Northwood Asset Management Group, LLC is the defendant in a Virginia consumer’s proposed class action in which the man claims the company made “false and misleading” representations concerning his debt, as well as collected on loans considered to be invalid under state law.
The complaint says the plaintiff in December 2011 received a usurious payday loan from a company that ultimately transferred the obligation to CashCall, Inc. This loan itself, the lawsuit argues, was voidab initio, or from the start, under Virginia law. Moreover, CashCall’s loan origination and servicing practices were the subject ofHayes v. Delbert Servs. Corp., a case in which CashCall reportedly “sought to avoid liability” for their supposed state and federal law violations by clinging to user arbitration agreements. When the dust settled, so did the lawsuit; the involved parties agreed to a monetary settlement and CashCall agreed to “adjust to zero all the outstanding debts” that were in its possession.
The plaintiff’s original loan from CashCall was for $2,600 with an APR of 135 percent and $551 in fees, the lawsuit says. CashCall allegedly received more than $9,000 in payments from the plaintiff before selling off the man’s loan to the defendant, who the case says began its collection activities in March 2015. According to the complaint, the defendant withdrew funds from the plaintiff’s bank account on no fewer than 16 occasions.
“It appears that Northwood was hastily attempting to collect on [the plaintiff’s] invalid loan following the preliminary approval of a settlement that required the original creditor to provide notice of the settlement to [the plaintiff],” the complaint reads.