Guardian Credit Union Attempted to Collect Discharged Auto Loan Debt, Consumer Alleges

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Guardian Credit Union is the defendant in a proposed class action in which the plaintiff claims the company attempted to collect a debt that had been discharged through bankruptcy in 2015. According to the lawsuit, Guardian’s alleged conduct has the effect of deceiving consumers into making payment on old debts, thereby resurrecting those that have been discharged in bankruptcy proceedings.

The case states the plaintiff’s auto loan account fell into default sometime in 2014. In October 2015, Guardian reportedly sued the plaintiff in small claims court in an attempt to collect on the obligation. In December 2015, the plaintiff filed a chapter seven bankruptcy petition, on which the case says the man listed his Guardian Credit Union account valued at more than $5,500.

“Despite the pendency of the bankruptcy case,” the lawsuit says, “Guardian allowed the small claims court to enter default judgment against [the plaintiff] and in favor of Guardian on January 22, 2016.”

The plaintiff’s debt was discharged the following April, the suit continues. The complaint then claims the plaintiff received a statement from Guardian in July 2017, and subsequent statements in October 2017 and January 2018, concerning the defaulted debt in which the company allegedly misrepresented that the plaintiff owed $4,970.64.