The customer was allowed to proceed on claims that the online lender and debt collection firm violated the Wisconsin Consumer Act by not providing required notices and by filing error-filled pleadings.
A customer who took out an online loan and then was unable to pay the loan back has been allowed to proceed to a hearing against both the lender and the debt collector it hired, where the customer can submit proof of the violations and seek damages.
The customer alleged that Jora Credit, an online short-term lender, had made a loan to him under circumstances which made the loan “unconscionable.” After the customer was unable to pay the loan back, Jora Credit assigned the debt to Plaza Services, LLC, and Plaza filed suit against the customer. When Lawton Cates filed counterclaims on behalf of the customer, Plaza and Jora demanded arbitration, and once the matter was referred to the American Arbitration Association, Plaza and Jora moved to dismiss the customer’s claims.
The arbitrator refused to dismiss all claims. In an opinion issued September 4, 2024, the Arbitrator ruled that the customer could maintain a suit for damages based on several allegations.
First, the customer alleged that Plaza had violated the Consumer Act by suing him before he was provided a notice of assignment. Creditors who assign claims are required to provide notice of that assignment to the customer, and the arbitrator ruled that a customer who is not given a notice of assignment can sue for damages against a debt collector assignee.
Second, the customer alleged that Plaza’s collection attorneys made numerous errors in the complaint they filed in circuit court, and that Plaza therefore could be sued for illegal debt collection practices. The Arbitrator ruled that the customer was entitled to a hearing to determine if Plaza’s collection lawyers actually violated the law, and if so what damages were available.
Lawton Cates has obtained thousands of dollars for customers who are subject to predatory lending and collection practices, and often is able to do so without charging the customer any legal fees. Lawton Cates has also committed to defending customers and expanding consumer rights. If you are having trouble paying your debts or are facing collections, contact Lawton Cates today for a free consultation with our consumer protection attorneys.
