Capital One suit and regulatory action against CCDN

A very interesting summary of litigation and regulatory actions against Credit Collections Defense Network (CCDN) and attorney Robert Lock is in the Chicago Chronicle (article below).

WV AG McGraw complaint and exhibits: WV AG McGraw sues CCDN (FDRS credit repair and litigation)

I didn’t know that Capital One sued CCDN and others in 2008 and accused them of “forging the bank’s documents to show credit reporting agencies that the debts were settled when they were not.”

I really don’t understand why Capital One didn’t get them to shut down a long time ago!

According to the article, Capital One also accused them of advising consumers not to repay their debts (interfering with their business).

I’m by NO means a Capital One fan, after all, I also advise (near) judgment-proof readers to STOP paying their credit card debts to the big banks, including Capital One.

And I walk my talk.  I defaulted on my four Capital One credit cards in 2008.  It’s a moral and patriotic action and the only MEANINGFUL non violent action to protest the takeover by vile bankers who are destroying America and possibly much of the so-called civilized world.

Vote with your MONEY!

Unfortunately, it’s the ONLY vote that counts in America in the 21st century.

The difference between me and attorney Lock and ALL debt settlement companies:

I don’t charge THOUSANDS of dollars for my advice.

My advice is free.

And that’s why Capital One isn’t suing me despite my NUMEROUS public calls for consumers to stop paying the corrupt bankers.

Why give thousands of dollars to frauds like CCDN and FDRS to try to get out of debt?

You don’t need to pay ANYBODY to stop paying your debts!

You may notice the many Google ads to the right — ALL debt settlement / defense ads are for companies like CCDN or FDRS (see my investigation FDRS and Mark Cella Debt Elimination SCAM). Many falsely claim that consumers have the RIGHT to settle debts for less than the amount owed under new legislation, some target Christians and ALL are liars and cheats.

Why do we place Google ads on this site?

Please read — the Liars and Cheats EXPOSED website is about educating our readers.

PLEASE take the time to follow the money and learn how business is done.

Here is the Chicago Chronicle article:

Chicago lawyer faces suit over consumer debt practice

Robert Lock is target of credit giant Capital One and West Virginia regulator

April 19, 2010|By Ameet Sachdev | Chicago Law

A state regulator, consumer credit giant Capital One and consumers are going after a Chicago lawyer and his company, alleging deceptive debt settlement practices.

The West Virginia attorney general seeks to bar Robert Lock and CCDN LLC, also known as Credit Collections Defense Network, from doing business in that state. The April 1 complaint also names as a defendant Lock’s business partner, Philip Manger, a New York lawyer who lives in Connecticut.

West Virginia officials said CCDN is the center of a web of companies that lured clients with assurances that they could settle credit card debt for less than what was owed. The suit said the company promised that if consumers followed its program, their credit scores would improve. CCDN collected more than $20,000 from about 20 West Virginia consumers who did not have any of their debts resolved, said Douglas Davis, assistant attorney general.

Lock denied that CCDN is involved in debt settlement or credit repair. He maintained that the company manages a nationwide network of attorneys who assist overextended consumers in dealing with creditors and debt collectors to ensure fair collection practices. Manger did not return phone calls seeking comment.

“I’m afraid I’m a little constrained in what I can say, but our position is that the (West Virginia) complaint is completely baseless, and we’ll be filing an appropriate response,” Lock said.

For-profit debt settlement companies, similar to CCDN, have been the subject of much regulatory scrutiny, prompting calls for reform by the Federal Trade Commission and state legislators. Illinois Attorney General Lisa Madigan says such programs can leave consumers in worse financial shape. She has filed seven lawsuits against debt-settlement companies in the past year and introduced legislation to end some of the abusive practices, such as advising clients to stop payments to creditors.

Lawyers involved in unscrupulous debt-settlement activities have lost their licenses. In one high-profile case, Florida’s attorney general had accused attorney Laura Hess and her companies of victimizing tens of thousands of consumers. Hess was disbarred in 2009 for five years after she broke several rules governing the conduct of lawyers, including sharing fees with non-lawyers and sending form letters to creditors without her clients’ knowledge.

Like Hess, CCDN contracted with marketing firms to acquire customers, according to the West Virginia suit. If the lead generator convinced a consumer to pay the $4,500 upfront, it retained $2,000 and gave $2,500 to CCDN, according to company documents included in the suit. The collection of an upfront fee in selling credit services over the phone is a violation of West Virginia law, Davis said.

CCDN provided clients form letters that they could send to creditors to challenge the legitimacy of their debts, the suit said. The company also gave clients generic legal documents that they could use to assert legal defenses against debt collectors — which constitutes the unauthorized practice of law in West Virginia, Davis said.

Lock responded: “I vehemently disagree that I’ve been engaged in the unlicensed practice of law in West Virginia.”

Lock, who has been a licensed lawyer in Illinois since 1989, said he worked as an assistant state’s attorney in Cook County and a legal and policy adviser for the Illinois Commerce Commission. Lock said he started CCDN around 2006.

In a 2008 federal suit in South Carolina, Capital One sought damages from CCDN and two other companies alleging they interfered with some of its cardholders by telling them not to repay their debts. The suit accuses the defendants of forging the bank’s documents to show credit reporting agencies that the debts were settled when they were not.

Earlier this month, the judge in the case ordered CCDN to respond to Capital One’s request for discovery or he would hold the company in contempt.

Lock said he has been delayed in preparing his responses in the case because he has to replace his attorney in South Carolina, who withdrew in January.

Somebody ought to ask Lock why his SC attorney withdrew.

Did he not PAY his attorney?  Or did his attorney refuse to submit falsified documents to the court?

2 Responses to “Capital One suit and regulatory action against CCDN”

  1. I noted that you stop paying Captial One on your credit cards and did not employ a company or program to assist you. Could you give more details on what resulted? did you settle directly with the Capital One? were you sued? thanks, [contact info deleted]

  2. Capital One filed two lawsuits against me and they were dismissed.

    I just saw this old comment from March and decided to approve it now since the litigation is resolved. But I deleted the contact info because my site is not a lead generation site for scammers who will try to sell my readers crappy debt settlement etc. services.

    And I do not call readers privately. Due to the LACK of donations I simply don’t have time. At least 50 million Americans could use my help, but I don’t live off air and I limit personal services to paying clients. And I don’t even call clients. If it’s important, put it in writing. If it’s not important, save your money. Sorry!


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