Vedra Wali LLC Settles Consumer Class Action

Posted by on Jan 26, 2016 in Blog | 3 comments

Vedra Wali LLC Settles Consumer Class Action

On December 22, 2015, the District Court for the District of Colorado approved a final class action settlement agreement with debt collection law firm Machol & Johanness. Alfred Trujillo, on behalf of a class of student loan borrowers, sued the law firm for adding attorney fees to already large student loan balances. The lawsuit alleged that the student loan credit agreements were governed by Ohio law. Under Ohio law, debt collectors are not permitted to add attorney fees to consumer debts. By adding attorney fees, the lawsuit alleged that the law firm used false, deceptive, and misleading representations to collect a debt, in violation of 15 U.S.C. § 1692e, and used unfair and unconscionable means to collect a debt, in violation of 15 U.S.C. § 1692f.

As part of the settlement agreement, the law firm agreed to pay near the maximum statutory penalty to the class, and agreed to file a partial satisfaction of judgment for any consumer against whom the law firm had obtained a judgment and sought attorney fees. This reduces the amount owed for all consumers where the law firm obtained a judgment for attorney fees contrary to Ohio law, as alleged in the complaint.

Vedra Wali LLC worked with Robert Murphy of the Law Office of Robert Murphy to obtain the settlement.

Vedra Wali LLC is a consumer protection law firm. Dan Vedra and Ahson Wali represent individuals who are sued, harassed, and mistreated by debt collectors, banks, and businesses.

3 Comments

  1. Angie O

    Well done.

  2. Adam Arellano

    Congrats.

  3. Renee King

    Good Job~

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