BAKER V. FAMILY CREDIT COUNSELING CORPORATION SETTLEMENT - CIVIL ACTION NO. 04-CV-5508-JD
Plaintiffs filed a class action lawsuit against defendants (FAMILY CREDIT COUNSELING CORPORATION) on November 23, 2004 in the United States District Court for the Eastern District of Pennsylvania captioned Baker v. Family Credit Counseling Corporation, et al., No. 04-CV-5508 (the "Lawsuit").
Plaintiffs alleged that defendants (FAMILY CREDIT COUNSELING CORPORATION), among other things, violated the Racketeer Influenced and Corrupt Organizations Act ("RICO") and the Credit Repair Organization Act ("CROA") and sought certification of a nationwide class of all persons similarly situated.
FAMILY CREDIT COUNSELING CORPORATION the Defendants, have at all times denied, and continue to deny, that they committed any wrongful acts or violations of law of any nature whatsoever or that they have liability to the plaintiffs or the putative class.
Defendants provided to plaintiffs certain statements, including statements reflecting the ability of FCCC, DSF and CDME to pay any judgement as of December 2006 and defendants represent, to the best of their knowledge, that said financial statements are true and accurate.
Substantial uncertainty exists as to the potential liability of (FAMILY CREDIT COUNSELING CORPORATION), defendants in the Lawsuit and as to the nature and amount of relief, if any, to which plaintiffs and the members of the putative class may be entitled if liability is established, and the possibility for protracted litigation represents a great expense to defendants and to plaintiffs, including the time and costs of appellate litigation.
The lawsuit, known as Baker et al. v. Family Credit Counseling Corporation, et al., No. 04-CV-5508, filed in the United States District Court for the Eastern District of Pennsylvania, claims that Family Credit Counseling Corporation (“FCCC”), Debt Solutions Foundation, Inc. (“DSF”), James R. Armstrong, Jr., Igor M. Gelman, FCCC Services, Inc., JRA Property & Land Management, LLC, Top Financial Sales & Marketing, Inc., Consumer Financial Marketing, Inc., Consumer Debt Management & Education, Inc. (“CDME”) and Vegga Corporation (collectively “Defendants”) failed to properly represent the terms of, and implement, debt management plans in violation of their agreements and/or the law, including the Racketeer Influenced and Corrupt Organizations Act and the Credit Repair
Organization Act (“CROA ”).
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