One Main Financial’s legal troubles continue to mount as a Dodge County judge vacated a judgment and allowed a debtor to file counterclaims in a small claims collection case.
One Main had filed suit against the debtor in May 2023. The debtor was not able to go to court and did not think she could hire a lawyer to defend her. One Main obtained a default judgment against the debtor, and then filed an earnings garnishment against her, eventually garnishing her for the full amount of the judgment – more than $2,000 – despite the fact that the debtor provided proof that she was receiving need-based public assistance and was therefore exempt from garnishment.
The debtor then learned that LawtonCates represents debtors on a contingent fee basis and that she could take action without having to pay lawyer fees out of her pocket. Attorney Briane Pagel filed a motion to reopen the case, arguing that One Main’s complaint was illegal and did not comply with Wisconsin law regarding the information it must supply when suing consumers; and also arguing that One Main had illegally garnished her wages.
The Court ruled that One Main’s complaint raised questions about whether One Main had complied with Wisconsin law, ordered that the judgment be vacated, and allowed the debtor’s counterclaims to proceed. One Main will have to refund the money it improperly garnished while the case is pending.
This is not the first time that One Main’s practices have come under scrutiny. In the summer of 2024, a former federal judge ruled in an arbitration that One Main’s collections complaint violated Wisconsin law, and allowed the case to proceed to a hearing on damages.
If you are facing garnishment, or if you have creditors or debt collectors calling, writing, and filing lawsuits against you, contact LawtonCates for a free consultation with our consumer protection lawyers.
