By OptioWPAdmin
July 29, 2016

Home Owners Flip Debt Collections on their Banks

In an act of debt collections role reversal, two homeowners exercised their rights as property owners by ordering a levy on their banks to recover legal fees. Yes, that’s correct. For the residents, it wasn’t Bank of America or Wells Fargo who would be collecting on them — despite repeated attempts by those institutions — but the residents who initiated a sale on the two financial goliaths for attempting to make invalid collections.

In contrast, Optio Solutions is committed to fulfilling the highest level of client satisfaction while maintaining a legal and ethical code of conduct and treating consumers with respect.

Despite foreclosed homes trending downward in recent years, the following people’s homes were in motion to be foreclosed on by Bank of America and Wells Fargo, that is until they flipped the case around and attempted to “foreclose” on the banks.

Debt Collections: Florida Couple vs. Bank of America

A Florida couple, Warren and Maureen Nyerges, bought their house outright in cash and a year later began to receive notices and phones calls from Bank of America notifying them that they would be foreclosing on their house. Knowing that the foreclosure attempts were incorrect, the Nyerges hired an attorney to take the bank to court.

In a rather ironic turn of events, the couple initiated a sale on the bank in an attempt to seize the bank of its assets valuing the $2500 they were due for inconvenience and court fees. A judge ruled in favor of the Nyerges.

After failing to comply, B of A was found to be in contempt of the court by not paying the couple upon the judge’s order. Additionally, the bank didn’t follow through with written notices or attempt any effort to resolve the miscommunication by mail, on the phone or in-person.

When the Nyerges, their attorney, two repossession consultants, and the local sheriff showed up at the bank to confiscate items from cash in the drawers to filing cabinets, the bank manager cut the couple a check within the hour.

Debt Collections: Pennsylvania Man vs. Wells Fargo

A homeowner began foreclosure proceedings on his local Wells Fargo office in Pennsylvania after being told that he must take out a $1 million homeowner’s policy. Knowing that the order was wrong and that his 100-year-old Victorian house was paid off and far below market value of one million dollars at the time, Mr. Rodgers addressed the concerns through a detailed letter and took the bank to court.

Mr. Rodgers claimed “a pattern or practice of noncompliance” upon sending four letters and not receiving any response, as is required by law. Like the other case, a Penn judge ruled in favor of Rogers. Consequently, Wells Fargo was held in contempt of court for not paying the plaintiff the $1,173 he was promised in court.

Empowering Consumers and Preventing Non-Compliance

As collectors, we know that the news of a consumer’s account defaulting may cause them to react emotionally or even respond in anger. Empowering individuals and providing a suitable space for them to practice their rights is just as important as the collections attempt itself. Should a consumer find a discrepancy with their collections claim, it is their right to research, obtain legal counsel and resolve the issue with the collections agency.

Institutions involved in collections would be well served by contacting Optio first. We proudly employ certified collection professionals that have undergone ACA compliance training and examination and received CCCP designation. We take every measure to ensure that the collection experience is as pleasant as possible and help consumers come to an agreement that they and our clients feel comfortable with. Discover the difference our collections professionals can make for your company by requesting a free consultation today.

 

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