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Judge Certifies Ann Taylor LOFT Card Class Action Lawsuit
By Courtney Coren
A 2011 lawsuit brought by Ann Taylor LOFT credit card holders was granted class action certification by a New York federal judge on Tuesday. The class action lawsuit accuses World Financial Network National Bank, which issues the cards, of violating the Truth in Lending Act.
Lead plaintiff Ester Kelen alleges in the class action lawsuit that WFNNB failed to provide disclosures to new LOFT credit card holders regarding their billing rights and the creditor’s responsibilities, in violation of the law. Kelen filed the class action lawsuit in 2011. She is asking for $1 million in statutory damages for each alleged violation of TILA.
WFNNB tried to have the class action lawsuit dismissed based on the grounds that Kelen has been involved in four other class action lawsuits that were litigated by the same attorneys she is using now, according to court documents.
U.S. District Judge Paul A. Crotty dismissed the bank’s objections, finding that Kelen is a suitable lead plaintiff and that the lawsuit meets the numerosity, commonality, and typicality conditions required of class action cases.
“Plaintiff has knowledge of the action and a desire to represent the class,” Judge Crotty wrote in his Nov. 12 decision. “Kelen has been a plaintiff in such actions before, and she actively sought out her lawyers upon acquiring the Anne Taylor LOFT Card [sic]. These facts show Kelen’s initiative in bringing the lawsuit.”
In addition to certifying the case, Judge Crotty also appointed her lawyers as class counsel.
“Defendant feigns concern for the class members, arguing that their interest in individually controlling the prosecution of separate actions militate against finding superiority,” Crotty wrote. “There is no evidence, however, that the potential class members have their own lawyers willing and able to proceed on their own.”
Class Members of the Anne Taylor credit card lawsuit include all LOFT card holders who were furnished with a deficient opening disclosure statement on or after June 27, 2011. The class could potentially include thousands of consumers due to the fact that opening forms were sent to every LOFT card holder across the country.
“While Congress does not always favor class actions, TILA specifically contemplates and allows class actions to address creditors’ failures to comply with the statute and applicable regulations,” Crotty said. “Class actions are preferable to a flood of duplicative suits,” Crotty said.
The plaintiffs are represented by Brian L. Bromberg and Michael N. Litrownik of Bromberg Law Office PC and by Harley Jay Schnall of the Law Office of Harley J. Schnall.
The Anne Taylor LOFT Card Class Action Lawsuit is Kelen v. World Financial Network National Bank, Case No. 1:12-cv-05024, in the U.S. District Court for the Southern District of New York.
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