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DannLaw files federal class action suit against Phoenix Financial Services, LLC for engaging in “zombie debt” scheme, separate suit claims Central Research, Inc is willfully violating federal consumer protection laws

Marc Dann

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Attorneys for Cleveland, Ohio-based DannLaw, one of the nation’s leading consumer protection law firms, today filed separate class-action suits in Federal Court against Phoenix Financial Services, LLC and Central Research, Inc. The suits allege that both firms have repeatedly violated the Fair Debt Collections Practices Act (“FDCPA”), the federal law that prohibits debt collectors from engaging in abusive, deceptive and unfair practices.

Former Ohio Attorney General and DannLaw founder Marc Dann said the case against Phoenix Financial Services involves the firm’s efforts to collect “zombie” debt. “In Ohio, creditors are barred from suing to collect after four years,” he said. “But if the debtor makes a payment after the statutory time limit, the dead debt is brought back to life. That’s why the term zombie applies.”

“The law requires companies like Phoenix to tell consumers they aren’t obligated to pay a debt after the time limit has expired,” Atty. Dann continued. “Unfortunately, Phoenix and a number of other companies featured in a Washington Post story about the growing zombie debt industry, ignore that requirement and instead try to trick people into paying thousands of dollars they don’t actually owe. The practice is illegal and immoral so we’re asking the Court to make our clients whole and to bar the company from misleading consumers.”  The suit was filed in the United States District Court for the Northern District of Ohio, Eastern Division at Cleveland.

According to Attorney Brian Flick, Managing Partner of DannLaw’s Cincinnati office, the suit against Central Research alleges that the Lowell, Arkansas debt collection firm has engaged in false, deceptive, and or misleading conduct by sending collection notices to debtors that list the amount due but do not disclose that the balance may increase due to late fees, interest, and other charges.

“A number of courts have ruled that debt collectors must tell consumers the amount they owe when they receive a demand letter will grow each and every day,’ Atty. Flick said. “Central’s conscious decision to disregard those rulings and the FDCPA have harmed our lead client and hundreds of other Ohioans. We’re determined to hold the company accountable for willfully violating the law.” The Central Research case was filed in the United States District Court for the Southern District of Ohio, Eastern Division.

Both suits seek statutory and actual damages and include a demand for a jury trial.

For more information, please contact Atty. Marc Dann at 216-373-0539/[email protected] or Atty. Brian Flick at 513-951-7124/[email protected]

The pleadings and exhibits may be viewed/downloaded by clicking on the links below:

Allen_Candace_2019_08_08_Complaint_draft_v_2.0

Allen_Candace_2019_08_09_Exhibit_A_-_Dunning_Letter

Hall_Warren_2019_08_08_Complaint_v_2.0

Hall_Warren_2019_08_09_Exhibit_A_-_Dunning_Letter

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Former Ohio Attorney General Marc Dann recently asked the members of the Ohio General Assembly to eliminate the criminal statute of limitations for rape and extend the civil statute of limitations for sexual abuse. Atty. Dann who led efforts to strengthen the state’s rape, sexual abuse, and sexual predator laws as both a member of the Ohio Senate and Attorney General cited the sexual abuse scandals that have roiled the Catholic Church, U.S. Gymnastics, Penn State, and the Ohio State University as reasons why reform is needed now more than ever.

Following is the letter he sent to Speaker of the House Larry Householder, Senate President Larry Obhoff, and all members of the GA in early June:

June 3, 2019

President Larry Obhoff

Senate Building

1 Capital Square 2nd Floor

Columbus OH 43215

Speaker Larry Householder

77 S.High St. 14th Floor

Columbus OH 43215

*Sent via electronic mail

 

         Re:            Criminal and Civil Statutes of Limitations for Rape

 

Dear Mr. President and Mr. Speaker:

I write to you today to express my support for legislation that will eliminate the criminal statute of limitations for rape in the state of Ohio. Like the current and former attorneys general who registered their support for this proposal earlier this week, I devoted much of my time as Ohio’s AG to ensuring that law enforcement had the resources needed to pursue, prosecute, and incarcerate offenders.

While I applaud the AGs for their advocacy on this important issue, anyone who truly cares about the victims of this heinous crime knows we must do more than erase the criminal SOL. We must also extend the civil statute of limitations to 20 years so that victims have the time they need to hold their rapists and their rapists’ enablers accountable for the pain and suffering they have caused.

I first learned about the terrible physical and psychological pain victims endure in 2005 when I led the effort to pass Senate Bill 17 while serving as the Ranking Member of the Senate Civil Justice Committee. After hearing harrowing testimony from women and men who had been sexually abused as children, both the Committee and the Senate unanimously passed the bill which contained a provision that extended the civil SOL to 17 years.

Unfortunately, in one of the ugliest and most destructive displays of the negative impact big money donors can exert in the state’s pervasive “pay-to-play” culture, the nation’s multi-billion-dollar insurance companies placed the pursuit of profits ahead of the interests of victims and succeeded in stripping the civil SOL extension from SB 17 when it reached the House.

Today, 14 years after that shameful act of legislative malfeasance, the need to significantly extend the civil SOL in more urgent than ever before. A fact underscored by the sexual abuse scandals that have roiled the Catholic Church, U.S. Gymnastics, Penn State, and the Ohio State University. In each of these cases as well as many others, powerful officials and administrators looked the other way as innocent boys and girls were abused. And, in many of these cases those boys and girls, who often did not come forward until years after they were assaulted, were left with little opportunity to obtain the justice and just compensation they deserved because the civil stature of limitations had run out. In effect, they have all been victimized twice: by their rapists/abusers and by a political system held captive by the insurance industry and institutions that vigorously oppose legislation that would hold them accountable.

Fortunately, Representatives Kristen Boggs and Tavia Golonski are taking up the work I and my Senate colleagues of both parties began in the Senate in 2005. They have promised to introduce a bill that will address both the criminal and civil statutes of limitations. Extends the civil SOL to 20 years and tolling it until a child victim turns 18 years of age will represent a monumental step for victims and impose much-needed accountability for those who committed monstrous acts and those who knew what was happening but chose to look away.

It is my sincere hope that the current and former AGs who registered their support for eliminating the criminal SOL will join me in advocating for victims past, present, and future.

Sincerely,

Marc Dann

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Ohio Sheriff Sale Eviction Process

How Long Do I Have in My House After a Sheriff Sale?

Once the Ohio foreclosure process is over and your home has been sold at a sheriff sale, you are not yet legally required to leave your home. There are a few steps the sheriff, court and new owners must take before you can be evicted. You may also be able to save your home or stay the eviction process.

The Ohio Sheriff Sale Eviction Process

Once your lender obtains a Final Judgment of Foreclosure, the sheriff sale process will begin:

  1. The sheriff appraises your home with the aid of three neutral parties. The sale will then be advertised in a local newspaper for three consecutive weeks.
  2. The sheriff sale is held. The sale is a public auction. The property may not be sold for less than 2/3 of its appraised value. The lender is often the winning bidder. It is important to note that you are not required to leave the property and the buyer cannot change the locks or otherwise obstruct you from continuing to reside in the property when the sale concludes.
  3. What is known as a redemption period begins immediately after the sale. The sheriff has 60 days to inform the court of the sale. The court then has 30 days to confirm it. This is called “redemption period” because during these 90 days you can redeem your home by paying the full amount owed on the judgment plus any fees or costs incurred during the foreclosure. This could take the full 90 day period, but may also be completed in only a couple days. Therefore, it is wise to move fast if you plan to redeem your home.
  4. Once the sale has been confirmed, the deed will be drawn up and the buyer will pay the purchase price and record a new deed. At this point the buyer has possession of the property and you can be evicted.
  5. The buyer can request a Writ of Possession and the sheriff will generally give you 3-7 days to vacate the property.
  6. If you do not move by the deadline, the sheriff will remove your belongings from the house. You may request an deadline extension from the sheriff’s office, but they are not obligated to grant the request.

You can choose to wait out the time period and save money to pay for a new place to live. You may also hold out in the hope that the new owner will offer you money to move sooner, a transaction known as “cash for keys.” You also have the right to file for bankruptcy, which will stop all foreclosure proceedings. You should speak to a professional Ohio bankruptcy attorney to see if this is a viable option.

At DannLaw, we provide sound advice throughout the foreclosure process and make sure you are not removed from your home before you are legally obligated to vacate. We can also help you stay the sheriff sale and fight to keep your home. Contact us today to learn more about your options when facing an Ohio sheriff sale.

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Ohio Chapter 7 Bankruptcy Income Limit

If you are buried under a mountain of debt and your phone is ringing constantly with harassing calls from creditors and debt collectors, it may be time to consider filing for bankruptcy. Bankruptcy exists to help you regain control of your life without being weighed down by the nasty side effects of debt, including wage garnishment, mounting late fees, interest charges and unpleasant phone calls and letters. There are two major types of consumer bankruptcy filings: Chapter 7 and Chapter 13. It is important to note, however, that you don’t necessarily have a choice between the two. Ohio Chapter 7 bankruptcy income limits will determine if you are eligible to file under Chapter 7.

Chapter 7 vs Chapter 13 Bankruptcy

Chapter 7 is liquidation based. This means unsecured debts are wiped away after you sell all non-exempt assets to pay back creditors. In many cases, most if not all your assets will be exempt from liquidation, which means you can keep those assets. Secured debts are unlikely to be discharged in Chapter 7.

Chapter 13 is repayment based. This means a five-year payment plan is put in place. At the end of the payment plan your remaining unsecured debts will be discharged. You you will still have to pay the collateral value of your secured debts.

It may seem like Chapter 7 bankruptcy is the best and most obvious choice. But there are measures in place to ensure that only people who truly need Chapter 7 debt relief can obtain it. To qualify, your income must be under the Ohio Chapter 7 bankruptcy income limit for Ohio. If your income is too high, then you must pass the Ohio Chapter 7 means test, which calculates whether you have enough disposable income to pay back some of your unsecured debts.

The Means Test and Ohio Median Income Limits

Your eligibility for Chapter 7 bankruptcy in Ohio is dictated by how your annual household income compares to the median household income for a household of the same size. While we are going to use numbers determined after November 1st, 2018, you can find the exact numbers for your time period at the U.S. Trustee Program website.

The median income for a single earner is $48,441, a two-person household is $60,822, a three-person household is $73,182, and a four-person household is $87,321. Every additional person in a household beyond four adds an additional $8,400 to the total. Your annual income is determined by adding your average monthly income over the past six months and then dividing the total by six. If the result is less than the median income, you automatically qualify for Chapter 7.

If your income is more than the median, you don’t need to give up. You just have to use the means test. The court is concerned that because your income is high enough, you may be able to pay back some of your debts. In order to display that you need to file for Chapter 7, you must prove that your disposable income is not high enough to satisfy a repayment plan under Chapter 13.

Means Test and Disposable Income

The means test requires you to calculate your income and expense information. Income includes almost all sources of income you have, including business income, interest and dividends, pensions and retirement plans, household expenses paid by others, alimony and child support, worker’s compensation and unemployment income, amongst others.

Allowable expenses are subtracted from your average monthly income. These expenses are based on national standard of living, car ownership and out of pocket health care costs, as well as local standards for housing and transportation. These expenses are derived from information supplied by the Census Bureau and the Internal Revenue Service.

If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and may file for Chapter 7. If you are over $12,475 then you do not pass the means test and must instead consider Chapter 13 bankruptcy for debt relief. If you fall in between these two values you must do additional calculations to determine if you have enough income to pay 25% of your unsecured debts over the next five years. If you don’t, you qualify for Chapter 7. If you do, Chapter 13 is your only option. In addition, the court after examining the totality of your circumstances, may decide you qualify for Chapter 7. All calculations aside, if you demonstrate a need for Chapter 7 due to events like a serious family or medical matter, the court may allow you to file Chapter 7.

Ohio Means Test Exemptions

In some instances, you do not have to pass the means test to pursue Chapter 7 bankruptcy. These include situations in which the debt in not consumer debt like credit card or medical debt. You also are exempt if you are a disabled veteran and incurred your debt while on active duty or during a homeland defense operation.

Find Out if Bankruptcy Is Right for You

Sorting all the information about Ohio bankruptcy income limits, expenses and whether you qualify for Chapter 7 or must utilize Chapter 13 can be confusing. That’s why DannLaw is here to help you determine the best course of action for your situation. Contact us today for a free case evaluation so we can find the right solution to your debt problems.

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If you or someone you know has been victimized please contact DannLaw by email or call 216-452-1028 today.

Buca di Beppo, Earl of Sandwich, Planet Hollywood, Chicken Guy, Mixology or Tequila Taqueria Data Breach
The Earl Restaurant Group just announced that that cyberthieves gained access to debit and credit card information of 2,000,000 people who visited Buca di Beppo, Earl of Sandwich, Planet Hollywood, Chicken Guy, Mixology or Tequila Taqueria restaurants in the United States between May 23, 2018, and March 18, 2019.
According to cybersecurity experts, the stolen information can be used to create counterfeit cards to purchase high-priced items from other retailers. This breach affected all Buca Di Beppo locations in Ohio; Chicago, IL; and New York City, NY as well as the Earl of Sandwich and Planet Hollywood locations in New York City.
Along with contacting DannLaw by email or phone, if you believe your credit or debit card information has been compromised we recommend that you carefully review your credit and debit card statements from the past year for any odd charges you didn’t make. Contact your bank or credit card issuer if you find suspicious activity, so you can get a new card and account number.
Kona coffee mislabeling scam
Growers in the Kona region of Hawaii have filed suit against the stores/online retailers listed below alleging they have been labeling and selling non-Kona coffee as Kona coffee for years.
As a result of this alleged fraud, consumers who purchased the mislabeled coffee have been overcharged. The amount consumers overpaid could be significant based on their coffee consumption. We are preparing to seek financial compensation for anyone who has been victimized by the mislabeling.
Retailer/online outlets include: Kroger’s, Walmart, Costco, Amazon.Com, Bed Bath & Beyond, T.J. Maxx, Marshalls Albertson’s, Safeway, Pacific Coffee Inc., Sprouts Farmers Market, Inc., Hawaiian Isles Kona Coffee, Cost Plus/World Market, Boyer’s Coffee Company, Inc., Java LLC, A Copper Moon Coffee, Gold Coffee Roasters, Cameron’s Coffee.
Wells Fargo Loan Modification Scam
Wells FargoThe scam artists at Wells Fargo strike again. This time the bank enticed homeowners to apply for trial mortgage loan modifications even though they knew the borrowers had little if any chance of being offered a permanent modification. That didn’t matter to Wells-the lender simply wanted people to make additional, higher payments as they moved toward foreclosure.
Wells sent its latest victims a letter of apology and a check for $300. We believe homeowners deserve much more. If you or someone you know were involved in this incident contact us today so we can evaluate your situation and determine if you are entitled to financial compensation.

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Since July 2, 2018, the Ohio Bureau of Motor Vehicles (BMV) has allowed the state’s 200 deputy registrars to charge people obtaining or renewing driver’s licenses or state-issued I.D.s a $1.50 lamination fee even though the registrars were no longer producing—or laminating—the cards on site. As a result, an estimated two million Ohioans have been charged $3 million for a service that was not performed.

Catherine Turcer, executive director of Common Cause Ohio, told the Columbus Dispatch the registrars should not be pocketing the fee. “Clearly, the registrars should not be charging for something they are not providing … that’s not fair. Many of us don’t think about a buck fifty, it’s not a big deal. But it is a big deal when you think about being charged extra fees for no reason. We want to spend our money on what we expected.”

Attorney Marc Dann, founder of the Cleveland-based consumer protection law firm DannLaw agrees with Ms. Turcer. And, if the messages that have been pouring into the firm’s Facebook page are any indication, so do people who paid the bogus fee. “We posted an item on our Facebook page asking anyone who has renewed their license or state I.D. since last July to contact us,” the former Ohio attorney general said. “The response was overwhelming. Those who paid the fee were outraged. They want their money back and they want the state to stop ripping people off.”

Today the legal team at DannLaw took the first step toward recovering the unwarranted fees by filing a class action suit against the BMV in the Ohio Court of Claims. The suit asks the Court to award anyone who paid the lamination fee $1.50 plus interest. The complaint may be read/downloaded here:Madyda Alexander 2019 03 19 Complaint – Lamination Fee INITIAL DRAFT (002)

“While the dollar amount on a per-person basis may be small, there’s nothing trivial about the BMV allowing the registrars to pocket $3 million for doing nothing,” Atty. Dann said. “If everyone shrugs their shoulders and says ‘it’s only a buck fifty’ does that mean it’s ok for the state to grab five dollars or ten dollars from its citizens? Where do you draw the line? At its core, this case isn’t about the $1.50, it’s about holding government officials accountable for their actions. That’s the best way to ensure that something like this doesn’t happen again.”

According to Atty. Joe Romano of Bay Village, Ohio who is serving as co-counsel on the case the overcharges stem from the fact that in order to comply with federal regulations the BMV itself rather than the registrars began producing and mailing the licenses and I.D. cards last July. “Apparently, and this is something we hope to learn more about as the case progresses, neither the deputy registrars nor the staff at the BMV noticed that people were still being charged the $1.50 lamination fee even though the registrars weren’t laminating a darn thing,” he said.