Amos v. Advanced Funding, Inc.

No. 1:04-CV-2911 (N.D. Ga. filed, Oct. 5, 2004) ; Clearinghouse Number: 55787

Description

Disabled and Retired Veterans Challenge High-Interest Loans Secured by Military Benefits

Abstract

Plaintiffs—disabled military veterans or retired enlisted military veterans—challenge defendant creditors’ high-interest loans secured by military retirement and disability benefits. Defendants advertised through nationally distributed Armed Forces newspapers. To plaintiffs they extended credit using standardized form contracts. Although defendants described their business as the “purchase” of veterans’ right to receive their military benefits, plaintiffs contend that the transactions were loans. Plaintiffs claim that defendants failed to give clear, accurate, and material disclosures—amounts financed, interest rates, total of payments, payment schedule, and finance charges—that the Truth-in-Lending Act and Federal Reserve Board Regulation Z require. They allege that defendants structured their loans as assignments of plaintiffs’ right to receive their military pension or disability benefits and that such assignments violate the antiassignment provisions of 37 U.S.C. § 701(c) and 38 U.S.C. § 5301(a)(1) and (a)(3)(C) and are void. They contend that defendants’ purchase agreements illegally attempt to bind borrowers’ heirs and waive defenses and illegally threaten borrowers with criminal fines and imprisonment for failure to repay the loan. Plaintiffs seek class certification, statutory damages, declaratory and injunctive relief, disgorgement, rescission, restitution, and attorney fees and costs.

Additional Information

Attorney Information
Plaintiffs represented by Roy E. Barnes, John F. Salter, Jennifer Auer Jordan, The Barnes Law Group, P.O. Box 489, Marietta, GA 30061 (770.419.8505); Lynn Drysdale, Jacksonville Area Legal Aid, W. Adams St., Jacksonville, FL 32202 (904.356.8371); M. Scott Barrett, Barrett and Associates, P.O. Box 5233 (47407-5233), 520 N. Walnut St., Bloomington, IN 47407 (812.334.2600); Stuart Rossman, National Consumer Law Center, 77 Summer St., 10th Flr., Boston, MA 02110 (617.542.8010)
Docket Date
2004-10-05 00:00:00+00:00

Files

Filed under: