FDCPA Lawsuit Filed by Bankrupt Woman

A FDCPA lawsuit was filed against Nationstar Mortgage and Shapiro Kreishman & Associates alleging the companies tried to collect a debt from a woman who had filed for bankruptcy protection.

Plaintiff Nicole M. L. said in her debt collection lawsuit that she got a loan from Bank of America for the purchase of her house in 2010. However, she missed several payments.

When the bank began the foreclosure process in December 2012, Nicole filed for bankruptcy protection. The following January, Nicole filed a bankruptcy plan and listed Bank of America as a creditor. According to the FDCPA lawsuit, Shapiro, a representative of Bank of America, was given proper information concerning Nicole’s financial condition.

Nicole “was granted a discharge of the subject debt” officially in October 2013. Nationstar, along with Shapiro, was reportedly notified of the proceedings.

However, in August 2014, Nationstar and Shapiro allegedly practiced unfair debt collection and attempted to collect $67,439.91 from Nicole. Nicole discovered this when she was denied “credit opportunities,” according to the FDCPA lawsuit.

Because of the debt collection practices of the defendants, “Nicole has suffered from emotional distress, anxiety and mental anguish by the Defendant’s unlawful attempts to collect the discharged subject debt as she was led to believe her bankruptcy had no legal affect,” according to the FDCPA lawsuit.

FDCPA Violations

Nicole claims the defendants violated the Fair Debt Collection Practices Act in several areas. They allegedly misrepresented Nicole’s debt, “falsely asserted that the subject debt was owed at that time” when the companies were informed of her bankruptcy, and used the court to attempt to force her to pay a debt that she did not have to pay.The FDCPA lawsuit alleges, “Nationstar intended that Nicole rely on its misrepresentations to the courts in its efforts to induce her into paying a debt that she no longer owed, a debt that could not be legally enforced.”

Many individuals have filed FDCPA lawsuits against various debt collection agencies who have allegedly practiced unfair debt collection. Other forms of FDCPA violations include unlawful contact and misrepresentation.

This FDCPA Lawsuit is Case No. 1:15-cv-00894, in the U.S. District Court for the Northern District of Illinois, Eastern Division. 

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.