Massachusetts Consumer Rights

Quat Law Offices to Provide Bankruptcy Representation

2009-09-11T10:44:00.003-04:00

Attorney Kenneth D. Quat and Quat Law Offices will now be providing bankruptcy services to consumers. This will enable the firm to provide additional services to its client base, as well as to provide "seamless" representation to those clients who can benefit from bankruptcy and from bringing an adversary proceeding in Bankruptcy Court.

Suit Filed Against Delta Management Associates

2009-09-11T10:58:00.002-04:00

A client of Quat Law Offices has filed a federal court lawsuit against Delta Management Associates of Chelsea, Massachusetts, a collection agency which handles a large volume of student loans. The suit alleges that Delta employees violated a number of provisions of federal and Massachusetts law in contacting the client's family members. It further alleges that a standard collection letter used by Delta was misleading and deceptive because it listed certain fees as being owed without identifying the nature of the fees. The complaint asks that this claim be certified as a class action.

Class Action Filed Against First Citizens Federal Credit Union

2009-09-11T10:51:00.002-04:00

Quat Law Offices has filed a class action complaint against First Citizens Federal Credit Union in Bristol County Superior Court. The suit alleges that a standard collection letter employed by First Citizens wrongfully threatened its loan customers with litigation in violation of the Massachusetts Consumer Protection Act, G.L. c. 93A, and seeks damages and injunctive relief.

"MedPay" case before Massachusetts Appeals Court

2009-06-17T16:36:00.000-04:00

The suit brought by Dianne Golchin against Liberty Mutual Insurance Company in which she is represented by Quat Law Offices and Framingham attorney Elliot Beresen is in the briefing stage before the Massachusetts Appeals Court. The case asserts that Liberty Mutual breached the terms of its auto insurance policy by failing to pay MedPay benefits for plaintiff's accident-related medical expenses because the expenses been covered by plaintiff's health insurer, and seeks class action status. Plaintiff's counsel believe that the Appeals Court will reverse the allowance of Liberty Mutual's motion to dismiss by the Worcester Superior Court.

Unfortunate truth-in-lending developments

2009-06-17T16:12:00.002-04:00

Two recent decisions by federal courts have further restricted the rights of Massachusetts consumers in connection with rescinding home mortgages under federal and state truth-in-lending statutes.

In Wells Fargo Bank v. Jaaskelainen, 2009 WL 1606522, Judge Rya Zobel of the U.S. District Court, District of Massachusetts, reversed a judgment rendered by Bankruptcy Judge William C. Hillman that the loan balance which remains following a successful rescission by a chapter 13 debtor becomes unsecured debt. Judge Zobel ruled that the debtor must "tender" back the loan balance as a condition of rescission despite the clear language of both federal and state law that upon an effective rescission the security interest becomes void. Judge Zobel did confirm, however, that on remand of the case the bankruptcy judge will have substantial discretion to determine terms of tender which would be equitable under the circumstances.

In Melfi v. WMC Mortgage Corp., the First Circuit Court of Appeals ruled that a creditor's failure to include the transaction date and rescission expiration date in the notice of right to cancel, as both federal and state law require, is not a violation which extends the right to rescind beyond the 3-business day period. The Court's rationale was essentially that a reasonably intelligent consumer is capable of ascertaining this information, and therefore the violation was not "material." This decision follows a prior ruling by the same Court in Palmer v. Champion Mortgage that an incorrect expiration date in the notice does not extend the rescission period. These decisions mean that at least with respect to contents of the right-to-cancel notice, and at least in the First Circuit, truth-in-lending is no longer truly a strict liability statute, as both Congress and the Massachusetts legislature intended.

Information for Potential Student Loan Clients

2009-05-19T13:00:00.000-04:00

At this time, Quat Law Offices is not able to assist individuals with student loan issues who live outside of Massachusetts. We suggest that such persons search for local counsel at www.naca.net.

Information for American Laser Centers Customers

2009-05-19T13:07:00.002-04:00

The only class action case of which we are aware is pending in California, which we are co-counseling with the LakeShore Law Center and Attorney Jeffrey Wilens. This case seeks refunds for ALC customers who attempted to cancel their contracts and/or had laser treatments without proper supervision. The case has not yet been certified as a class action. At present, Quat Law Offices, is available to represent Massachusetts residents who have complaints against American Laser Centers, but cannot provide assistance to residents of other states.

Credit Control Services Found Liable in Suit Challenging Collection Fees

2009-05-19T08:16:00.002-04:00

In a ruling issued March 31, 2009, the United States District Court sitting in Worcester found Credit Control Services, Inc., liable for charging a consumer a 30% collection fee before any monies had been actually collected from him. The basis of the ruling was that since the creditor did not incur a collection cost until money was recovered from the consumer, it was a violation of both the FDCPA and G.L. c. 93A for Credit Control to charge a percentage-based fee immediately upon the account being placed for collection. The plaintiff is represented by Quat Law Offices, and seeks to have the case certified as a class action.

Suit Filed Against Attorney Paul J. Coleman

2009-05-18T12:26:00.004-04:00

Quat Law Offices has filed suit against Attorney Paul Coleman (doing business as The Law Office of Paul J. Coleman) on behalf of a Massachusetts consumer who alleges he received a number of misleading phone calls and was subjected to other unlawful conduct. The case is pending in the United States District Court in Worcester, Massachusetts.

Accredited Home Lenders Files Bankruptcy

2009-05-18T12:13:00.002-04:00

Accredited Home Lenders, a mortgage company based in San Diego, recently filed for bankruptcy protection in Delaware. Accredited was involved in making sub-prime loans, and is currently a defendant in a truth-in-lending case brought by a client of Quat Law Offices. This case has been put on hold for the time being as a result of Accredited's bankruptcy filing. Other parties in the litigation are MERS, All City Financial Group, and Kevin Huther.

Protocol Recovery Services Settles Unfair Debt Collection Claims

2009-05-18T11:59:00.002-04:00

Protocol Recovery Services, a collection agency based in Georgia, recently agreed to settle unfair debt collection claims asserted by a Massachusetts consumer without the necessity of litigation. The consumer, who was represented by Quat Law Offices, alleged that Protocol committed multiple violations of the FDCPA and Mass. General Laws chapter 93A, including contacting a friend regarding the alleged debt, contacting a neighbor regarding the alleged debt, and leaving misleading phone messages.

CACH Collection Cases Dismissed

2009-05-18T11:49:00.002-04:00

Judges sitting in the Quincy and Brockton District Courts each recently dismissed collection cases brought by CACH, LLC, against clients of Quat Law Offices. CACH is a "debt-buyer" based in Denver which sues Massachusetts consumers through Cambece Law Offices. In each case CACH was unable to produce documentation at trial sufficient to establish that it owned the alleged debt or had the right to collect it.

Suit Against J.C. Christensen Proceeding

2009-03-08T11:08:00.004-04:00

Discovery is being conducted in the class action lawsuit brought by a client of Quat Law Offices against J.C. Christensen & Associates, a Minnesota-based collection agency. The case alleges that Christensen misrepresented in collection letters that consumers would be sued if they did not settle their claims or contact the agency.

FDCPA Action Filed Against Thompson& Associates

2009-03-08T11:03:00.002-04:00

A consumer represented by Attorney Kenneth D. Quat and Quat Law Offices has brought suit under the Fair Debt Collection Practices Act (FDCPA) and the Massachusetts Consumer Protection Act against the Lawrence, Mass. law firm of Thompson & Associates due to allegedly unlawful language in its standard collection letters. The complaint asserts that the letter fails to provide adequate notice of the consumer's right to dispute the debt, and also fails to clearly inform the consumer of the creditor's identity. The case is pending in the United States District Court for the District of Massachusetts, and seeks to be certified as a class action.

Kream and Kream sued over collection letters

2009-01-12T19:09:00.002-05:00

The Kream & Kream law firm of Weymouth, Massachusetts has been sued by a client of Quat Law Offices for utilizing allegedly unfair and deceptive language in standard collection letters. The suit, which is in its early stages, seeks to be certified as a class action, and asks that the Court order appropriate changes to the firm's collection letters as well as award damages to plaintiff and class members.

Settlement with Cambece granted preliminary approval

2009-01-12T19:05:00.003-05:00

Quat Law Offices, a Cambridge, Massachusetts consumer rights law firm, announces that a class action settlement reached with Cambece Law Offices and J. Anthony Cambece has been given preliminary approval by Judge Dennis Saylor of the U.S. District Court, sitting in Worcester. The Cambece law firm is a large consumer debt collection law firm, located in Danvers and Peabody, Massachusetts. The settlement provides for changes to be made to certain language used by defendants in standard collection letters, and provides compensation for class members who were sent the letters. Settlement documents will be posted shortly on the website of Quat Law Offices.

Successful rescission case on appeal

2009-01-12T19:00:00.002-05:00

Option One and Wells Fargo have appealed the ruling of the U.S. Bankruptcy Court whereby the home mortgage loan obtained by Ernest and Kathleen Jaaskelainen from Option One in 2005 was rescinded and declared to be an unsecured debt. The appeal will be heard in the first instance by Judge Rya Zobel of the U.S. District Court. Quat Law Offices represented the Jaaskelainens at trial, and is handling the appeal as well.

More suits filed over predatory loans

2009-01-12T18:52:00.004-05:00

In recent months Quat Law Offices has filed lawsuits on behalf of its clients against several mortgage lenders and servicers due to predatory and other unlawful loan practices. Defendants include Accredited Home Lenders, Washington Mutual, Deutsche Bank, Ocwen Servicing Corp., and Encore Credit Corp. Additional suits are in the process of being developed against Wachovia, American Home Loan Servicing, and Shamrock Financial Corp.

Suit filed against Sleek Medspa

2008-10-02T14:46:00.000-04:00

A client of Quat Law Offices has filed suit against Sleek Medspa, Inc., alleging that she lost a substantial amount of money due to the company's unlawful cancellation and refund policy. Sleek Medspa operates a number of locations in Massachusetts which offer laser hair removal and other cosmetic treatments.

2008-10-02T14:41:00.001-04:00

New Class Actions Filed

2008-09-10T19:51:00.000-04:00

Quat Law Offices has recently filed several class action suits on behalf of Massachusetts consumers, including:

1. Suit against Bank of America for failing to give customers notice of their right under Massachusetts law not to be contacted at work regarding overdue payments.

2. Suit against the Navy Federal Credit Union for sending collection notices which misrepresented they were the "final attempt" to collect a debt.

3. Suit against Safe Home Security of Rocky Hill, Connecticut for charging improper late fees and improperly threatening legal action.

Judge Rules That Suit Against Daniels Law Offices Can Continue

2008-09-10T13:51:00.000-04:00

A federal court judge sitting in Worcester has denied motions brought by Daniels Law Offices and Richard S. Daniels to dismiss a class action complaint brought by a client of Quat Law Offices. The suit alleges that the Daniels firm violated federal and state fair debt collection laws by imposing a 15% legal fee against consumer debtors before any actual legal work had been done, and that the imposition of such a standard fee is per se unlawful.

Harmon Law Office and Washington Mutual Sued for Wrongful Foreclosure

2008-09-10T13:48:00.000-04:00

A client of Quat Law Offices has filed suit in Middlesex Superior Court against Harmon Law Office and Washington Mutual Bank, claiming that the bank did not have proper authority to foreclose on his home because it had not yet been assigned the mortgage. The client had significant equity in the property at the time of the foreclosure sale.

Borrowers Granted Rescission of Mortgage

2008-09-10T13:43:00.000-04:00

Following a one-day trial, the United States Bankruptcy Court sitting in Boston ruled in July that Ernest and Kathleen Jaaskelainen of Attleboro were permitted to rescind a mortgage obtained from Option One Mortgage Company in 2005. The basis for the ruling was that the borrowers had not been given sufficient notices of their right to cancel the loan at the time of closing, as required by both federal and state law. The Jaaskelainens were represented by Quat Law Offices. The ruling has been appealed, but counsel is confident that it will be upheld.

Foreclosure Rescue Scams (cont'd)

2007-09-22T15:04:00.000-04:00

A settlement agreement on behalf of a number of victims of Brockton attorney Alec G. Sohmer has been submitted to the U.S. Bankruptcy Court for approval. Attorney Sohmer operated a "foreclosure rescue" scheme which resulted in the payment of substantial fees to himself and family members and which ultimately harmed many of the homeowners, some of whom lost their properties. The proposed settlement is with a number of banks and mortgage companies which financed Sohmer's activities, and does not affect claims against Sohmer himself or other responsible parties. Quat Law Offices has been representing a victim who, in fact, lost her home due to the misconduct of Sohmer.