Back in May the Consumer Financial Protection Bureau (CFPB) entered a stipulated final judgment and order against Defendant Chou Team Realty, LLC, Defendants and Relief Defendants Thomas Chou and Sean Cowell, and Relief Defendants TDK Enterprises, LLC and Cre8labs, Inc., which resolved the Bureau’s claims against them. On July 7, 2020, the Court entered a stipulated final judgment and order
against Defendant Robert Hoose, which resolved the Bureau’s claims against him.
But the rest of the Defendants, in this case, have just been hit with a newly amended lawsuit. I wonder if they now wonder if they should have gotten out while the getting was good?
So it looks like the remaining cast of characters is Monster Loans, MonsterLoans; Lend Tech Loans, Docu Prep Center, Certified Document Center, Document Preparation Services, DocuPrep Center, Certified Document Center, Certified Doc Prep, Certified Doc Prep Services, Assure Direct Services, Assure Direct Services, Direct Document Solutions, Secure Preparation Services, Docs Done Right, Bilal Abdelfattah, Belal Abdelfattah, Bill Abdel, Eduardo Martinez, Ed Martinez, Jawad Nesheiwat, Frank, Anthony Sebreros; David Sklar, Kenneth Lawson, and XO Media.
In this amended complaint the CFPB the states, “Between 2015 and 2017, a mortgage company known as Monster Loans unlawfully obtained consumer reports from the consumer-reporting agency Experian. Monster Loans provided the reports to other companies that used the reports to market debt-relief services to consumers with student loans.
From August 2017 through at least January 2019, a sham entity known as Lend Tech also unlawfully obtained consumer reports from Experian and provided them to other companies, including companies that used the lists to market student-loan debt-relief services.
In direct-mailings and in telemarketing-sales calls, certain of these debt-relief companies represented 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 (ED) would become the “new servicer” on their loans. All of this was false.”
One of the pillars of this suit appears to be a practice other debt relief companies have participated in to get leads.
In this case the CFPB states, “Monster Loans and Lend Tech have purchased from Experian prescreened consumer reports (also known as “prescreened lists”) that contained information regarding consumers with student loans, including consumers’ names, addresses, number of student loans, and aggregate student loan balances.
In 2015, Monster Loans applied for and received an account with Experian, which enabled it to purchase prescreened lists.
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In its application, Monster Loans certified to Experian that it would use prescreened lists to make firm offers of credit for mortgage loans.
During and after the enrollment process, Monster Loans also represented to Experian that it would use prescreened lists to market its mortgage products.
Monster Loans did not disclose to Experian that prescreened lists would be provided to other companies and used to market debt-relief services.
Between at least December 2015 and May 2017, Monster Loans primarily used its account with Experian to obtain prescreened lists for use by other companies that marketed student-loan debt-relief services, including the Student Loan Debt Relief Companies.
In total, Monster Loans purchased prescreened lists containing information about more than 7 million consumers with student loans.
The prescreened lists that Monster Loans purchased were used to market debt-relief services, and not to make firm offers of credit or insurance.”
You can read the full second amended complaint below. I guess the CFPB is still in the hunt. Game on!