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CreditAnswers Sued by Employee for Unpaid Wages

In what is looking like an ongoing wave of suits against debt settlement companies by employees for unpaid wages, the latest to be sued was Credit Answers in Texas. Other debt relief companies sued include Lloyd Ward Law Firm, ABC Debt Relief, and Credit Solutions of America.

  • Defendant is a debt settlement company doing business in Texas.
  • Plaintiff was employed by Defendant from December 2007 through March 2010. Plaintiff was a Debt Consultant.
  • During his employment with Defendant, Plaintiff routinely worked over 40 hours per week. However, Plaintiff was not paid at a rate of at least time and a half for doing so.
  • Upon information and belief, over the past three years, Defendant has employed many persons in Texas who, like Plaintiff, were Debt Consultants who worked over 40 hours per week but were not paid at a rate of at least time and a half for all hours in excess of 40 per week. Plaintiff and the other Debt Consultants worked over 40 hours per week with Defendant’s knowledge and at Defendant’s direction.
  • Neither Plaintiff nor any of the other Debt Consultants had job duties that made them “exempt” under the FLSA. For example, they did not supervise any other employees, nor did they exercise discretion with respect to matters of significance. Nevertheless, Defendant misclassified Plaintiff and the other Debt Consultants as exempt and failed to pay them at a rate of at least a time and a half for all hours worked in excess of 40 per week. Defendant willfully violated the FLSA with respect to Plaintiff and the other Debt Consultants.
  • During Plaintiff’s employment with Defendant, Defendant knew that Plaintiff routinely worked over 40 hours per week and directed Plaintiff to do so. Defendant knew that its other Debt Consultants worked over 40 hours per week, and it directed them to do so. – Source


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