Charging Debt Purchaser With Consumer Fraud Requires Obvious Fraud By Initial Creditor

A consumer charged American Honda Finance Corp. with violations of the NJ Consumer Fraud Act, NJ Truth in Consumer Contract, Warranty and Notice Act and the Federal Truth in Lending Act when the consumer failed to make payments and Honda attempted to enforce the debt. Honda purchased the debt from and was not the originator of the loan. When the consumer made application for the loan, she was charged a “credit inquiry fee” and, when the suit was filed by Honda, claimed the “credit inquiry fee” was improperly excluded from the finance charge as an “application fee.” The consumer’s claim was that the inclusion of the “credit inquiry fee” incorrectly in the total amount financed instead of the finance charges increased her costs of borrowing money and was fraudulent. The court held that, as the manner in which the fee was charged when the consumer made application was not obvious to subsequent purchasers of the debt. Therefore, Honda, as a subsequent purchaser, could not be charged with violations of the NJ Consumer Fraud Act, NJ Truth in Consumer Contract, Warranty and Notice Act and the Federal Truth in Lending Act on the basis of the fee. If you believe a creditor violated your rights under the Consumer Fraud Act, you should seek experienced legal counsel immediately in order to fully protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.

Consumer Must Plead Violations of Consumer Fraud Act with Particularity

Consumer fraud claims require particularized pleadings by consumer in order to survive dismissal in court. A consumer who believes they have been defrauded must present true allegations meeting the statutory criteria. A statement by the defendant must have been false. The defendant had to know the statement was false. The false information must have been intended to or had the effect of inducing the consumer. The false information had to be material, meaning significant enough to affect the consumer's decision to buy. In the event the consumer fails to include in the pleadings violation of the specific provisions of the Consumer Fraud Act (CFA) the consumer's case will fail. If you are facing foreclosure, considering bankruptcy or an appeal in a bankruptcy matter, you should seek experienced legal counsel immediately in order to protect your rights. For more information on consumer fraud, foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.

Debtor's Transfer of Property to Wife is Fraudulent as Prepetition Planning

A debtor's transfer of his interest in real property to his wife in advance of filing bankruptcy is fraudulent when made with the intent to delay, hinder or defraud creditors. In a process termed "bankruptcy planning" debtors seek ways to maximize exemptions and assets in a bankruptcy. Although there are certain limited exemptions for both real and personal property, overreaching is fraudulent. A debtor may use cash on hand to pay debts that will not be discharged such as child support, spousal support, taxes or secured debt rather than paying unsecured creditors whose claims are likely to be discharged in the bankruptcy. Debtors may convert some non-exempt assets into exempt assets. However, a debtor may not take loans for the purpose of purchasing exempt property, increase unsecured debt in advance of filing or transfer assets to a spouse or other insiders for inadequate consideration. When such transfers are made the court will infer an intent to delay, hinder or defraud creditors. If you are considering bankruptcy you should seek experienced legal counsel immediately in order to fully protect your rights, avoid dismissal of your petition and understand how the bankruptcy laws can help you. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.

Credit Card Companies Must Submit Specific Proofs To Obtain a Judgment Against You in NJ

Capital One Bank, N.A. filed a complaint in the Essex County Superior Court against Palomino, the debtor, demanding $938.81 due from purchases made using her Capital One Visa card. The debtor's answer to the complaint was simply that she did not owe the money as she never had a Visa account. The trial judge granted summary judgment to Capital One Bank. The New Jersey Appellate Court restated the proof required to obtain a judgment on a revolving credit card debt. According to the prior case of L.V.N.V. Funding, LLC v Colvell, in a collections suit on a revolving credit card account, the creditor must set forth (1) the previous balance; (2) identify all transactions and credits; (3) set forth the corresponding interest rates; (4) set forth the balance on which the charge is computed; (5) set forth any other charges; (6) list the closing date of the billing cycle; and (7) provide the new credit account balance. Additionally, these forms of proof must meet federal requirements relating to credit card billing statements under 15 U.S.C. § 1637(b). If you are facing debt collections, you should consult an experienced consumer debt attorney immediately in order to protect your rights. For more information on debt collections, consumer fraud, foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.

Consumer Fraud Pleading Requirements

A complaint in Consumer Fraud must set forth claims upon which relief can be granted. Specific requirements include: (1) an assertion of intent to defraud, (2) there were misrepresentations made to the buyer which resulted in financial gain to the seller, and (3) the allegations of fraud must be made with particularity. Failure to meet the requirements will result in a dismissal of the Complaint. In a recent case, homeowners sued a contractor under the New Jersey Consumer Fraud Act (NJCFA) for damages in the amount of $250,000 for monies paid plus the cost of removing the substandard work and were awarded treble damages in the amount of $1,228,603.70. The contractor then filed for bankruptcy and the homeowners filed a complaint in the United States Bankruptcy Court seeking a judgment of nondischargability under Section 523(a)(2)(A) of the United States Bankruptcy Code. The homeowner's Complaint was dismissed for lack of proper pleadings and the contractor was able to obtain discharge of the $1,228,603.70 Judgment. If you are attempting to avoid a debt or someone is attempting to avoid a debt they owe you or you are considering filing a Complaint for Consumer Fraud or facing a Consumer Fraud Complaint, you should consult an experienced attorney immediately in order to protect your rights. For more information on consumer fraud, foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.