,000 people, have enrolled in the monitoring program.

The settlement also makes available up to $750,000 to reimburse class members who can prove losses, with a limit of $10,000 per member. For those enrolled in the credit monitoring program, the agreement makes up to $250,000 available for reimbursement of expenses not covered by the program.

Class members will need to file a claim to prove their losses or expenses, but the procedure is less stringent than would be required if the claims were litigated, the agreement said. The claim procedure also includes a streamlined dispute resolution arrangement.

Comments

Harassing Collection Contacts to Neighbors and Relatives are Illegal

July 6, 2009 at 10:31 pm · Filed under Debt Collector Abuse

John Heenan was interviewed by the Billings Gazette regarding a debt collector’s contacts with the newspaper reporter, improperly asking her to “deliver a message” to her neighbor about a debt. The full text of the story is below.

Scams du jour

This bill-collection practice is illegal, but that didn’t stop Chrysler Financial from cold-calling me on a rare June afternoon when I was home on a workday after working an early shift.

Like most telemarketers, she asked for me by name, “Is Jan Falstad there?”

Always suspicious of telemarketing calls, I asked who was calling. She gave me a name and said she was trying to “get a message” to one of my neighbors.

Incredulously, I realized that this Chrysler caller was trying to use me to help them collect a debt. When I asked her if that was her motive, she denied it and said, “We’re just trying to get him to call us back.”

I told the caller I had no business relationship with Chrysler, that I was on the federal “Do Not Call” list and that meant her call was breaking federal law.

Finally, my anger rising, I said that I had no intention of helping Chrysler collect a debt and hung up.

Calling friends and neighbors to try to embarrass someone into paying a debt is a common, but illegal, practice under the Fair Debt Collection Practices Act, according to Billings attorney John Heenan.

Under this federal law, creditors can contact third parties only to verify the debtor’s contact information, like address and telephone number. Usually they already have that information, Heenan said.

“At that point it becomes per se harassment or deception,” he said. “They’re contacting you to embarrass him and to co-opt you into the debt-collection process, which invades your own right to privacy.”

But Amber Gowen, spokeswoman for Chrysler Financial at headquarters in Farmington Hills, Mich., said her company sometimes has to ask for help to try to reach a debtor.

“It is our policy that when we do talk to a third-party, we are extremely careful not to violate anyone’s privacy or divulge information that we are precluded by law from sharing with others,” she said. “This action is legal and permissible and a common practice in the industry.”
http://www.billingsgazette.com/business/article_e4d11b52-68f7-11de-81e1-001cc4c002e0.html

Comments (2)

Heenan Law Firm Recovers $311,000 for Victim of Debt Collection Harassment: One of Largest Debt Collection Verdicts Ever

April 19, 2009 at 10:32 pm · Filed under Debt Collector Abuse

A federal jury this week awarded the victim of debt collection harassment $311,000 in compensatory and punitive damages against a North Dakota debt collection law firm (Johnson, Rodenburg & Lauinger) who had sued him beyond the statute of limitations. The award is one of the highest ever in a debt collection harassment trial. John Heenan is proud to have helped his client achieve such a successful result.

FROM THE NEWSPAPER REPORT (http://www.billingsgazette.net/articles/2009/04/18/news/local/27-man.txt)

Man sues collector’s lawyers, wins lawsuit

By CLAIR JOHNSON
Of The Gazette Staff

A Laurel man with a disabling brain injury and no money told debt collector lawyers that the time limit for seeking payment had expired and that a suit had been dismissed before. But a North Dakota law firm sued him anyway, trying to collect a credit card debt on behalf of the creditor.

This time Timothy McCollough got mad. He hired a lawyer, got the suit dismissed and then sued the North Dakota law firm for violating debt collection laws.

$311,000 in damages

A federal jury agreed with McCollough and on Thursday awarded him $311,000 in damages after a three-day trial before U.S. Magistrate Judge Carolyn Ostby.

Billings attorney John Heenan, who represented McCollough, said the verdict sends a message: “Debt collector lawyers need to follow the rules in Montana.” McCollough stood up for the thousands of people getting sued by debt collection lawyers and who don’t know how to defend themselves, he said.

Attorney Fred Simpson of Missoula, representing Johnson, Rodenburg and Lauinger, the debt collector law firm, declined comment.

Unlawful litigation

McCollough sued the firm in 2007, alleging that it violated the federal Fair Debt Collection Practices Act and related state law by engaging in abusive, unfair and unlawful debt collection litigation. The firm tried to seize on McCullough’s disabilities through the misuse and manipulation of the court system, the complaint said. The firm has about 50 employees in Fargo and Bismarck; it has no lawyers in Montana but has several licensed to practice in the state.

Ostby ruled in November that the firm had violated the federal law by demanding attorney fees not allowed by Montana law; by filing and continuing a lawsuit barred by the statute of limitations in Montana; and by serving on McCollough requests for information that were “an abusive, unfair and unconscionable means to attempt to collect a time-barred debt.”

The jury further found that the firm’s actions violated the Montana Unfair Trade Practices Act, were malicious prosecution and an abuse of process.

The jury awarded McCollough $250,000 for emotional distress, the statutory maximum of $1,000 for violating the Fair Debt Collection Practices Act and $60,000 in punitive damages.

The punitive award was the maximum allowed under Montana law, which caps damages at 3 percent of a company’s net worth, or about $2 million in this case, Heenan said.

Ostby will determine attorney fees to be paid to Heenan. Heenan also said he will seek to have the judge triple the $250,000 damage award as allowed by Montana consumer protection laws.

McCullough’s lawsuit stemmed from a credit card debt he owed to Chase Manhattan Bank from the 1990s.

McCullough suffered a head injury in 1990 when he was hit with an iron bar. The injury left him disabled and eventually he began receiving Social Security benefits, which are exempt from collections.

Nevertheless, McCullough testified, he worked with other credit card companies to pay his debts. Chase was the only company that wouldn’t work with him, he said.

The debt was sold to a collection company, CACV of Colorado, which sued him in Yellowstone County in 2005. McCullough responded himself, saying the five-year statute of limitations had expired, he had no money and had been harassed by Chase. The case was dismissed.

Two years later, the North Dakota firm, on behalf of CACV, sued McCullough for $9,800, which included about $6,000 in interest and attorney fees.

Getting served a second time angered and frustrated McCollough.

“I was being shoved around,” he said. “I don’t like bullies. I never have. I got mad. I’m still mad.”

Billings attorney James Patten testified that he reviewed cases in which the North Dakota firm sued. The firm gets default judgments in 90 percent of its cases, which are judgments in its favor when a defendant doesn’t respond, he said. Only about 10 percent of the defendants get lawyers or represent themselves.

Johnson, Rodenburg and Lauinger filed about 2,700 lawsuits against Montana residents during an 18-month period ending about mid-2008.

“I think it’s a factory,” Patten said. “They are mass producing complaints and mass producing default judgments, most of which don’t have the documents to back them up.”

The firm maintained that it had done nothing wrong. But Lisa Lauinger, a partner in the firm, testified that the McCullough case has prompted the firm to change its procedures and that it now requires more documentation from clients before filing suit.

Comments

Foreclosure Defense AP Article- “Produce the Note”

February 17, 2009 at 10:33 pm · Filed under Debt Collector Abuse

The AP issued an interesting article today: Homeowners’ Rallying Cry- Produce the Note.  The article discusses the increasing defense to foreclosure actions by affected homeowners- “produce the note.”  Through the mortgage lenders’ practice of “bundling” and “securitizing” multiple mortgage notes, selling and re-selling those “bundles”, as well as their sometimes sloppy document retention policies, these lenders are oftentimes put in the untenable position of being unable to produce the documents necessary to succeed on a foreclosure action.

Comments (2)

Bud Hibbs’ New Book Empowers Consumers

January 12, 2009 at 10:34 pm · Filed under Debt Collector Abuse

Bud Hibbs, the longtime and accomplished Texas consumer advocate, has generously made his new book, “The American Credit System: Guilty until Proven Innocent,” available free online at his website: www.budhibbs.com.  The book teaches consumers how to deal with debt collectors and clean up their credit reports.  This is a very beneficial resource to those looking for help with debt collectors.  Bud’s website contains a wealth of information about virtually every major debt buyer and collector in the country.

Comments

Insurance Company Claim Tactics Exposed in New AAJ Report

December 28, 2008 at 10:34 pm · Filed under Personal Injury

The American Association for Justice has just released its original research report on insurance company tactics. Entitled “Tricks of the Trade: How Insurance Companies Deny, Delay, Confuse and Refuse”, the report details how insurance companies reward claims adjusters for denying claims and reap profits by denying as many claims as possible. The report is available here: http://www.justice.org/resources/InsuranceTactics.pdf

Fortunately, in Montana, insurance companies have statutory duties to act fairly and in good faith towards insureds and non-insureds. If you believe your claim has been improperly denied, or an insurance adjuster is handling your claim unfairly, give us a call or submit your claim confidentially online through the Heenan Law Firm website.

Comments