Las Vegas, NV: A foreclosure class action lawsuit has been filed on behalf of 16 Nevadans against five companies hired by banks and lenders to handle the foreclosures on properties owned by the plaintiffs and one additional defendant who purchased property through the foreclosure process.
The lawsuit claims illegal debt collection activities and deceptive trade practices by the defendants against the plaintiffs during the foreclosure process as the defendants were not licensed or registered in the State of Nevada to carry out the foreclosure process.
The plaintiffs are Nevadans who not only lost their houses in one of the hardest hit real estate markets, but were also adversely affected by foreclosure companies that did not follow the law during the foreclosure process.
The lawsuit names as defendants: Quality Loan Service Corporation; Appleton Properties, LLC; MTC Financial, Inc. dba Trustee Corps; Meridian Foreclosure Service dba MTDS, Inc. dba Meridian Trust Deed Service; National Default Servicing Corporation; and California Reconveyance Company.
The lawsuit seeks to compensate the plaintiffs and compel the defendants to surrender all fees collected for many thousands of foreclosures during the time they were operating illegally. The case was filed as a class action lawsuit because there are thousands of potential plaintiffs who were victims of these foreclosure companies.
The lawsuit alleges that the debt collection activities of the defendants are and/or were illegal and improper because each of the defendants did not hold a license to engage in debt collection activities in the State of Nevada and each also failed to register as a foreign debt collection agency with the Nevada Financial Institutions Division.
The illegal and improper debt collection activities include the issuance of debt-related notices, demands, collection communications and/or foreclosure sales and processes. In addition, the plaintiffs also claim deceptive trade practices, consumer fraud, unjust enrichment, trespass, quiet title and in two instances, elder abuse.
Plaintiffs are asking for compensatory and consequential damages in excess to $10,000, disgorgement of any amounts paid to defendants for their respective illegal and improper debt collection activities, attorney's fees and injunctive relief.