Northstar Mortage pursues collection after bankruptcy discharge

On March 18, 2013, a lawsuit was filed by James Dooley under the Fair Debt Collection Practices Act and the Florida Consumer Collection Practices Act in United States District Court, Orlando, Florida, alleging that Dooley had a mortgage with Bank of America which eventually went into default. In August of 2011, Mr. Dooley filed for bankruptcy and received a discharge in January of 2012. The mortgage with Bank of America was listed on the bankruptcy schedules. Notwithstanding the discharge of the note, Nationstar Mortgage continued collection activities against Mr. Dooley attempting to collect the discharged debt.

In an unrelated case, another lawsuit was filed in April of 2013 also under the Fair Debt Collection Practices Act and the Florida Consumer Collection Practices Act in United States District Court, Orlando, Florida, alleges that consumers took out a mortgage with MorEquity. In August of 2010, consumers filed for bankruptcy and received a discharge in November of 2010. The mortgage with MorEquity was listed on the bankruptcy schedules. Notwithstanding the discharge of the note, Nationstar Mortgage continued aggressive collection activities against the consumers including collection calls and collection letters attempting to collect the discharged debt.

Both the Fair Debt Collection Practices Act and Florida Consumer Collection Practices Act make it unlawful for any person, in attempting to collect a debt, to: "Claim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate, or assert the existence of some other legal right when such person knows that the right does not exist."

Plaintiffs in both lawsuits are seeking statutory and emotional damages against Nationstar Mortgage, LLC and have demanded a trial by jury.

[The allegations in the Fair Debt Collection Practices Act lawsuit described in this article the plaintiff’s version of the facts and must be proven with competent evidence. Moreover, these allegations may be denied or disproven by the defendants.]