An Illinois man filed a lawsuit in St. Clair County (Ill.) Circuit Court seeking a judgment of more than $1.5 million in punitive and compensatory damages against several banks and collection agencies.
Roger Benson accuses Chase Bank USA, Frederick J. Hanna & Associates PC, Weltman, Weinberg & Reis Company, LVNV Funding LLC, Resurgent Capital Services LP and United Collection Bureau Inc. of improperly attempting to collect a debt.
Such lawsuits, literally thousands, are filed each year against collection agencies and creditors (
This case, with the number of defendants, is just one example illustrating how many parties can be involved.
Benson claims the defendants violated the Fair Debt Collection Practices Act and Illinois' Collection Agency Act by not providing validation of the debt, demanding payment on an account that had been settled and transferring collection activities to other agencies. He also accuses the companies of consumer fraud. He is seeking a jury trial.
Benson says he was living in Arkansas in November 2008 when he reached a settlement on a debt with Chase Bank. He made the payment by money order and the bank endorsed it, allegedly satisfying the debt on the account, Benson states.
In June 2009, Benson says he started getting collection letters after moving to Illinois. In the complaint, he says the notices from United Collection Bureau demanded he pay $4,700 on the already settled account. Benson, according to the complaint, in August 2009 claims he wrote the company asking for validation of the debt, which he says he never received.
In October 2009, Benson says Frederick J. Hanna & Associates sent him a demand letter for the same amount on the same account. Again, Benson claims he asked for validation and verification of the amount owed, which he allegedly never received. Two years later Weltman, Weinberg & Reis allegedly sent Benson a demand letter for the same Chase Bank debt which was now held by LVNV Funding.
Total lawsuits filed in the U.S. this year citing alleged Fair Debt Collection Practices Act (FDCPA) violations reached 9,917 through October, tracking nearly one full month ahead of last year's pace when the 10,000 mark was reached on Dec. 1, according to WebRecon LLC, a Grand Rapids, Mich.-based company, tracks the data from the courts.
