Sued or Sanctioned

Debt Relief CEO Asks for CFPB to Back the Bus Up and Include More Defendants in Case

Written by Steve Rhode

I didn’t see this move coming but, okay.

“Defendant Jawad Nesheiwat (“Nesheiwat”) moves for an order directing the Consumer Financial Protection Bureau’s (“the Bureau”) to amend its Complaint to add necessary parties.”

“This case concerns conduct by companies and individuals in connection with providing debt-relief services to consumers with student loans. Complaint, Dkt. No. 1 ¶ 3. A mortgage company, Monster Loans, and a sham entity, Lend Tech, unlawfully obtained consumer reports from the consumer-reporting agency Experian and then provided the reports to other companies. Id. ¶ 4.

In direct-mailings and in telemarketing-sales calls, certain of these debt-relief companies made false representations to consumers that: (1) the consumers would obtain lower interest rates by consolidating their federal student loans, (2) the consumers would improve their credit scores by consolidating their loans, and (3) the United States Department of Education would become the “new servicer” on their loans.”

“Nesheiwat was the chief operating officer of Monster Loans between January 2015 and April 2017. Id. ¶ 35. Nesheiwat exercised substantial managerial responsibility for and control over Monster Loans’ business practices. Id. Nesheiwat was a limited partner in five associated companies that offered debt-relief services to consumers with student loans (the “Student Loan Debt Relief Companies”). Id. ¶ 36. He oversaw Monster Loan’s purchase of pre-screened lists from Experian for use by the Student Loan Debt Relief Companies in their direct mailings. Id. ¶ 60. Nesheiwat also exercised substantial managerial responsibility and control over one of the companies—Docu Prep Center—and participated in the marketing efforts of the other four companies.”

“The Bureau brings 11 counts against Nesheiwat, for (1) violations of the Fair Credit Reporting Act (FCRA), (2) collecting advance fees in violation of the Telemarketing Sales Rule (TSR); (3) making misrepresentations in violation of the TSR (regarding lower interest rates); (4) making misrepresentations in violation of the TSR (regarding improved credit scores); (5) making misrepresentations in violation of the TSR (regarding new servicer); (6) providing substantial assistance in violation of the TSR; (7) deception in violation of the Consumer Financial Protection Act (CFPA) (regarding lower interest rates); (8) deception in violation of the CFPA (regarding improved credit scores); (9) deception in violation of the CFPA (regarding new servicer); (10) providing substantial assistance in violation of the CFPA; (11) and for CFPA violations based on violations of the FCRA and TSR.”

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“Nesheiwat argues that the case should not proceed without Desiree Hoose (“Hoose”) and Tax Time Relief, Inc. dba Monster Tax Relief (“Monster Tax”) as defendants in this action pursuant to Rule 19(a).”

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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