On May 24, 2011 a State of Washington class action case was moved to federal court by Fast Track Debt Relief. The case, Rule v. Century Negotiations, David Leuthold, Freedom Debt Relief, Fast Track Debt Relief and Debt Shield was filed by Paul Lawrence of Pacifica Law Group in Seattle, Washington and Richard Epstein, Esq. of Greenspoon Marder. It looks like Fast Track Debt Relief is trying to extract themselves from this case.
The filing states:
“On April 22, 2011, Plaintiff filed his second amended class action complaint (“Second Amended Complaint” or “Compl.”) against Defendants in the Superior Court, State of Washington, County of Spokane, with the above caption and with case number 10-2-03220-1. Fast Track was not named as a party to the Complaint or First Amended Complaint. Fast Track became aware of the action on April 25, 2011 but was not served with the summons and Second Amended Complaint until May 12, 2011. The one-count Second Amended Complaint arises out of Plaintiff’s alleged purchase of debt resolution services from certain Defendants and which payment of fees for such services allegedly exceeded those permitted by Washington law. More specifically, Plaintiff alleges claims against all Defendants for violations of Washington’s Consumer Protection Act. Plaintiff likewise seeks injunctive relief, class certification, and damages that include voiding the agreements between the parties, actual and exemplary damages, prejudgment interest, costs and attorneys’ fees.” – Source
Below are statements disclosed in the documents. You can read the full documents through the source links.
- Century Negotiations disclosed in a four year period prior to filing the lawsuit, it had collected approximately $891,432 from its Washington clients. Should the Plaintiff prevail in this case and tripple damages under Washington law CNI will be responsible for $2,674,296.
- On average, the clients Fast Track Debt Relief enrolled in the CNI program, Fast Track Debt Relief received 50% of the fee from Washington clients.
- If sales affiliates took 50% of the fee then it is alleged CNI took twice as much from Washington residents and so damages would climb to $5,348,592.
- Statement by Robert Linzer, the principal of Fast Track Debt Relief that Fast Track Debt Relief received on average 50% of the total fees paid by their Washington clients. – Source
- Century Negotiations answers interrogatories. – Source
- A copy of the suit filed by Darrell Scott of the Scott Law Group against CNI on August 3, 2010 and David Leuthold on September 16, 2010. Also included is a copy of the amended class action complaint in which it says, “Defendant Leuthold is a prominent force in the debt adjusting/settlement industry in the United States. At all times material to allegations made in this Complaint, Leuthold was acting as Chief Executive Officer of Century Negotiations, Inc. and was the Executive Director of The Association of Settlement Companies (“TASC”)…” The case attempts to bring CNI in as a debt adjuster. In a similar case against Global Client Solutions the State of Washington Supreme Court ruled the underlying servicing company was subject to state debt adjuster statutes. – Source
- CNI answers the amended complaint. Motion to compel arbitration. CNI debt negotiation agreement. – Source
- More information on motion to stay proceeding, Washington Supreme Court, more of the client agreement. – Source
- More about the material presented to the State of Washington Supreme Court in the Carlsen v. Freedom Debt Relief case. – Source
- More of the same stuff. – Source
- Odd document. The attorney for Fast Track Debt Relief files a notice of removal and then identifies himself as the attorney for Legal Helpers Debt Resolution. Is Fast Track Debt Relief really Legal Helpers Debt Resolution? – Source
- Civil coversheet. – Source
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