California Pro Solutions Debt Collection Class Action Settlement

By Anne Bucher | February 27, 2017

Category: Closed Class Actions

This settlement is closed!

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Debt Concept Rusted Metal Type

A settlement has been reached in a class action lawsuit alleging JQD LLC d/b/a Pro Solutions engaged in unlawful debt collection practices that violated federal and California state law. Pro Solutions is a debt collection company that is used by many homeowners’ associations.

If you are a current or former California homeowner whose homeowners’ association accounts were transferred to Pro Solutions since Nov. 19, 2009, you may be entitled to compensation from this debt collection class action settlement.

Plaintiff Gena Hanson asserts that Pro Solutions attempted to collect debts that it has no legal right to collect, and is therefore in violation of various federal laws as well as California’s unfair competition law. The class action lawsuit accuses Pro Solutions of violating the law in several ways, including:

Contacting homeowners and stating a debt amount that included charges not incurred by the homeowners’ association;
Contacting homeowners and stating a debt amount that included late fees in excess of those authorized under California law;
Contacting homeowners and stating a debt amount that included interest in excess of the amount authorized under California law;
Threatening or initiating non-judicial foreclosure on assessment debt below $1,800, exclusive of fees;
Refusing payments from homeowners; and/or
Collecting payments from homeowners and applying the payment to the costs of collection before the delinquent assessments were paid in full.

Hanson alleges these debt collection practices violate California’s Davis Stirling Act, which governs homeowners’ association debt collection practices in the state.

Pro Solutions denies any wrongdoing and maintains that the Davis Stirling Act does not apply to its debt collection practices because it is not a homeowners’ association. However, the company has agreed to settle the illegal debt collection class action lawsuit to avoid the expense and uncertainty of ongoing litigation.

The Pro Solutions class action settlement was preliminarily approved on Oct. 13, 2016.

Class Members who would like to opt out of or object to the Pro Solutions settlement must do so no later than March 6, 2017.

Who’s Eligible

Class Members of the Pro Solutions debt collection settlement include “all current or former California homeowners whose HOA accounts were transferred to Pro Solutions and where Pro Solutions, between November 19, 2009 to the present, either: (1) contacted the homeowner and stated a debt amount that included charges not incurred by the HOA; (2) contacted the homeowner and stated a debt amount that included late fees in excess of those authorized under California law; (3) contacted the homeowner and stated a debt amount that included interest in excess of the amount authorized under California law; (4) threatened or initiated non-judicial foreclosure on assessment debt below $1,800, exclusive of fees; (5) refused payments from a homeowner; and/or (6) collected a payment from the homeowner and applied that payment to the costs of collection before delinquent assessments were paid in full.”

Potential Award

Varies.

Class Members who file a claim for cash relief will receive a percentage of the Settlement Fund, which will be calculated by dividing the fees and costs collected by Pro Solutions from an individual Class Member during the Class Period by the total amount of fees and costs collected by Pro Solution from all Class Members.