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PLAINTIFF’S ORIGINAL COMPLAINT – 1
XXX9
Email
Plaintiff in pro per
IN XXX DISTRICT COURT
FOR THE NORTHERN DISTRICT OF XXX
XXX,
Plaintiff,
vs.
XXXX INC.,
Defendant
Case No.: Number
PLAINTIFF’S ORIGINAL COMPLAINT
NOW COMES XXX, Plaintiff, and files this Complaint against Consumer Portfolio
Services, Defendant, and for cause would show this Honorable Court as follows:
A. NATURE OF THE ACTION
1. This is an action brought by Plaintiff against Defendant, for the violation of
provisions of the Truth in Lending Act, the Fair Debt Collection Practices Act and the Fair
Credit Reporting Act.
2. Plaintiff avers that Defendant engaged in unethical debt practices during the
transaction that involved purchase of Plaintiff’s motor vehicle. For this cause of action and
others discussed herein, Plaintiff seeks compensation.
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PLAINTIFF’S ORIGINAL COMPLAINT – 2
3. This is not the first time Defendant has been involved in breaching the law in
regard to consumer transactions. In 2014, Defendant was ordered to pay compensation to
consumers in the sum of $5,500,000 for harassing them. In breaching laws in regard to consumer
transactions, Defendant has harassed Plaintiff in multiple ways as will be shown in this
Complaint.
B. PARTIES
4. Jalen Broussard is a male adult of sound mind and a resident of 11817 Garden
Terrace Dr., Dallas, TX 75243.
5. Consumer Portfolio Services Inc. is a company that provides financing for motor
vehicles. According to Plaintiff’s knowledge, its address is 19500 Jamboree Road, Suite 500,
Irvine, CA 92612.
C. JURISDICTION AND VENUE
6. Jurisdiction exists in this Court pursuant to 28 U.S. Code § 1332(a).
7. Venue is proper in this Court because one of the parties, Plaintiff, is a resident of
Dallas, which is located within the Northern District of Texas.
D. STATEMENT OF FACTS AND LEGAL ARGUMENT
8. Plaintiff entered into a Motor Vehicle Retail Installment Sales Contract for the
purchase of his motor vehicle, a 2013 Mercedes Benz C-Class. Exhibit 1. The seller of the motor
vehicle, Car Stop Inc., assigned its interest to Defendant.
9. Defendant unlawfully repossessed Plaintiff’s vehicle when he disputed the debt
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PLAINTIFF’S ORIGINAL COMPLAINT – 3
after realizing that the contract he had signed was fraudulent.
10. Since 2018, Defendant has violated various provisions of the law as shown in the
subsequent paragraphs of this Complaint.
11. On page 1 of the consumer credit transaction, there is an applicable law section
which provides: “Federal Law and Texas law apply to this contract.” This section declared that
U.S. Code Title 15 Chapter 41 does not apply to this transaction.
12. 15 U.S. Code § 1605(a) provides as follows: “Except as otherwise provided in
this on, the amount of the finance charge in connection with any consumer credit transaction
shall be determined as the sum of all charges, payable indirectly or indirectly by the person to
whom credit is extended, and imposed directly or indirectly by the creditor as an incident to the
extension of credit. The finance charge does not include charges of a type payable in a
comparable cash transaction. The finance charge shall not include fees and amounts imposed by
third party closing agents (including settlement agents, attorneys and escrow and title companies)
if the creditor does not require the imposition of the charges or the services provided and does
not retain the charges.” The finance charge on page 1 of the subject matter consumer credit
transaction was $7,803.27. The vehicle was essentially paid for with Plaintiff’s twenty second
payment. In the disclosure provided by Defendant, there’s a finance charge, amount financed,
total of payments, down payment and a total sale price in contravention of the foregoing
provision. All five of these number values are each in violation of 15 U.S. Code § 1605(a) and
Defendant is liable.
13. 15 U.S. Code § 1605(a) provides in part as follows: “Examples of charges which
are included in the finance charge include any of the following types of charges which are
applicable, (5) premium or other charge for any guarantee or insurance protecting
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PLAINTIFF’S ORIGINAL COMPLAINT – 4
the creditor against the obligor’s default or other credit loss.” In the transaction, Defendant
included a provision that Plaintiff must agree to keep the vehicle insured, in contravention of the
foregoing provision.
14. Page 2 of the consumer credit transaction has a liability insurance section which
states: “does not include insurance coverage for personal liability and property damage caused to
others.” This is a direct violation of 15 U.S. Code § 1605(a), § 1605(c) and § 1605(a)(5) since
that insurance ought to have been included in the finance charge.
15. Page 3 of the consumer credit transaction has a property insurance section which
states: “You must keep the collateral insured against damage or loss in the amount you owe. You
must keep this insurance until you have paid all that you owe under this contract.” This is a
direct violation of 15 U.S. Code § 1605(a), § 1605(c) and § 1605(a)(5) since that insurance ought
to have been included in the finance charge.
16. On Page 3 of the consumer credit transaction under #1a., it states that "the Finance
Charge will
be figured by applying the daily rate to unpaid portion of the Amount Financed for the number of
days the unpaid portion of the Amount Financed is outstanding. The daily rate is 1/365 th percentile
of the Annual Percentage Rate." This is completely misleading and deceptive because according to 15
USC 1605(a), the "finance charge" is "the sum of all charges".
17. Also, on Page 3 of this consumer credit transaction under #1c., it says "We base the
Finance Charge, Total of Payments, and Total Sale Price as if all payments were made as scheduled. If
you do not timely make all your payment in at least the correct amount, you will pay more Finance
Charge." This is completely misleading and deceptive because according to 15 USC 1605(a), the
"finance charge" is "the sum of all charges".
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PLAINTIFF’S ORIGINAL COMPLAINT – 5
18. On Page 4 of this consumer credit transaction under #2d., it states "You agree to have
physical damage insurance covering loss or damage to the vehicle for the term of this contact. The
insurance must cover our interest in the vehicle". This is another misleading and deceptive statement
because insurance is supposed to be included in the finance charge. Clear violation of 15 USC 1605(a),
15 USC 1605(c) and 15 USC 1605(a)(5).
19. Under 15 USC 1615(a)(1), Plaintiff is entitled to a full and prompt refund because the
finance charge was overpaid. The loan summary sheet shows a total payment of $13,767.03.
20. Pursuant to 15 USC 1640(a)(1), Defendant is civilly liable for damages suffered by
Plaintiff, the consumer and natural person, in this transaction.
21. Pursuant to 15 USC 1640(a)(2)(A)(i) Defendant is also civilly liable for double the
finance charge due to repeatedly violating 15 USC 1605.
22.
23. 15 U.S. Code § 1635 provides as follows: “Except as otherwise provided in this
section, in the case of any consumer credit transaction (including opening or increasing the credit
limit for an open end credit plan) in which a security interest, including any such interest arising
by operation of law, is or will be retained or acquired in any property which is used as the
principal dwelling of the person to whom credit is extended, the obligor shall have the right to
rescind the transaction until midnight of the third business day following the consummation of
the transaction or the delivery of the information and rescission forms required under this section
together with a statement containing the material disclosures required under this subchapter,
whichever is later, by notifying the creditor, in accordance with regulations of the Bureau, of his
intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with
regulations of the Bureau, to any obligor in a transaction subject to this section the rights of the
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PLAINTIFF’S ORIGINAL COMPLAINT – 6
obligor under this section. The creditor shall also provide, in accordance with regulations of the
Bureau, appropriate forms for the obligor to exercise his right to rescind any transaction subject
to this section.” 12 CFR § 026.15(b) also stipulates that: “In any transaction or occurrence
subject to rescission, a creditor shall deliver two copies of the notice of the right to rescind to
each consumer entitled to rescind (one copy to each if the notice is delivered in electronic form
in accordance with the consumer consent and other applicable provisions of the E-Sign Act).” As
a consumer, Plaintiff had the right to be notified of his right to rescission. Defendant failed to
clearly and conspicuously disclose Plaintiff’s right to rescind. Defendant did not avail to Plaintiff
the appropriate forms for Plaintiff to exercise his right of rescission. By failing to notify Plaintiff
of his right of rescission and failing to avail the appropriate forms to him, Defendant acted in
contravention of the foregoing provisions.
24. 15 U.S. Code § 1662 provides as follows: “No advertisement to aid, promote, or
assist directly or indirectly any extension of consumer credit may state, (2) that a specified
downpayment is required in connection with any extension of consumer credit, unless
the creditor usually and customarily arranges downpayments in that amount.” In the subject
transaction, it was advertised that Defendant would need a down-payment for Plaintiff to drive
off with the vehicle despite Plaintiff paying a down-payment of $4,000 to Car Stop Inc.
25. 15 U.S. Code 1666b(a) provides as follows: “A creditor may not treat a payment
on a credit card account under an open end consumer credit plan as late for any purpose, unless
the creditor has adopted reasonable procedures designed to ensure that each periodic statement
including the information required by section 1637(b) of this title is mailed or delivered to the
consumer not later than 21 days before the payment due date.” Defendant contravened the
foregoing provision by reporting late payments to credit reporting agencies.
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PLAINTIFF’S ORIGINAL COMPLAINT – 7
26. 15 U.S. Code § 1692e provides as follows: “A debt collector may not use any
false, deceptive, or misleading representation or means in connection with the collection of
any debt. Without limiting the general application of the foregoing, the following conduct is a
violation of this section, (4) the representation or implication that nonpayment of any debt will
result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale
of any property or wages of any person unless such action is lawful and the debt collector
or creditor intends to take such action, (14) the use of any business, company, or organization
name other than the true name of the debt collector’s business, company, or organization.”
Defendant breached the foregoing provision by unlawfully repossessing Plaintiff’s car. In doing
so, Defendant used the services of another company, American Recovery Associates, which also
alleged that Plaintiff would have to pay a storage fee for every day Plaintiff’s vehicle was in their
possession.
27. 15 U.S. Code § 1692c(a) provides as follows: “Without the prior consent of the
consumer given directly to the debt collector or the express permission of a court of competent
jurisdiction a debt collector may not communicate with a consumer in connection with collection
of any debt.” Defendant communicated with Plaintiff in regard to collection of the alleged debt
by Defendant without his prior consent.
28. 15 U.S. Code § 1692b provides as follows: “Any debt collector communicating
with any person other than the consumer for the purpose of acquiring location information about
the consumer shall (2) not state that such consumer owes any debt.” Defendant communicated
with Plaintiff and informed him that he owed a debt.
29. 15 U.S. Code § 1692b provides as follows: “Any debt collector communicating
with any person other than the consumer for the purpose of acquiring location information about
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PLAINTIFF’S ORIGINAL COMPLAINT – 8
the consumer shall (3) not communicate with any such person more than once unless requested
to do so by such person or unless the debt collector reasonably believes that the earlier response
of such person is erroneous or incomplete and that such person now has correct or complete
location information.” Defendant attempted to communicate with Plaintiff on multiple occasions.
30. 15 U.S. Code § 1692e provides as follows: “A debt collector may not use any
false, deceptive, or misleading representation or means in connection with the collection of any
debt. Without limiting the general application of the foregoing, the following conduct is a
violation of this section, (2) the false representation of the character, amount or legal status of
any debt, (10) the use of any false representation or deceptive means to collect or attempt to
collect any debt or to obtain information concerning a consumer.” Defendant misrepresented the
amount owed by Plaintiff and in doing so, used deceptive means to collect the alleged debt.
31. 15 U.S. Code 1692e provides as follows: “A debt collector may not use any false,
deceptive, or misleading representation or means in connection with the collection of any debt.
Without limiting the general application of the foregoing, the following conduct is a violation of
this section, (9) the use or distribution of any written communication which stimulates or is
falsely represented to be a document authorized, issued or approved by any court, official, or
agency of the United States or any State, or which creates a false impression as to its source,
authorization, or approval.” Defendant sent Plaintiff correspondence that stated that someone
other than Plaintiff is the creditor, when Plaintiff is the creditor.
32. 15 U.S. Code § 1692c(c) provides as follows: “If a consumer notifies a debt
collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt
collector to cease further communication with the consumer, the debt collector shall not
communicate further with the consumer with respect to such debt except (1) to advise the
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consumer that the debt collector’s further efforts are being terminated; (2) to notify the consumer
that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by
such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt
collector or creditor intends to invoke a specified remedy. If such notice from the consumer is
made by mail, notification shall be complete upon receipt.” Plaintiff notified Defendant not to
send him any more communication in regard to the alleged debt. Defendant continued to send
correspondence not in accordance with the foregoing exceptions.
33. 15 U.S. Code 1692e provides as follows: “A debt collector may not use any false,
deceptive, or misleading representation or means in connection with the collection of any debt.
Without limiting the general application of the foregoing, the following conduct is a violation of
this section, (8) communicating or threatening to communicate to any person credit information
which is known or which should be known to be false, including the failure to communicate that
a disputed debt is disputed.” Defendant threatened to communicate false information that
Plaintiff owes a debt.
34. 15 U.S. Code § 1692f provides as follows: “A debt collector may not use unfair or
unconscionable means to collect or attempt to collect any debt. Without limiting the general
application of the foregoing, the following conduct is a violation of this section, (1) the
collection of any amount (including any interest, fee, charge, or expense incidental to the
principal obligation) unless such amount is expressly authorized by the agreement creating the
debt or permitted by law.” The contract being relied upon by Defendant was not signed by
Defendant. It was only signed by Plaintiff. Defendants have no basis for collecting the alleged
debt.
35.
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36. 15 U.S. Code § 1693l provides as follows: “No writing or other agreement
between a consumer and any other person may contain any provision which constitutes a waiver
of any right conferred or cause of action created by this subchapter. Nothing in this section
prohibits, however, any writing or other agreement which grants to a consumer a more extensive
right or remedy or greater protection than contained in this subchapter or a waiver given in
settlement of a dispute or action.” The contract states that no agreement between a consumer and
another party should constitute a waiver of rights or any cause of action. The inclusion of that
provision in the contract is a contravention of 15 U.S. Code § 1693l.
37. Defendant invaded Plaintiff’s privacy by manner of intrusion on seclusion. In
Billings v. Atkinson¸489 S.W.2d 858 (1973), the Texas Supreme Court held that: “A judicially
approved definition of the right of privacy is that it is the right to be free from the unwarranted
appropriation or exploitation of one’s personality, the publicizing of one’s private affairs with
which the public has no legitimate concern, or the wrongful intrusion into one’s private activities
in such manner as to outrage or cause mental suffering, shame or humiliation to a person of
ordinary sensibilities.” The sending of unwanted correspondence to Plaintiff by Defendant
amounts to seclusion and has caused Plaintiff mental suffering and shame.
38. Tex. Penal Code Ann. § 32.51 stipulates that identity theft occurs when an
individual with the intent to harm or defraud another person obtains, possesses, transfers or uses
identifying information of another person without their consent. Defendant obtained Plaintiff’s
name, address, and social security number without his consent and used it to create an account.
39. 12 CFR § 226.15(a)(1)(i) provides for the consumer’s right of rescission as
follows: “Except as provided in paragraph (a)(1)(ii) of this section, in a credit plan in which a
security interest is or will be retained or acquired in a consumer’s principal dwelling, each
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PLAINTIFF’S ORIGINAL COMPLAINT – 11
consumer whose ownership interest is or will be subject to the security interest shall have the
right to rescind each credit extension made under the plan; the plan when the plan is opened; a
security interest when added or increased to secure an existing plan; and the increase when a
credit limit on the plan is increased.”
40. As a consumer, Plaintiff had the right to be notified of his right to rescission.
Defendant failed to send Plaintiff a notice of rescission in accordance with the above provisions.
41. Plaintiff sent multiple affidavits to Defendant highlighting provisions that
Defendant had violated but Defendant did not reply to them. Failure to send Plaintiff a notice of
rescission and failure to respond to Plaintiff’s affidavits shows bad faith on the part of
Defendant. As a remedy for the foregoing, Plaintiff prays for summary judgment.
42. As a result of Defendant actions, Plaintiff has suffered mental anguish, emotional
distress, as well as defamation of character. In that light, Plaintiff seeks compensation.
E. PRAYER FOR RELIEF
REASONS WHEREFORE, Plaintiff respectfully requests this Honorable Court to grant
him the following reliefs:
a. Judgment in Plaintiff’s favor;
b. Award Plaintiff damages for the above counts in the sum of $464,000.00;
c. Award Plaintiff damages for unlawful repossession in the sum of $100,000.00;
d. Award Plaintiff punitive damages;
e. Award Plaintiff pre and post-judgment interests, costs of this suit, and attorney fees as
allowed by law;
f. Award Plaintiff such equitable relief as may be appropriate under the circumstances; and
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g. Award Plaintiff such further relief as this Honorable Court deems necessary and proper.
Dated this ____ day of November, XXX.
Respectfully Submitted,
___________________________________
XXX
Plaintiff in pro per
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VERIFICATION
I, XXX, being duly sworn depose and say that I am the Plaintiff in the above entitled
action, that I have read the foregoing Complaint and know the contents thereof. That the same is
true of my own knowledge except as to those matters and things stated upon information and
belief, and as to those things, I believe them to be true.
_________________________________
(Sign in the presence of a Notary Public)
Sworn to and subscribed before me this the _____ day of ____________________, xx.
______________________________
Notary Public
________________________________________
(Printed name of Notary Public)
My Commission Expires: ____________________
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CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing document was sent on the (Date)
day of (Month) (Year) by regular U.S. mail, by facsimile, or certified mail, return receipt
requested, to the following parties or attorneys of record:
(Name of Defendant’s Attorney), Attorney at Law
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