Nicholas Financial Sued for Violating Debt Collection Laws
Nicholas Financial agreed to a $750,000 settlement for violating consumer rights during car repossession. If the company sent you a presale notice or post-sale explanation between April 2015 and December 2022, you might qualify for compensation and debt forgiveness. You don't need to take action to receive benefits, but accepting the settlement prevents you from suing separately.
Answer Your LawsuitDebt collectors must follow the law when collecting debts. Nicholas Financial, a consumer finance company, recently faced a class-action lawsuit. The company violated debt collection laws while collecting car loans.
You might be owed part of the settlement money. If Nicholas Financial administered your car loan, you could qualify for compensation.
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Respond to Your LawsuitAbout Nicholas Financial
Nicholas Financial is a consumer finance company in business for 39 years. The company headquarters are at 2454 N McMullen Booth Rd, Clearwater, FL 33759.
You can reach them at (727) 726-0763. Customer reviews tell a troubling story about the company’s practices.
Many consumers reported problems after Nicholas Financial sold their loans. Some borrowers never received car titles after paying off loans. Others faced aggressive collection tactics at their homes.
The Lawsuit Against Nicholas Financial
Nicholas Financial, Inc. v. Jeremiah T. Gross was filed in Clay County, Missouri. The lawsuit claimed the company failed to provide proper notice before repossessing vehicles.
The company also failed to provide adequate explanations after selling repossessed cars. These actions violated consumer protection laws designed to safeguard your rights.
Our partner Solo helps consumers respond when creditors violate their rights. You deserve fair treatment when dealing with any debt collector.
Who Qualifies for the Settlement?
You might benefit if you received a presale notice or post-sale explanation. The dates must fall between April 1, 2015, and December 1, 2022.
You’re excluded from the settlement if any of these apply:
- You filed bankruptcy after the car resale and received a discharge
- Nicholas Financial sold your loan before February 21, 2024
- Nicholas Financial obtained a deficiency judgment against you
You don’t need to do anything to receive settlement benefits. However, accepting the settlement means giving up your right to sue separately.
Settlement Details and Benefits
Nicholas Financial agreed to pay $750,000 to avoid trial. The company did not admit wrongdoing but agreed to compensate affected consumers.
Eligible class members receive multiple benefits:
- A portion of the $750,000 settlement fund
- Deficiency balance write-offs totaling $86.1 million
- Deletion of negative credit report marks from deficiency balances
The exact payment amount per person isn’t yet available. Visit the class-action settlement website for updates on compensation amounts.
Options If You Don’t Qualify for the Settlement
You still have options if you owe Nicholas Financial money. Many creditors will work with you if you explain your situation.
Contact them before missing a payment whenever possible. If you’ve already missed payments, reach out immediately.
Negotiating With Your Creditor
George financed his car through Nicholas Financial without payment issues. He recently lost his job but expects to find work soon.
He called Nicholas Financial to explain his temporary hardship. The company agreed to let him skip two monthly payments. George can now focus on finding work without fearing repossession.
Nicholas Financial is an original creditor, not a debt collector. The Fair Debt Collection Practices Act (FDCPA) doesn’t fully apply to them.
You can’t demand debt validation like you would with collectors. Original creditors have different legal obligations than third-party collection agencies.
Understanding Your Rights Against Creditors
Big companies sometimes believe they can ignore consumer rights. The Nicholas Financial settlement proves consumers can hold creditors accountable.
You have recourse if Nicholas Financial repossessed your car improperly. Even if you don’t qualify for this settlement, watch for other suits.
Other creditors and collectors might face similar lawsuits. Staying informed protects your financial interests and legal rights.
When Creditors Sue You
Creditors can file lawsuits when you default on debts. You must respond to any lawsuit to protect your rights.
Our partner Solo helps you respond to debt collection lawsuits. Fighting back prevents automatic judgments against you.
Ignoring a lawsuit leads to wage garnishment and bank levies. You have the right to answer every lawsuit filed against you.
Protecting Yourself From Illegal Collection Tactics
Know your rights when dealing with any creditor or collector. Federal law prohibits harassment, false statements, and unfair practices.
Document all communications with creditors and collectors. Keep records of letters, phone calls, and payment arrangements.
Report violations to the Consumer Financial Protection Bureau immediately. You can also file complaints with your state attorney general’s office.