Comment by Thomas B. Hudson on December 30, 2009 at 2:52pm

Although I haven't seen any studies that address the issue, it's logical to me that as collections actions and repossessions increase, consumers who are trying to avoid their creditors' efforts will more frequently turn to lawyers to protect them, and that this will lead to an increase in counterclaims against creditors. Most lawyers will tell you that collection lawsuits frequently lead to counterclaims, and that those claims, for the most part, are the types of claims that would never have been brought absent the collection actions.

Comment by Brian Reed on December 30, 2009 at 2:55pm

My 2010 prediction is that entire practice of lender/discount fees used by many sub-prime lenders will be scrutinized heavily from a regulatory standpoint and in litigation. The fees charged to "dealers" for those loans are not included in the Truth-in-Lending box and results in a true cost of the loan much higher than what the disclosed interest shows.

Lenders need these fees to lend to deep sub-prime customers and normally do not have the ability to charge higher interest rates due to state usery laws. So in one regards it is somewhat deceptive to the consumer but yet at the same time, if the lender could not charge those fees the loan would not be approved and the customer who needs basic transportation would not be able to purcahse the car.

Comment by Marcie Belles on December 30, 2009 at 3:00pm

Makes sense, Tom. Any trends as far as how creditors fare in those times of increased litigation?

Comment by William Fowler on December 30, 2009 at 5:25pm

Marcie you asked: "Is the litigation spigot opening? Should we expect a slew of similar cases as we head into 2010?"

I do not believe this is an example of that possibility. Instead it could just be a possible case of Attorney greed and then again maybe not.

Reference: "Matthew C. Klase, Esq. by e-mail at Contact(at)WebbLLC(dot)com or by calling (770) 444-9325. Webb, Klase & Lemond, LLC is a law firm that practices complex litigation with a focus on litigation arising from wrongful deprivations by corporate and government entities. The firm has handled numerous consumer class actions."

Lawsuit claims that Louisiana-based Crescent Bank & Trust imposes greater fees, penalties, and interest upon its customers in conjunction with their automobile loans than is authorized by the loan agreements.

Atlanta, Ga. (PRWEB) December 30, 2009 -- Atlanta-based law firm Webb, Klase & Lemond, LLC has filed a class action lawsuit against Crescent Bank & Trust ("Crescent") alleging bad faith imposition of unauthorized interest, fees, and penalties on Crescent's automobile loan customers. Crescent has developed relationships with numerous new and used car dealerships across the country whereby Crescent purchases vehicle loans directly from the dealerships. Crescent has focused its auto loan business on sub-prime customers who are often not able to obtain financing through traditional channels. The lawsuit alleges that Crescent routinely ignores the actual terms of its customer loan agreements - which are purchased from dozens of different car dealerships across several states - and instead imposes a one-size-fits-all billing and payment system. The suit contends that this practice results in customers paying higher fees, interest, and penalties than authorized by their loan agreements.

The Plaintiff has brought class action claims for breach of contract, conversion, trespass to personalty, and money had and received. The Plaintiff has also asserted an individual claim for violations of the Georgia Fair Business Practices Act. Based on these claims, the Plaintiff alleges that Crescent is liable for all damages that have resulted from the imposition of improper fees, interest, and penalties on car and truck loan customers.

The case, styled Joseph v. Crescent Bank & Trust, is pending in the Superior Court of Fulton County, Georgia and has been assigned case number 2009-CV-179274. Crescent has not yet answered the case and the discovery process has not yet begun. After a suitable period of discovery, Plaintiff intends to move for certification of the case as a class action on behalf of all similarly situated Crescent customers.

If you wish to discuss this action or have any questions concerning this press release, please contact Matthew C. Klase, Esq. by e-mail at Contact(at)WebbLLC(dot)com or by calling (770) 444-9325.

Comment by JJ Hornblass on December 30, 2009 at 5:35pm

Is this, in fact, a post-collection counterclaim?

Comment by Marcie Belles on January 6, 2010 at 2:55pm

Here's a copy of the lawsuit:

crescentbanklawsuit.pdf

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