UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY › Document... · Page 1 of 26 Yongmoon Kim...

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Yongmoon Kim KIM LAW FIRM LLC 411 Hackensack Avenue 2nd Floor Hackensack, New Jersey 07601 Tel. & Fax (201) 273-7117 [email protected] Attorneys for Plaintiff and the Proposed Class

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

VICTORIA LOPEZ, on behalf of herself and those similarly situated, Plaintiff, vs. FALONI & ASSOCIATES, L.L.C. a/k/a LAW OFFICES OF FALONI & ASSOCIATES, LLC; DAVID A. FALONI, SR.; DAVID A. FALONI, JR.; LVNV FUNDING LLC; SHERMAN ORIGINATOR, LLC; RESURGENT CAPITAL SERVICES, L.P.; ALEGIS GROUP, LLC and JOHN DOES 1 to 10, Defendants.

Civil Action No. 2:16-cv-01117-SDW-SCM

FIRST AMENDED CLASS ACTION COMPLAINT

Plaintiff, Victoria Lopez, by way of First Amended Class Action Complaint against

Defendants, Faloni & Associates, L.L.C. a/k/a Law Offices of Faloni & Associates, LLC; David

A. Faloni, Sr.; David A. Faloni, Jr.; LVNV Funding LLC; Sherman Originator, LLC; Resurgent

Capital Services, L.P.; Alegis Group, LLC and John Does 1 to 10 says:

I. NATURE OF THE ACTION

1. This class action for statutory damages arises from the Defendants’ violations of

the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq.

Case 2:16-cv-01117-SDW-SCM Document 19 Filed 04/27/16 Page 1 of 26 PageID: 99

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2. As described more fully below, Defendants violated the FDCPA by filing debt

collection complaints in state court against Plaintiff and other New Jersey consumers when no

attorney had reviewed the file and documents relating to the account in question and when no

attorney had first exercised professional judgment by independently evaluating and determining

that the collection demands and proceedings to enforce collection and filing suit were warranted.

“[A] signed complaint is inherently false and misleading, in violation of 15 U.S.C. 1692e, where,

at the time of signing, the attorney signing it has not 1) drafted, or carefully reviewed, the

complaint; and 2) conducted an inquiry, reasonable under the circumstances, sufficient to form a

good faith belief that the claims and legal contentions in the complaint are supported by fact and

warranted by law.”1 Since a New Jersey law firm is required to conduct such due diligence,

filing a complaint created the impression that meaningful attorney involvement had taken place

when it had not, which is in violation of the FDCPA.

3. Defendants further violated the FDCPA by attempting to collect consumer debts

without a license to do so under the New Jersey Consumer Finance Licensing Act, by attempting

to collect amounts not permitted by law or contract and by misstating the amount due.

II. JURISDICTION AND VENUE

4. This Court has jurisdiction to entertain this matter pursuant to 15 U.S.C. §

1692k(d) and 28 U.S.C. § 1331.

1 Bock v. Pressler & Pressler, LLP, 30 F. Supp. 3d 283, 303-4 (D.N.J. 2014); see also Lesher v. Law Offices of Mitchell N. Kay, PC, 650 F.3d 993, 1003 (3rd Cir. 2011) (“A collection letter sent on law firm letterhead when no attorney had reviewed the circumstances of the account in question is false, deceptive, and misleading because it “falsely impl[ies] [to the least sophisticated debtor] that an attorney, acting as an attorney, is involved in collection [the] debt.”); Gonzalez v. Kay, 577 F.3d 600, 602 (5th Cir. 2009) (“It “pretend[s] to be a law firm with a lawyer handling collection of the Account when in fact no lawyer was handling the Account or actively handling the file.”).


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5. Venue in this action properly lies in the District Court of New Jersey, Newark

Vicinage, as Defendants regularly do business in this district.

III. PARTIES

6. Plaintiff Victoria Lopez (“Plaintiff” or “Lopez”) is a natural person residing in

Paterson, New Jersey in Passaic County.

7. Defendant Faloni & Associates, L.L.C. a/k/a Law Offices of Faloni & Associates,

LLC (“Faloni” or “Faloni & Associates”) is a collection law firm with an office located at 165

Passaic Avenue, Suite 301B, Fairfield, New Jersey 07004.

8. Defendant David A. Faloni, Sr. is an attorney-at-law of the State of New Jersey

engaged in the practice of law as a principal attorney and managing member of Faloni &

Associates.

9. Defendant David A. Faloni, Jr. an attorney-at-law of the State of New Jersey

engaged in the practice of law as a principal attorney and managing member of Faloni &

Associates.

10. Defendant LVNV Funding LLC (“LVNV”) is a Delaware limited liability

company with its principal place of business located at 625 Pilot Road, Suite 3, Las Vegas,

Nevada 89119.

11. Defendant Sherman Originator, LLC (“Sherman”) is a Delaware limited liability

company. LVNV is 100% owned by Sherman.

12. Defendant Resurgent Capital Services, L.P. (“Resurgent”) is a Delaware limited

partnership with its principal place of business located at 55 Beattie Place, Suite 300, Greenville,

South Carolina 29601.


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13. Defendant Alegis Group, LLC (“Alegis”) is a Delaware limited liability company

with its principal place of business located at 55 Beattie Place, Suite 300, Greenville, South

Carolina 29601. Alegis is the sole general partner of Resurgent.

14. The Plaintiff is informed and believes, and on that basis alleges, that Defendants

John Does 1 to 10 are natural persons and/or business entities all of whom reside or are located

within the United States and personally created, instituted and, with knowledge that such

practices were contrary to law, acted consistent with and oversaw policies and procedures used

by the employees of Defendants that are the subject of this Complaint. Those Defendants

personally control the illegal acts, policies, and practices utilized by Defendants and, therefore,

are personally liable for all of the wrongdoing alleged in this Complaint

15. In this pleading, “Defendants” in the plural refers to all Defendants.

IV. FACTS

16. Defendants are not in the business of extending credit, selling goods or services to

consumers.

17. Defendants regularly collect or attempt to collect past-due and defaulted debts of

natural persons allegedly owed to others which were incurred primarily for personal, family or

household purposes.

18. The principal purpose of Defendants are the collection of debts.

19. When attempting to collect debts, Defendants use the mails, telephone, the

internet and other instruments of interstate commerce

20. LVNV is a debt buyer which purchases past-due and defaulted consumer accounts

for pennies on the dollar, and then attempts to collect those accounts itself or through other

collection agencies or debt collectors.


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21. In connection with LVNV’s efforts to collect consumer debts, LVNV routinely

hires other debt collectors or collection attorneys, such as Faloni & Associates, to file collection

lawsuits against consumers in an effort to collect the consumer debts.

22. Defendants file thousands if not tens of thousands of collection lawsuits in the

State of New Jersey, clogging the State Court’s docket, wasting judicial resources and harassing

New Jersey consumers. In fact, according to the New Jersey Superior Court Automated Case

Management System (“ACMS”) and statistics derived from LexisNexis® searches, LVNV has

filed over 80,000 debt collection complaints within the past decade and over 2,500 complaints in

2015 alone.

23. Plaintiff incorporates and adopts by reference the Statement of Facts filed as ECF

No. 69 in Randall v. Nelson & Kennard et al, 2:09-cv-00387 (D. Ariz., filed Aug. 9, 2010)

(attached as Exhibit A).

24. Notwithstanding the substantial volume of collection activity in which it engages,

LVNV claims that it has no employees.2 LVNV does not have audited financial statements and

does not file tax returns.3

25. All actions taken in the name of LVNV are in fact taken by Resurgent, pursuant to

a written agreement and power of attorney that LVNV has executed in favor of Resurgent.4

26. LVNV has stated on its website, www.lvnvfunding.com (last visited Feb. 25,

2016), that:

The management of purchased assets is outsourced to a third-party specializing in the management of these types of consumer assets, Resurgent Capital Services LP (Resurgent). Resurgent is a manager and servicer of domestic and international consumer debt

2 See Exhibit A. 3 Godson v. Eltman, Eltman & Cooper, PC., No. 11-CV-0764S(Sr), 2016 U.S. Dist. LEXIS 51010, at *6 (W.D.N.Y. Apr. 15, 2016). 4 See Exhibit A.


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portfolios for credit grantors and debt buyers, including LVNV, and performs these services on their behalf. Resurgent, a licensed debt collector, may perform these activities directly, or in most cases, will outsource the recovery activities to other, independent, specialized, licensed collection agencies. If you are a customer, please direct your inquiries to the firm currently servicing your account.

27. Resurgent and LVNV are under common ownership and management; both are

part of the Sherman Financial Group, LLC.

28. Sherman is the parent corporation of LVNV and Sherman Financial Group, LLC,

is the grandparent corporation of LVNV.5

29. Resurgent directs the collection activity complained of herein even though it was

undertaken in LVNV’s name.

30. Defendants have asserted that Plaintiff incurred or owed a certain financial

obligation arising from accounts originating from Credit One Bank, N.A. (“Debt” or “Account”).

31. The Debts arose from one or more transactions which were primarily for the

respective Plaintiff’ personal, family, or household purposes.

32. The debts alleged to be owed by Plaintiff and those similarly situated were

incurred for personal, family or household purposes.

33. Defendants contend that the Account was past-due and in default.

34. The Account was past-due and in default when it was purchased by LVNV,

Sherman, Resurgent and Alegis for pennies on the dollar.

35. After purchasing the past-due and defaulted Account for pennies on the dollar,

LVNV, either directly or through intermediate transactions, assigned, placed, or transferred the

Account with Faloni & Associates for collection.

5 Godson, 2016 U.S. Dist. LEXIS 51010, at *6-7.


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36. Faloni & Associates is a collection law firm.

37. David A. Faloni, Sr. is licensed to practice law in the State of New Jersey and, in

that regard, is a principal owner, officer, director, shareholder, and/or managing partner of Faloni

& Associates.

38. David A. Faloni, Sr. personally implemented, and with knowledge such practices

were contrary to law, engaged in, acted consistent with, managed, and oversaw all of the illegal

policies and procedures used by himself and other employees of Faloni & Associates complained

of herein.

39. David A. Faloni, Jr. is licensed to practice law in the State of New Jersey and, in

that regard, is a principal owner, officer, director, shareholder, and/or managing partner of Faloni

& Associates.

40. David A. Faloni, Jr. personally implemented, and with knowledge such practices

were contrary to law, engaged in, acted consistent with, managed, and oversaw all of the illegal

policies and procedures used by himself and other employees of Faloni & Associates complained

of herein.

41. The Account was assigned to Faloni & Associates for the purpose of collecting

the Debt.

42. The Account was past-due and in default when it was placed with or assigned to

Faloni & Associates for collection.

43. At all times relevant hereto, Faloni & Associates acted on behalf of LVNV,

Sherman, Resurgent and Alegis in an attempt to collect the Debt.


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44. At all times relevant hereto, the acts and omissions of Faloni & Associates were

incidental to or taken within the scope of the responsibilities given and authorized by LVNV,

Sherman, Resurgent and Alegis.

V. THE COLLECTION COMPLAINT

45. In an attempt to collect the Debt and on behalf of LVNV, Faloni & Associates

instituted a lawsuit ("Collection Lawsuit") against Lopez on or about February 27, 2015 by filing

a complaint ("Collection Complaint) in the Superior Court of New Jersey, Law Division, Special

Civil Part, Passaic County. A true and complete copy of the entire record in LVNV Funding LLC

v. Victoria Lopez, BER-DC-1767-15 is attached as Exhibit B.

46. Defendant David A. Faloni, Sr., on behalf of Faloni & Associates, drafted and/or

approved the form and the language of the Collection Complaint.

47. Defendant David A. Faloni, Jr., on behalf of Faloni & Associates, drafted and/or

approved the form and the language of the Collection Complaint.

48. The Collection Complaint bears the signature of David A. Faloni.

49. Plaintiff received and reviewed the Collection Complaint.

50. As Plaintiff understood the Collection Complaint upon receiving it, as would the

least sophisticated consumer, the debt collection process has entered into a phase where the

creditor, through its attorneys, will begin to use procedures established by law and known to

attorneys in a court of law to collect the Debt.

51. As Plaintiff understood the Collection Complaint upon receiving it, as would the

least sophisticated consumer, their property and other financial interests were in significant legal

jeopardy.


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52. Plaintiff presumed, as would the least sophisticated consumer, that the Collection

Complaint was in fact the work product of a licensed attorney who had personally reviewed the

particular circumstances of the Account as there was no admonition stating otherwise.

53. After receiving the Collection Complaint, Plaintiffs reasonably inferred—as

would a least sophisticated consumer—that the creditor of the debt was proceeding more

aggressively as it had incurred the expense to hire a law firm whose licensed attorneys had taken

the time to personally review the circumstances of her account and file suit against her.

54. Sometime after receiving the Collection Complaint, Plaintiff became informed

and now believes, and on that basis alleges, that the Collection Complaint were actually one of

many computer-generated, mass-produced, complaints that are filed against consumers at-large

without any meaningful attorney review or involvement.

55. In 2015, Faloni & Associates filed over 2,000 complaints in the Superior Court of

New Jersey, clogging the State Court’s docket, wasting judicial resources and harassing New

Jersey consumers. In fact, according to the ACMS and statistics derived from LexisNexis®

searches, on February 27, 2015, in additional to filing the Collection Complaint against Plaintiff,

Faloni & Associates filed approximately 194 additional debt collection complaints in the

Superior Court of New Jersey.

56. In fact, all of the 195 debt collection complaints filed by Faloni & Associates on

February 27, 2015, were all on behalf of LVNV.6

6 LVNV Funding LLC v. John Sumiel, SLM-DC-189-15 (Salem Cnty.) LVNV Funding LLC v, Charles Deininger, SLM-DC-190-15 (Salem Cnty.) LVNV Funding LLC v. Terry Moore, SLM-DC-191-15 (Salem Cnty.) LVNV Funding LLC v. Pedro Santos, HNT-DC-216-15 (Hunterdon Cnty.) LVNV Funding LLC v. David Gray, CPM-DC-249-15 (Cape May Cnty.) LVNV Funding LLC v. Jennifer Aponte, WRN-DC-360-15 (Warren Cnty.) LVNV Funding LLC v. Peter Malanga, WRN-DC-361-15 (Warren Cnty.) LVNV Funding LLC v. Michelle Charles, WRN-DC-363-15 (Warren Cnty.)


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LVNV Funding LLC v. Nancy Nunez, CUM-DC-416-15 (Cumberland Cnty.) LVNV Funding LLC v. Daniel Rodriguez, CUM-DC-417-15 (Cumberland Cnty.) LVNV Funding LLC v. Alejo Garcia, CUM-DC-418-15 (Cumberland Cnty.) LVNV Funding LLC v. Kristy Rivera, CUM-DC-419-15 (Cumberland Cnty.) LVNV Funding LLC v. Jasper Washington, CUM-DC-420-15 (Cumberland Cnty.) LVNV Funding LLC v. Beryl Aikens, CUM-DC-423-15 (Cumberland Cnty.) LVNV Funding LLC v. Cheryl Sydnor, CUM-DC-424-15 (Cumberland Cnty.) LVNV Funding LLC v. Jeanine Toscano, SSX-DC-630-15 (Sussex Cnty.) LVNV Funding LLC v. Cynthia Massaro, SSX-DC-631-15 (Sussex Cnty.) LVNV Funding LLC v. Timerly Hill, SSX-DC-632-15 (Sussex Cnty.) LVNV Funding LLC v. Marcia Sullivan, SSX-DC-633-15 (Sussex Cnty.) LVNV Funding LLC v. Christopher Barone, SSX-DC-634-15 (Sussex Cnty.) LVNV Funding LLC v. Stephen Jenkins, GLO-DC-718-15 (Gloucester Cnty.) LVNV Funding LLC v. Daniel McCarthy, GLO-DC-720-15 (Gloucester Cnty.) LVNV Funding LLC v. Lawrence Charleston, GLO-DC-721-15 (Gloucester Cnty.) LVNV Funding LLC v. Terri Wilson, GLO-DC-722-15 (Gloucester Cnty.) LVNV Funding LLC v. Nancy Kraft, GLO-DC-723-15 (Gloucester Cnty.) LVNV Funding LLC v. Shirley Coleman, GLO-DC-724-15 (Gloucester Cnty.) LVNV Funding LLC v. Ceasar Bravo, GLO-DC-725-15 (Gloucester Cnty.) LVNV Funding LLC v. Jonathon Bizzell, SOM-DC-759-15 (Somerset Cnty.) LVNV Funding LLC v. Herbert Concoy, SOM-DC-760-15 (Somerset Cnty.) LVNV Funding LLC v. Victor Martinez, SOM-DC-761-15 (Somerset Cnty.) LVNV Funding LLC v. James Petties, SOM-DC-762-15 (Somerset Cnty.) LVNV Funding LLC v. Jeffrey Lee, SOM-DC-767-15 (Somerset Cnty.) LVNV Funding LLC v. Le Nhi, SOM-DC-774-15 (Somerset Cnty.) LVNV Funding LLC v. Dolores Durham, BUR-DC-1121-15 (Burlington Cnty.) LVNV Funding LLC v. Bryan Moore, BUR-DC-1122-15 (Burlington Cnty.) LVNV Funding LLC v. Charles Cole, ATL-DC-1123-15 (Atlantic Cnty.) LVNV Funding LLC v. Laurie Deperro, BUR-DC-1123-15 (Burlington Cnty.) LVNV Funding LLC v. Joann Darden, ATL-DC-1124-15 (Atlantic Cnty.) LVNV Funding LLC v. Lanice Williams, BUR-DC-1124-15 (Burlington Cnty.) LVNV Funding LLC v. Kerron Cicchetti, ATL-DC-1125-15 (Atlantic Cnty.) LVNV Funding LLC v. Stephanie Lynn, BUR-DC-1125-15 (Burlington Cnty.) LVNV Funding LLC v. Neill Hiltebrand, BUR-DC-1126-15 (Burlington Cnty.) LVNV Funding LLC v. Adina Allen, BUR-DC-1127-15 (Burlington Cnty.) LVNV Funding LLC v. Alberto Santiago, ATL-DC-1127-15 (Atlantic Cnty.) LVNV Funding LLC v. Saquan Smith, BUR-DC-1128-15 (Burlington Cnty.) LVNV Funding LLC v. Armuhenia Zurlo, ATL-DC-1128-15 (Atlantic Cnty.) LVNV Funding LLC v. Drew Needs, BUR-DC-1129-15 (Burlington Cnty.) LVNV Funding LLC v. Miguel Ortiz, ATL-DC-1129-15 (Atlantic Cnty.) LVNV Funding LLC v. Joseph Dobbs, BUR-DC-1130-15 (Burlington Cnty.) LVNV Funding LLC v. Carl Risley, ATL-DC-1130-15 (Atlantic Cnty.) LVNV Funding LLC v. Beneyam Wakjira, ATL-DC-1132-15 (Atlantic Cnty.) LVNV Funding LLC v. Robert Kelsey, BUR-DC-1133-15 (Burlington Cnty.) LVNV Funding LLC v. Sandra Singleton, ATL-DC-1133-15 (Atlantic Cnty.) LVNV Funding LLC v. Jill Laboy, ATL-DC-1134-15 (Atlantic Cnty.)


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LVNV Funding LLC v. Thomas Haas, ATL-DC-1158-15 (Atlantic Cnty.) LVNV Funding LLC v. Maria Serrano, ATL-DC-1159-15 (Atlantic Cnty.) LVNV Funding LLC v. Elizabeth Billups, MER-DC-1180-15 (Mercer Cnty.) LVNV Funding LLC v. Douglas Taylor, MER-DC-1182-15 (Mercer Cnty.) LVNV Funding LLC v. Samuel Sparella, MER-DC-1183-15 (Mercer Cnty.) LVNV Funding LLC v. Deborah Wesley, MER-DC-1184-15 (Mercer Cnty.) LVNV Funding LLC v. Sequan Reynolds, MER-DC-1185-15 (Mercer Cnty.) LVNV Funding LLC v. Charles Lewis, MER-DC-1186-15 (Mercer Cnty.) LVNV Funding LLC v. James Burd, MER-DC-1187-15 (Mercer Cnty.) LVNV Funding LLC v. Hector Maldonado, MER-DC-1190-15 (Mercer Cnty.) LVNV Funding LLC v. Katiuska Cepin, MRS-DC-1389-15 (Morris Cnty.) LVNV Funding LLC v. Abraham Amado, MRS-DC-1391-15 (Morris Cnty.) LVNV Funding LLC v. Victoria Lopez, PAS-DC-1767-15 (Passaic Cnty.) LVNV Funding LLC v. Jahaira Mathis, PAS-DC-1768-15 (Passaic Cnty.) LVNV Funding LLC v. Nancy Ramos, PAS-DC-1769-15 (Passaic Cnty.) LVNV Funding LLC v. Giorgio Petta, PAS-DC-1770-15 (Passaic Cnty.) LVNV Funding LLC v. Courtney Degroat, PAS-DC-1771-15 (Passaic Cnty.) LVNV Funding LLC v. Ernesto Hernandez, PAS-DC-1772-15 (Passaic Cnty.) LVNV Funding LLC v. Xavier Huertas, PAS-DC-1773-15 (Passaic Cnty.) LVNV Funding LLC v. Dean Basha, PAS-DC-1774-15 (Passaic Cnty.) LVNV Funding LLC v. Juan Soto, PAS-DC-1775-15 (Passaic Cnty.) LVNV Funding LLC v. Dana McLaughlin, OCN-DC-1776-15 (Ocean Cnty.) LVNV Funding LLC v. Marco Rodriguez, OCN-DC-1776-15 (Ocean Cnty.) LVNV Funding LLC v. Daniel Shufeldt, OCN-DC-17777-15 (Ocean Cnty.) LVNV Funding LLC v. Mary Taylor, PAS-DC-1777-15 (Passaic Cnty.) LVNV Funding LLC v. Donna Cirillo, OCN-DC-1778-15 (Ocean Cnty.) LVNV Funding LLC v. Jose Restrepo, PAS-DC-1778-15 (Passaic Cnty.) LVNV Funding LLC v. Manuel Alicea, PAS-DC-1779-15 (Passaic Cnty.) LVNV Funding LLC v. Michele Nunno, OCN-DC-1779-15 (Ocean Cnty.) LVNV Funding LLC v. Angel Rojas, PAS-DC-1780-15 (Passaic Cnty.) LVNV Funding LLC v. Charles Templeton, OCN-DC-1780-15 (Ocean Cnty.) LVNV Funding LLC v. Sharen Ahrens, PAS-DC-1781-15 (Passaic Cnty.) LVNV Funding LLC v. Leonard Dasaro, OCN-DC-1782-15 (Ocean Cnty.) LVNV Funding LLC v. Katherine Rios, PAS-DC-1782-15 (Passaic Cnty.) LVNV Funding LLC v. Anna Kirschoch, OCN-DC-1783-15 (Ocean Cnty.) LVNV Funding LLC v. Manuel Morel, PAS-DC-1784-15 (Passaic Cnty.) LVNV Funding LLC v. Mark Scalgione, OCN-DC-1784-15 (Ocean Cnty.) LVNV Funding LLC v. Maria Rodriguez, PAS-DC-1785-15 (Passaic Cnty.) LVNV Funding LLC v. Kyle Stevenson, OCN-DC-1785-15 (Ocean Cnty.) LVNV Funding LLC v. Anthony Mueller, OCN-DC-1786-15 (Ocean Cnty.) LVNV Funding LLC v. Marie McConnon, OCN-DC-1787-15 (Ocean Cnty.) LVNV Funding LLC v. Tuvya Lemberg, OCN-DC-1788-15 (Ocean Cnty.) LVNV Funding LLC v. Tina Schumann, OCN-DC-1789-15 (Ocean Cnty.) LVNV Funding LLC v. Robert Gooden, OCN-DC-1796-15 (Ocean Cnty.) LVNV Funding LLC v. Edward Tharp, CAM-DC-1812-15 (Camden Cnty.) LVNV Funding LLC v. Sean McCarthy, CAM-DC-1813-15 (Camden Cnty.)


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LVNV Funding LLC v. Clementin Mejia, CAM-DC-1814-15 (Camden Cnty.) LVNV Funding LLC v. Gwendolyn Belcher, CAM-DC-1815-15 (Camden Cnty.) LVNV Funding LLC v. John Stern, CAM-DC-1816-15 (Camden Cnty.) LVNV Funding LLC v. Amalia Cruz, CAM-DC-1817-15 (Camden Cnty.) LVNV Funding LLC v. Santos Rivera, CAM-DC-1818-15 (Camden Cnty.) LVNV Funding LLC v. Mary Steffen, CAM-DC-1819-15 (Camden Cnty.) LVNV Funding LLC v. Joseph Meli, CAM-DC-1822-15 (Camden Cnty.) LVNV Funding LLC v. Kathleen Cave, CAM-DC-1823-15 (Camden Cnty.) LVNV Funding LLC v. Domenic Corrado, CAM-DC-1824-15 (Camden Cnty.) LVNV Funding LLC v. Yogesh Ade, CAM-DC-1825-15 (Camden Cnty.) LVNV Funding LLC v. Michelle Muse, CAM-DC-1826-15 (Camden Cnty.) LVNV Funding LLC v. Nicole Meara, CAM-DC-1827-15 (Camden Cnty.) LVNV Funding LLC v. Sylvester Jones, CAM-DC-1828-15 (Camden Cnty.) LVNV Funding LLC v. Donna Zarnosky, CAM-DC-1829-15 (Camden Cnty.) LVNV Funding LLC v. Howard Bailey, CAM-DC-1830-15 (Camden Cnty.) LVNV Funding LLC v. Linda Glucksman, UNN-DC-1911-15 (Union Cnty.) LVNV Funding LLC v. Terry Gordon, UNN-DC-1912-15 (Union Cnty.) LVNV Funding LLC v. Erica Mendex, UNN-DC-1913-15 (Union Cnty.) LVNV Funding LLC v. William Yodlowsky, UNN-DC-1914-15 (Union Cnty.) LVNV Funding LLC v. Corey Wells, UNN-DC-1915-15 (Union Cnty.) LVNV Funding LLC v. Philip Hurley, UNN-DC-1917-15 (Union Cnty.) LVNV Funding LLC v. Carnell Mathis, UNN-DC-1918-15 (Union Cnty.) LVNV Funding LLC v. Gregory Koenitzer, UNN-DC-1919-15 (Union Cnty.) LVNV Funding LLC v. William Witkowski, UNN-DC-1920-15 (Union Cnty.) LVNV Funding LLC v. Luis Viera, UNN-DC-1922-15 (Union Cnty.) LVNV Funding LLC v. Derek Simmons, UNN-DC-1924-15 (Union Cnty.) LVNV Funding LLC v. Sanders Gomes, UNN-DC-1925-15 (Union Cnty.) LVNV Funding LLC v. Carmelita Ward, UNN-DC-1928-15 (Union Cnty.) LVNV Funding LLC v. Xiomara Jordan, MON-DC-2049-15 (Monmouth Cnty.) LVNV Funding LLC v. June Dahlquist, MON-DC-2052-15 (Monmouth Cnty.) LVNV Funding LLC v. Peter Byrne, MON-DC-2053-15 (Monmouth Cnty.) LVNV Funding LLC v. Richard Riccardi, MON-DC-2055-15 (Monmouth Cnty.) LVNV Funding LLC v. Vincent Davis, MON-DC-2056-15 (Monmouth Cnty.) LVNV Funding LLC v. Heather Rogers, MON-DC-2057-15 (Monmouth Cnty.) LVNV Funding LLC v. Rebecca Bruce, MON-DC-2058-15 (Monmouth Cnty.) LVNV Funding LLC v. Gary Goode, MON-DC-2059-15 (Monmouth Cnty.) LVNV Funding LLC v. Ramez George, MON-DC-2062-15 (Monmouth Cnty.) LVNV Funding LLC v. Ann Dobbins, HUD-DC-2172-15 (Hudson Cnty.) LVNV Funding LLC v. Henry Nieves, HUD-DC-2714-15 (Hudson Cnty.) LVNV Funding LLC v. Olga Merchan, HUD-DC-2175-15 (Hudson Cnty.) LVNV Funding LLC v. Abel Cruz, HUD-DC-2176-15 (Hudson Cnty.) LVNV Funding LLC v. Gladys Liriano, HUD-DC-2177-15 (Hudson Cnty.) LVNV Funding LLC v. Carmen Pena, HUD-DC-2179-15 (Hudson Cnty.) LVNV Funding LLC v. Michael Bartlett, HUD-DC-2180-15 (Hudson Cnty.) LVNV Funding LLC v. Maria Pereira, HUD-DC-2182-15 (Hudson Cnty.) LVNV Funding LLC v. Richard Rojo, HUD-DC-2184-15 (Hudson Cnty.)


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LVNV Funding LLC v. Carmela Paradiso, HUD-DC-2185-15 (Hudson Cnty.) LVNV Funding LLC v. Louis Osorio, HUD-DC-2186-15 (Hudson Cnty.) LVNV Funding LLC v. Michele Byrnes, HUD-DC-2199-15 (Hudson Cnty.) LVNV Funding LLC v. Carols Torres, HUD-DC-2204-15 (Hudson Cnty.) LVNV Funding LLC v. Sigred Batista, HUD-DC-2205-15 (Hudson Cnty.) LVNV Funding LLC v. Lillian Wiggins, HUD-DC-2206-15 (Hudson Cnty.) LVNV Funding LLC v. Linh Nguyen, MID-DC-2375-15 (Middlesex Cnty.) LVNV Funding LLC v. Sawsan Najjar, MID-DC-2376-15 (Middlesex Cnty.) LVNV Funding LLC v. Lonique Frage, MID-DC-2377-15 (Middlesex Cnty.) LVNV Funding LLC v. Clodosvin Ramos, MID-DC-2378-15 (Middlesex Cnty.) LVNV Funding LLC v. Fabio Acosta, MID-DC-2379-15 (Middlesex Cnty.) LVNV Funding LLC v. Kenneth Cisson, MID-DC-2380-15 (Middlesex Cnty.) LVNV Funding LLC v. Dolores Casanova, MID-DC-2381-15 (Middlesex Cnty.) LVNV Funding LLC v. Kyle Miller, MID-DC-2382-15 (Middlesex Cnty.) LVNV Funding LLC v. Keith Rybak, MID-DC-2383-15 (Middlesex Cnty.) LVNV Funding LLC v. Patrick Heaney, MID-DC-2384-15 (Middlesex Cnty.) LVNV Funding LLC v. Karen Davis, MID-DC-2385-15 (Middlesex Cnty.) LVNV Funding LLC v. Tara Bowen, MID-DC-2386-15 (Middlesex Cnty.) LVNV Funding LLC v. Bodhi Patel, MID-DC-2387-15 (Middlesex Cnty.) LVNV Funding LLC v. Julius Papp, MID-DC-2388-15 (Middlesex Cnty.) LVNV Funding LLC v. Regina Harris, MID-DC-2389-15 (Middlesex Cnty.) LVNV Funding LLC v. Floretta Bell, MID-DC-2390-15 (Middlesex Cnty.) LVNV Funding LLC v. Traci Benjamin, MID-DC-2391-15 (Middlesex Cnty.) LVNV Funding LLC v. Linda Evans, MID-DC-2392-15 (Middlesex Cnty.) LVNV Funding LLC v. Matthew Washington, MID-DC-2395-15 (Middlesex Cnty.) LVNV Funding LLC v. Atlas Flanagan, MID-DC-2396-15 (Middlesex Cnty.) LVNV Funding LLC v. Margaret Angelino, MID-DC-2397-15 (Middlesex Cnty.) LVNV Funding LLC v. Miryam Perez, MID-DC-2398-15 (Middlesex Cnty.) LVNV Funding LLC v. Frank Greene, ESX-DC-2871-15 (Essex Cnty.) LVNV Funding LLC v. Marion Higgs, ESX-DC-2872-15 (Essex Cnty.) LVNV Funding LLC v. Makamba Sackey, ESX-DC-2873-15 (Essex Cnty.) LVNV Funding LLC v. John Cariaga, ESX-DC-2874-15 (Essex Cnty.) LVNV Funding LLC v. Janette Spencemartin, ESX-DC-2875-15 (Essex Cnty.) LVNV Funding LLC v. Donnette Bascom, ESX-DC-2876-15 (Essex Cnty.) LVNV Funding LLC v. Jean Louis, ESX-DC-2877-15 (Essex Cnty.) LVNV Funding LLC v. Shelley Kingkamara, ESX-DC-2878-15 (Essex Cnty.) LVNV Funding LLC v. Juana Rodriguez, ESX-DC-2879-15 (Essex Cnty.) LVNV Funding LLC v. Michael Katz, ESX-DC-2880-15 (Essex Cnty.) LVNV Funding LLC v. Christopher Russell, ESX-DC-2881-15 (Essex Cnty.) LVNV Funding LLC v. Nasir Salaam, ESX-DC-2882-15 (Essex Cnty.) LVNV Funding LLC v. Eduard Javier, ESX-DC-2883-15 (Essex Cnty.) LVNV Funding LLC v. Luis David, ESX-DC-2884-15 (Essex Cnty.) LVNV Funding LLC v. Jean Louis, ESX-DC-2885-15 (Essex Cnty.) LVNV Funding LLC v. Marisol Moreno, ESX-DC-2886-15 (Essex Cnty.) LVNV Funding LLC v. Aaron Veal, ESX-DC-2887-15 (Essex Cnty.)


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57. By signing and filing the Collection Complaint and the 194 other collection

complaints on February 27, 2015, Faloni & Associates certified that he read the complaints and

also determined “to the best of . . . his knowledge, information, and belief, formed after an

inquiry reasonable under the circumstances[,] the factual allegations have evidentiary support

. . . .”7

58. Faloni & Associates must have “1) drafted, or carefully reviewed, the complaint;

and 2) conducted an inquiry, reasonable under the circumstances, sufficient to form a good faith

belief that the claims and legal contentions in the complaint are supported by fact and warranted

by law.”8

59. Prior to filing 195 complaints on February 27, 2015, Faloni & Associates did not

conduct a reasonable inquiry into the truth of the allegations contained in each of the 195

complaints.

60. In fact, it is Faloni & Associates’s modus operandi to undermine the judicial

system by mass filing collection lawsuits without reasonable inquiry into whether the facts

justify a suit. For example, in an effort to impermissibly take litigation shortcuts to increase the

spoils for Faloni & Associates and its clients, Faloni & Associates had the temerity to, inter alia,

“alter[] Declarations to change the date of execution or the balance owed on the debt, or both,

and then fil[e] those Declarations in Collections Litigation in the New Jersey courts[,]”9 and to

perjure himself in the process.

LVNV Funding LLC v. Anthony Hayes, ESX-DC-2888-15 (Essex Cnty.) LVNV Funding LLC v. Samuel Wolfe, ESX-DC-2889-15 (Essex Cnty.) LVNV Funding LLC v. Susana Miraldo, ESX-DC-2891-15 (Essex Cnty.) LVNV Funding LLC v. Judith Destinoble, ESX-DC-2898-15 (Essex Cnty.) 7 See N.J. Ct. R. 1:4-8(a). 8 Bock, 30 F. Supp. 3d at 303-4. 9 See Consumer Financial Protection Bureau, Faloni & Associates, LLC,


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61. Annexed to the Collection Complaint is the “Account Summary Report” prepared

by Resurgent on behalf of LVNV.10

62. The Collection Complaint contradicts itself. Defendants are not even sure of the

correct balance as they demanded three different amounts: $1,000.48 and $1,010.48 in the debt

collection complaint, and $1,009.55 on the Account Summary Report.

63. The Account Summary Report states that the original creditor was Credit One

Bank, N.A., and that the Account was acquired from MHC Receivables, LLC.

64. MHC Receivables, LLC then allegedly transferred, sold, assigned, conveyed,

granted and delivered the Account to Sherman.

65. Thereafter, Sherman allegedly transferred all of its rights, title and interest in the

Account to LVNV.

66. Prior to filing the Collection Complaint, no attorney at Faloni & Associates

reviewed assignment documents from Credit One Bank, N.A., to MHC Receivables, LLC, to

Sherman to LVNV, the monthly statements and the document containing the terms and

conditions of the Credit One Account of Plaintiff.

67. Prior to filing 195 complaints on February 27, 2015, no attorney at Faloni &

Associates reviewed the documents relating to Faloni & Associates’ clients.

68. Prior to filing 195 complaints, no attorney at Faloni & Associates reviewed the

cardholder agreements and monthly statements relating to the original creditor of the debts of

other New Jersey consumers, as well as documents relating to the chain of assignments of the

debt-buyers.

http://www.consumerfinance.gov/policy-compliance/enforcement/actions/faloni-associates/ (Feb. 23, 2016) (Consent Order attached as Exhibit C). 10 See Exhibit B.


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69. It is impossible or highly improbable that an attorney at Faloni & Associates

drafted or carefully reviewed the 194 collection complaints and the Collection Complaint filed

against Plaintiff and other New Jersey consumers.


reviewed and made a sufficient inquiry into the 194 cases and the case against Plaintiff from

which to conclude that the factual allegations and legal contentions have evidentiary support and

are warranted by law.


conducted a meaningful attorney review by reviewing and making a sufficient inquiry into

whether the factual allegations have evidentiary support and justify suit in the 194 cases and the

case against Plaintiff.

72. On information and belief, Faloni & Associates has an automated process where

non-attorney staff reviews and prepares the collection complaint.

73. Faloni & Associates has a policy and procedure of preparing and filing of the

collection complaints without any meaningful attorney involvement, which was in effect and

utilized with respect to filing of the Collection Complaint against Plaintiff.

74. “[A] signed complaint is inherently false and misleading, in violation of 15 U.S.C.

1692e, where, at the time of signing, the attorney signing it has not 1) drafted, or carefully

reviewed, the complaint; and 2) conducted an inquiry, reasonable under the circumstances,

sufficient to form a good faith belief that the claims and legal contentions in the complaint are

supported by fact and warranted by law.”11

11 Bock, 30 F. Supp. 3d at 303-4.


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75. It is the policy and practice of Faloni & Associates to file collection complaints in

an attempt to collect alleged consumer debts, without meaningful attorney involvement; which is

a violation of the FDCPA because it a false, deceptive, misleading representation and an unfair

and unconscionable means of collection.

76. Faloni & Associates used the same procedures in preparing and filing the

Collection Complaint against Plaintiff as it used in preparing and filing the same and/or similar

complaints against numerous other New Jersey consumers.

77. During the proposed class period as defined below, Faloni & Associates filed

complaints that are same or similar to the Collection Complaint against numerous New Jersey

residents in an attempt to collect a debt.


complaints that are the same or similar to the Collection Complaint against numerous New

Jersey residents in an attempt to collect a debt allegedly owed to others.


complaints that are the same or similar to the Collection Complaint against numerous New

Jersey residents in an attempt to collect a debt allegedly owed to others which were incurred

primarily for personal, family or household purposes.

80. During the proposed class period as defined below, Faloni & Associates permitted

its staff to prepare collection complaints without an attorney individually reviewing the file,

making an appropriate inquiry, and exercising professional judgment.

81. During the proposed class period as defined below, Faloni & Associates assisted

its non-attorney staff in the unauthorized practice of law and engaged in deceitful conduct.

VI. UNLAWFUL INTEREST/COLLECTION


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82. Defendants are not licensed by the New Jersey Department of Banking and

Insurance under the New Jersey Consumer Finance Licensing Act (“NJCFLA”) or any other

State consumer lending statute.12

83. “Any person directly or indirectly engaging . . . in the business of buying,

discounting or endorsing notes, or of furnishing, or procuring guarantee or security for

compensation in amounts of $50,000 or less, shall be deemed to be engaging in the consumer

loan business."13

84. "No person shall engage in business as a consumer lender or sales finance

company without first obtaining a license or licenses under this act."14

85. Defendants are not permitted to engage in the “consumer loan business” since

they did not first obtain a license pursuant to the NJCFLA.15

86. Accordingly, “attempt[s] to collect Plaintiff’s alleged debt on behalf of LVNV,

who was not licensed as a consumer lender under the NJCFLA, constitutes prohibited conduct

under the NJCFLA.”16

87. Defendants are not permitted to charge interest in the State of New Jersey.

88. Defendants have no statutory or contractual right to assess any additional interest

or amount on the Account.

12 See also N.J. Stat. Ann. § 17:11C-1 et seq. 13 N.J. Stat. Ann. § 17:11C-2. 14 N.J. Stat. Ann. § 17:11C-3 (emphasis added). 15 See N.J. Stat. Ann. § 17:11C-2 to -3. 16 Veras v. LVNV Funding, LLC, No. 13-1745 (RBK/JS), 2014 U.S. Dist. LEXIS 34176, at *19 (D.N.J. Mar. 17, 2014) (“Plaintiff's allegation that Defendants attempted to collect Plaintiff's debt in contravention of the NJCFLA is sufficient to at least support his claim under section 1692e(10), that Defendants used a false representation or deceptive means to collect or attempt to collect Plaintiff's debt.”).


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89. Defendants have no statutory or contractual right to collect any interest from the

Plaintiff on the Debt.

90. Defendants have no statutory or contractual right to collect any additional

amounts from Plaintiff on the alleged Debt.

91. Nevertheless, Defendants caused the balance of the Account to increase.

92. While attempting to collect the Debts, LVNV, Sherman, Resurgent and Alegis

furnished information to the Equifax, Experian and TransUnion consumer reporting agencies.

93. LVNV, Sherman, Resurgent and Alegis communicated credit information

regarding the alleged Debts to the Equifax, Experian and TransUnion consumer reporting

agencies balances higher than the original balances on multiple occasions.

94. Credit reporting by a debt collector constitutes an attempt to collect a debt.17

95. Defendants unlawfully added interest and/or other collection charges to Plaintiff’

respective Accounts after the Debts were charged off and sold by the original creditor.

96. Paragraph one of the Collection Complaint demands a total of $1,000.48 for the

Debt.

97. Yet, paragraph four of the Collection Complaint demands $1,010.48.

98. However, the Account Summary Report annexed to the Collection Complaint

clearly shows Defendants accessed interest in the amount of $9.07, resulting in a total balance of

$1,009.55.

99. It is clear that LVNV, Sherman, Resurgent and Alegis sends alleged debts out for

collection without really knowing the amounts due.

17 See, e.g., Rivera v. Bank One, 145 F.R.D. 614, 623 (D.P.R. 1993) (a creditor’s report of a debt to a consumer reporting agency is a “powerful tool, designed in part to wrench compliance with payment terms from its cardholder”).


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100. LVNV, Sherman, Resurgent and Alegis purchased portfolios of charged-off credit

card debts that came with no interest-rate information/documentation or unreliable interest-rate

information/documentation.

101. LVNV, Sherman, Resurgent and Alegis then violated the FDCPA by charging

interest anyway and sending those accounts out for collection anyway.

102. Defendants used the same procedures used in inflating the amount owed and

attempting to collect amounts from Plaintiff not allowed by law to numerous other New Jersey

consumers.

103. It is the Defendants’ policy and practice to inflate the account balances by

unlawfully charging interest, as described above, in an attempt to collect alleged consumer debts,

and in an attempt to collect more than what is contractually and lawfully owing; which is an

unfair, unconscionable, false, deceptive and misleading practice violative of the FDCPA.

VII. CLASS ACTION ALLEGATIONS

104. This action is brought and may properly proceed as a class action, pursuant to the

provisions of Rule 23 of the Federal Rules of Civil Procedure. Plaintiff brings this action on behalf

of herself and others similarly situated. Subject to discovery and further investigation which may

cause Plaintiff to narrow, expand or otherwise modify the following class definition at the time

Plaintiff moves for class certification, Plaintiff seeks certification of two Classes initially defined as

follows:

Class A: All natural persons with addresses in the State of New Jersey against whom, beginning February 26, 2015 through and including the final resolution of this case, Faloni & Associates filed a collection complaint in the Superior Court of New Jersey in an attempt to collect a consumer debt allegedly owed to LVNV.

Class B: All natural persons with addresses in the State of New Jersey against whom, beginning February 26, 2015 through and including the final resolution of this case, Faloni & Associates attempted to collect,


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on behalf of LVNV, the incorrect amount, amounts not permitted by law or interest accrued after the alleged debt was charged-off.

105. Plaintiff seeks to recover statutory damages, attorney’s fees and costs on behalf of

all class members under the Fair Debt Collection Practices Act.

106. The Classes for whose benefit this action is brought are so numerous that joinder

of all members is impracticable.

107. There are questions of law and fact common to the members of the Classes that

predominate over questions affecting only individuals, including but not limited to:

A. Whether Defendants are debt collectors under the FDCPA; B. Whether Defendants’ practice of preparing and filing civil complaints against consumers when no attorney reviewed the complaint, reviewed the file, made appropriate inquiry, or exercised professional judgment constitutes engagement in the lay collection business; C. Whether Defendants’ engagement in the lay collection business constitutes a misrepresentation of the ability to collect a debt under New Jersey law;

D. Whether Defendant violated 15 U.S.C. § 1692e, 15 U.S.C. § 1692e(2), 15 U.S.C. § 1692e(3), 15 U.S.C. § 1692e(10), and 15 U.S.C. § 1692f; and

E. Whether Defendants violated 15 U.S.C. §§ 1692e, 1692e(2)(A), 1692e(5), 1692e(10), 1692f and 1692f(1) by falsely representing the amount of the alleged debts, by inflating the amount of the alleged debts without any statutory or contractual authority to do so, or by attempting to collection amounts not permitted by law;

F. Whether Plaintiff and the Classes are entitled to damages.

108. A class action is superior to other available methods for the fair and efficient

adjudication of this controversy since joinder of all members is impracticable. The FDCPA

statutory scheme provides for statutory damages payable to each class member. A class action


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will cause an orderly and expeditious administration of the claims of the Class and will foster

economies of time, effort and expense.

109. The claims of the Plaintiff are typical of the claims of the members of the Classes.

110. The questions of law and/or fact common to the members of the Classes

predominate over any questions affecting only individual members.

111. Plaintiff does not have interests antagonistic to those of the Classes.

112. The Classes, of which Plaintiff is a member, is readily identifiable.

113. Plaintiff will fairly and adequately protect the interests of the Classes, and has

retained competent counsel experienced in the prosecution of consumer litigation. Proposed

Class Counsel have investigated and identified potential claims in the action; have a great deal of

experience in handling class actions, other complex litigation, and claims of the type asserted in

this action.

114. The prosecution of separate actions by individual members of the Classes would

run the risk of inconsistent or varying adjudications, which would establish incompatible

standards of conduct for the Defendant in this action or the prosecution of separate actions by

individual members of the class would create the risk that adjudications with respect to

individual members of the class would as a practical matter be dispositive of the interests of the

other members not parties to the adjudications or substantially impair or impede their ability to

protect their interests. Prosecution as a class action will eliminate the possibility of repetitious

litigation.

115. Plaintiff does not anticipate any difficulty in the management of this litigation.

VIII. VIOLATIONS OF THE FDCPA


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116. Plaintiff reasserts and incorporates herein the allegations contained in the

preceding and following paragraphs.

117. Plaintiff is a “consumer” as defined by 15 U.S.C. § 1692a(3).

118. The Debt is a consumer “debt” as defined by 15 U.S.C. § 1692a(5).

119. Defendants are “debt collectors” as defined by 15 U.S.C. § 1692a(6) and the

interpretations thereof.

120. Defendants are not “creditors” as defined by 15 U.S.C. § 1692a(4).

121. The Collection Complaint is a “communication” as defined by 15 U.S.C. §

1692a(2).

122. At all times relevant hereto, Faloni & Associates acted on behalf of LVNV,

Sherman, Resurgent and Alegis in an attempt to collect the Debt.

123. At all times relevant hereto, the acts and omissions of Faloni & Associates were

incidental to or taken within the scope of the responsibilities given and authorized by LVNV,

Sherman, Resurgent and Alegis.

124. At all times relevant hereto, LVNV, Sherman, Resurgent and Alegis actively

participated in the collection of consumer debts allegedly owed by Lopez and other New Jersey

consumers.

125. LVNV, Sherman, Resurgent and Alegis knew or should have known at the time it

assigned the alleged debts of Plaintiff and other New Jersey consumers to Faloni & Associates,

that LVNV, Sherman, Resurgent and Alegis did not know the amount of interest allegedly due, if

at all, on the portfolios of accounts purchased by LVNV.

126. LVNV, Sherman, Resurgent and Alegis knew or should have known that without

providing Faloni & Associates with information concerning the amount of interest due, if at all,


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that by assigning the portfolios of accounts for Faloni & Associates for collection, LVNV,

Sherman, Resurgent and Alegis was hiring and directing Faloni & Associates to violate the

FDCPA by failing to state the correct amount allegedly due and by assessing and attempting to

collection unlawful interest.

127. Therefore, not only is LVNV, Sherman, Resurgent and Alegis liable for the acts

and omissions of its agent-Faloni & Associates, but for its own acts in hiring and directing Faloni

& Associates to collect on debts for which LVNV, Sherman, Resurgent and Alegis did not know

the correct amounts allegedly due.

128. By filing the Collection Complaint against Plaintiff and similar collection

complaints against other New Jersey consumers without first having an attorney individually

review the file, make the appropriate inquiry, and exercise professional judgment, Defendants

violated the following provisions of the FDCPA:

a. 15 U.S.C. §§ 1692e and 1692e(10), by using false, deceptive or misleading representation or means in connection with the collection of a debt from Plaintiff and those similarly situated;

b. 15 U.S.C. § 1692e(2)(A), by misrepresenting the character, amount or legal status of the alleged debt owed by Plaintiff and those similarly situated;

c. 15 U.S.C. § 1692e(3), by misrepresenting or falsely implying that the collection complaints filed against Plaintiff and those similarly situated were prepared and/or reviewed by an attorney, when no attorney reviewed the complaints; and

d. 15 U.S.C. § 1692f by using unfair and unconscionable means to collect or attempt to collect a debt from Plaintiff and those similarly situated.

129. By attempting to collect consumer debts without a license to do so under the

NJCFLA, by attempting to collect amounts not permitted by law or contract and by misstating

the amount due, Defendants violated the following provisions of the FDCPA:


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a. Defendants used false, deceptive, and misleading representations and means in connection with the collection of the alleged debts, in violation of 15 U.S.C. § 1692e;

b. Defendants falsely represented the character, amount, or legal status of the alleged debts, in violation of 15 U.S.C. § 1692e(2)(A);

c. Defendants threatened and actually took an action that cannot legally be taken, in violation of 15 U.S.C. § 1692e(5);

d. Defendants used false representations and deceptive means to collect or attempt to collect the alleged debts, in violation of 15 U.S.C. § 1692e(10);

e. Defendants used unfair or unconscionable means to collect or attempt to collect the alleged debts, in violation of 15 U.S.C. § 1692f; and

f. Defendants attempted to collect amounts not expressly authorized by the agreement creating the alleged debts or permitted by law, in violation of 15 U.S.C. § 1692f(1).

130. The violations of the FDCPA described herein constitute per se violations.

131. Based on any one or more of those violations, Defendants are liable to Plaintiff

for damages, attorney’s fees and costs under 15 U.S.C. § 1692k.

IX. PRAYER FOR RELIEF

WHEREFORE, Plaintiff Victoria Lopez demands judgment against Defendants, Faloni

& Associates, L.L.C. a/k/a Law Offices of Faloni & Associates, LLC; David A. Faloni, Sr.;

David A. Faloni, Jr.; LVNV Funding LLC; Sherman Originator, LLC; Resurgent Capital

Services, L.P.; Alegis Group, LLC as follows:

A. For certification of this instant matter as a class action, appointing the named Plaintiff as representative of the class, and appointing the attorneys of Kim Law Firm LLC as class counsel;

B. For statutory damages in favor of Plaintiff pursuant to 15 U.S.C. § 1692k(a)(2)(B)(i) or, in the alternative, 15 U.S.C. § 1692k(a)(2)(A);

C. For statutory damages in favor of the Class pursuant to 15 U.S.C. § 1692k(a)(2)(B)(ii);


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D. For attorney’s fees, litigation expenses and costs in connection with this action pursuant to 15 U.S.C. § 1692k(a)(3);

E. For pre-judgment and post-judgment interest; and

F. For such other and further relief as the Court deems equitable and just.

X. JURY DEMAND

Plaintiff demands trial by jury as to all claims and defenses.

XI. CERTIFICATION

Pursuant to Local Civil Rule 11.2, I hereby certify to the best of my knowledge that the

matter in controversy is not the subject of any other action pending in any court or of any

pending arbitration or administrative proceeding except:

• Antista v. Forster Garbus & Garbus, et al., 2:15-cv-04338-WHW-CLW

• Gutierrez v. J.C. Christensen & Associates, Inc., et al., 2:16-cv-00428-WJM-MF

• Lee v. First National Collection Bureau, Inc., et al., 2:16-cv-01671-JLL-JAD

• Maldonado v. Law Offices of Faloni & Associates, LLC, et al., 2:15-cv-02859-SRC-CLW

• Morisco v. Allied Interstate LLC, et al., 2:16-cv-01507-MCA-MAH

• Nicasio v. Law Offices of Faloni & Associates, LLC, et al., 2:16-cv-00474-WJM-MF

• Sandoval v. LVNV Funding LLC, et al., 2:15-cv-06728-KM-MAH

• Staniland v. Forster, Garbus & Garbus et al., 2:16-cv-01902-JLL-JAD

• Williams-Hopkins v. Firstsource Advantage, LLC, et al., 2:16-cv-01604-MCA-MAH

KIM LAW FIRM LLC s/ Yongmoon Kim Dated: April 27, 2016 Yongmoon Kim

Attorneys for Plaintiff and the Proposed Class


File No. 1081.0003 Robert Scott Kennard California State Bar No. 117017 NELSON & KENNARD 2180 Harvard Street, Ste. 160 (95815) P.O. Box 13807 Sacramento, CA 95853 Telephone: (916) 920-2295 Facsimile: (916) 920-0682

Attorneys for Defendants LVNV FUNDING LLC; NELSON & KENNARD

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA

Marvin Randall, )

) Plaintiff, )

) vs. )

) Nelson & Kennard; LVNV Funding ) LLC; )

) Defendants. 1

CASE NO. CV-09-387-PHX-LOA

DEFENDANTS ' SEPARATE STATEMENT O:? FACTS IN SUPPORT OF DEFENDANTS LVNV F'UNDING LLC AND NELSON & KENNARD'S OPPOSITION TO PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT AND IN SUPPORT OF THEIR CROSS-MOTION FOR SUMMARY JUDGMEN!?

A. Retention of Nelson & Kennard

1. The business purpose of LVNV Funding LLC is to acquire

and liquidate debt. LVNV Funding LLC has no employees. Its

business is serviced by Resurgent Capital Services pursuant to a

written agreement and power of attorney. Deposition o f Foster, p .

8, In. 17 throughp. 10, In. 7. I 2. Sears National Bank was formerly in the business of

issuing and servicing Mastercard branded credit cards. The credit

card portfolio of Sears National Bank Randall's account was

DEFENDANTS' SEPARATE STATEMENT OF FACTS - 1 I

Case 2:09-cv-00387-LOA Document 69 Filed 08/09/10 Page 1 of 13Case 2:16-cv-01117-SDW-SCM Document 19-1 Filed 04/27/16 Page 1 of 13 PageID: 125

2cquired by Citibank on or about October 13, 2006. On October 31,

2006, Sherman Originator, LLC acquired a portfolio of the Sears

3randed Master Cards from Citibank, including the account which is

the subject of the within litigation. Those accounts were

subsequently assigned to LVNV Funding, LLC. Deposition o f Foster,

p. 14, In 18 through p . 21, In. 2 0 .

3. The records of LVNV as provided by Citibank indicate that

Yr. Randall applied for and obtained a Sears branded Mastercard on

Yay 9, 2002. Mr. Randall last made payment on the account to

Zitibank on October 7, 2005. Citibank thereafter charged off the

account on July 28, 2006 with a balance of $4,124.60. The account

das then sold to Sherman Originator, LLC and assigned to LVNV

Funding LLC. The address provided by Citibank to LVNV Funding LLC

at that time was 2407 Galisteo Street, Corona, California 92882-

6813 (hereinafter "Galisteo"). Deposition of Foster, p . 38, In. 11

through pg. 39, In. 16.

4. On April 18, 2008, Resurgent Capital Services, on behalf

3f LVNV retained the offices of Nelson & Kennard located at 2180

Harvard Street, Ste. 160, Sacramento, California 95815 to collect

the balance due from Mr. Randall on the Sears branded account,

including the initiations of litigation if necessary. The last

known address for Mr. Randall that Resurgent provided to Nelson &

Kennard was the Galisteo address. Deposition o f Foster, p . 38,

In. 11 through p. 39, In. 1 .

///

DEFENDANTS' SEPARATE STATEMENT OF FACTS - 2


3. Nelson & Kennard' s Skip- tracing "Waterfall.

5. LVNV retained N&K on April 18, 2008. The file

information described above was downloaded electronically into

Y&K' s database. Declaration of Robert Scott Kennard, 772 through

6.

6 . Nelson & Kennard maintains processes and procedures

reasonably adapted to avoid the filing of Summons and Complaints in

incorrect jurisdictions or venues. There is no utility or

3dvantage to Nelson & Kennard or its client by filing in an

incorrect jurisdiction or venue. To the contrary, such filings

zreate unnecessary expense, litigation and risk with no

zorresponding utility. Declaration of Robert Scott Kennard, 742.

7 . Prior to suit, in all cases, Nelson & Kennard engages in

3n evaluation and verification process to ensure accounts are suit

dorthy and that service of process may be lawfully obtained. These

?recesses and procedures include the initial use of correspondence

through the United States Post Office to verify addresses.

Declaration of Robert Scott Kennard, 743.

8. Nelson & Kennard maintains clerical staff whose sole

function is to process and update incoming returned mail and

forwarding orders on a daily basis. Declaration of Robert Scott

Kennard, 744.

9. In addition, Nelson & Kennard employs personnel

responsible for the evaluation of the suit worthiness of an account

and such personnel all have subscription database tools available



to them including full internet access, Accurint, Experian

Collection Advantage and the National Change of Address database

through Focus One. Declaration of Robert Scott Kennard, 745.

10. The undersigned respectfully submits that the above-

outlined processes and procedures are and were reasonably designed

to avoid the filing of complaints in incorrect venues. Nelson &

Kennard is aware of no other data source which provides more

accurate information than the Accurint and Experian products and/or

the National Change of Address database maintained by the United

States Postal Service. Declaration of Robert Scott Kennard, 748.

11. As is its custom and practice, upon receipt of the file,

N&K forwarded it to LexisNexis who ran the file through their

bankruptcy database. This product/process is known as "Banko."

Banko compares the data provided to their existing database to

determine whether the consumer is currently or has previously filed

a bankruptcy which might affect the account. The "scrub" is an

overnight process. Data is exchanged daily by N&K with Banko.

Declaration of Robert Scott Kennard, y7.

12. On April 21, 2008 the Banko scrub reported a "hit"

(positive result) which provided information that Mr. Randall had

previously filed a Chapter 13 bankruptcy petition that was

dismissed on or about November 16, 2006. The scrub also returned

information concerning Mr. Randall's bankruptcy attorney. That

data was electronically loaded into N&K1s database. Declaration

of Robert Scott Kennard, 78.



13. On May 14, 2008, N&K sent correspondence compliant with

15 U.S.C. S1692g to attorney Brian Crozier in San Diego,

California. The letter was sent to Mr. Crozier because he was

disclosed as Mr. Randall's attorney from the Banko scrub.

Declaration of Robert Scott Kennard, y9.

14, Thereafter, account representative Ray Brown, employed by

N&K, telephoned Mr. Crozier's office to confirm the status of the

bankruptcy and Mr. Crozier's representation of Mr. Randall. Mr.

Crozier's office confirmed that Mr. Randall's bankruptcy petition

was dismissed on November 16, 2006 and that he no longer

represented Mr. Randall. Declaration of Robert Scott Kennard, y10.

15. The Galisteo address was provided to N&K at the time of

placement. Prior to attempting further communication, N&K invoked

its "waterfall" process by reviewing the LexisNexis product known

by the trade name "Accurint." Accurint is a compendium of records

derived from a myriad of sources and provides an output of "best

available" ranking of return data. Accurint is a "real time" on-

line accessible subscription database.' Declaration of Robert

Scott Kennard, yy6, 9 through 11.

16. N&Kfs review of Accurint's information provided confirmed

that the Galisteo address was the best address based upon the

1 N&K previously beta tested numerous other databases including

Merlin data, CBC Innovis, MasterFiles and others. Based on N&Kfs internal testing, Accurint has consistently produced the most accurate and contemporary data of all subscription resources tested.

DEFENDANTS' SEPARATE STATEMENT O F FACTS - 5


information available to it. Declaration o f Robert Scot t Kennard,

fl7 13 through 15 and 22.

17. In addition, and as part of N&Krs data "waterfall," on

July 10, 2008 N&K downloaded an Experian credit report. The

product to which N&K subscribes from Experian is its "Collection

Rdvantage" report. With the Collection Advantage product, N&K is

able to select relevant attributes from a credit report and

download that data into N&Krs database in a compatible format. One

of the attributes requested by N&K is the "best available address"

known to Experian. With respect to Mr. Randall, the best address

provided by Experian was the Galisteo address. Declaration o f

Robert Sco t t Kennard, 7716 through 19.

18. As the result of the foregoing, on July 28, 2008, N&K

mailed correspondence to Mr. Randall at the Galisteo address. On

August 7, 2008, the mail was returned with a handwritten note

scrawled on the face "not at this address." The distinction is

that the mail was not returned as a result of data provided by the

U.S. Postal Service's database. Rather, the note appeared to be

handwritten by an occupant. It is N&Kfs experience that these

handwritten notes (as opposed to encoded data received from the

U.S. Postal Service) is typically confirmation of the consumer's

residence in that it is usually the consumer who has written the

message on the envelope and returned it to N&K. Declaration o f

Robert Sco t t Kennard, 722.

DEFENDANTSr SEPARATE STATEMENT OF FACTS - 6


19. Based upon the foregoing, as of September, 2008, N&K had

five separate data points, all of which pointed to the Galisteo

address as the best address for Mr. Randall;

(1) Citibank provided address;

(2) Client provided address;

(3) No negative U.S. Postal Service address return at

the Galisteo address;

(4) A positive Accurint return, and;

(5) A positive Experian return.

Declaration of Robert Scott Kennard, yy 7 through 22 and 34.

C . N&K i n i t i a t e s the c o l l e c t i o n lawsui t .

20. On September 26, 2008, Robert Kennard, managing partner

of the law firm of Nelson & Kennard, reviewed the proposed

Complaint, the data described above and approved the matter for

suit in Riverside County based upon the presumptive validity of the

Galisteo address. Declaration of Robert Scott Kennard, 20

through 24.

21. After signing, the Summons and Complaint was dispatched

to N&Kfs agent for filing and service. Declaration of Robert Scott

Kennard, 724.

22. The Complaint was filed on October 10, 2008. Declaration




23. N&Kfs agent attempted service of process from October 28,

2008 through November 2, 2008. Declaration of Robert Scott

Kennard, 725.

24. On November 2, 2008, N&Kfs agent executed a "Not Found"

service return and the original thereof was filed with the

Riverside County Superior Court on December 12, 2008. Declaration


25. N&K then again evoked its skip-tracing resources. In

January 2009 both Accurint and Experian reported that Mr. Randall

was residing in Phoenix, Arizona as of November, 2008. Declaratior

of Robert Scott Kennard, 7729 through 31.

26. By February, 2009, the probable validity of the Arizona

address was thereafter confirmed by the United States Post Office

database. Declaration of Robert Scott Kennard, 7729 through 31.

27. Based upon the foregoing, on March 2, 2009 N&K caused the

collection lawsuit to be dismissed, without prejudice and the file

was closed and returned back to LVNV. Declaration of Robert Scott

Kennard, q32.

D . Randall's conduct.

28. At no time relevant did Mr. Randall notify Sears,

Citibank or LVNV of any change of address. Deposition of Randall

taken May 20, 2010 (hereinafter ''Deposition of RandallN), p . 36,

In . 12 through p. 37, In . 12; p. 62 In . 19 through p. 63, In . 1 4 .



29. Mr. Randall claims to have become aware of the collection

ll lawsuit in January of 2009 while searching the Riverside County Superior Court database. He downloaded a copy of the Complaint as

4

11 18, 12 and 13. 5

6

1 1 30. At no time did LVNV or N&K ever communicate with Mr.

a .pdf file. Deposition of Randall, p. 37, In. 20 throughp. 41,

In. 17; Randall's Interrogatory Responses dated May 28, 2010, Nos.

9 1 1 Randall. Deposition of Randall, p. 71, ins. 15 thorugh 22; I 10 Randall's Interrogatory Resposnes dated May 28, 2010, No. 5. I I l1 1 1 31. Mr. Randall moved to Arizona in September, 2008. I

1 c, Robert Scott Kennard, 736.

12

13

32. Prior to Phoenix, Arizona, Mr. Randall resided at 1851,

Deposition of Randall, p. 9, Ins. 3 through 8; Randall's

Interrogatory Responses dated May 28, 2010, No. 3; Declaration of

l7 l l 1451 or 151 Haymarket, Encintas, California 94024 (hereinafter 18 l/"~a~market") . Deposition of Randall, p. 9, in. 3 through p. 10, I l9 1 in. 18; p. 98, in. 8 through p. 98, in. 17; Randall's Interrogatory

20

2 1

22

2 6 1 ) ~esidential 's Response to Subpoena dated May 4, 2010; Declaration I

Responses dated May 28, 2010, Nos. 2 and 3; Declaration of Robert

Scott Kennard, 7735 through 39.

23

24

25

27 1 of Robert Scott Kennard, 7737 through 38.

33. Mr. Randall advised his Arizona landlord on an

Application for Rental on September 28, 2006 that he resided at

1851 Haymarket from October, 2006 through October, 2008. Equity



34. Conversely, Mr. Randall testified that he resided there

for only a period of three to four months prior to moving to

4rizona. Deposition of Randall, p. 9, I n . 3 through p. 10, In . 18;

Randall Is Interrogatory Responses dated May 28, 2010, Nos. 1, 2 ant

3.

35. Mr. Randall also provided his Arizona landlord with a

copy of his California driver's license which was current at the

time and listed Galisteo as his prior address. Deposition of

Randall taken May 20, 2010; Declaration of Robert Sco t t Kennard,

q41; Equity Resident ia l ' s Response t o Subpoena dated May 4, 2010.

36. Mr. Randall's Arizona landlord also obtained an

2stensible verification of Mr. Randall's residence at Haymarket.

The manager of the Haymarket property denies that Mr. Randall ever

resided at the Haymarket residence. Declaration of Robert Scot t

Kennard, 7739 through 40; Declaration of Chris T. Sprangers, p. 1,

In. 2 through p. 3, In . 18; Equity Residential 's Response to

Subpoena dated May 4, 2010.

37. On October 15, 2008, Mr. Randall obtained his personal

:redit report. Mr. Randall offered the report to establish that

Y & K and LVNV knew or should have known that they had purposely

filed suit in an incorrect venue. The credit report contained

several addresses including the Galisteo address but no where

discloses the Haymarket address which is the address Mr. Randall

claimed to be his address at the time the complaint was filed.

Deposition of Randall, p. 50, In . 9 through p. 52, I n . 23;



IIMey 28, 2010, No. 13; Declaration of Robert Scott Kennard, q62.

1 Randall's Responses to Request for Production of Documents dated

1 1 N&K and LVNV knew or should have known that they had purposely

3

4

5

1 1 filed suit in an incorrect venue. The credit report contained

38. On June 12, 2009, Mr. Randall obtained his personal

credit report. Mr. Randall offered the report to establish that

1 1 several addresses including the Galisteo address but no where 9 discloses the Haymarket address which is the address Mr. Randall I I

lo llclaimed to be his address at the time the complaint was filed.

llDeposition of Randall, p. 50, in. 9 through p. 52, in. 23;

l2 1 1 Randall's Responses to Request for Production of Documents dated

17 Plaintiff's current address in the state of Arizona as that was not I I

13

14

l8 llhis address until, at the earliest, September, 2008. Deposition of

May 28, 2010, No. 13; Declaration of Robert Scott Kennard, 762.

1 1 Randall, p. 50, in. 19 through p. 52, in. 23; Randall's Responses

20 1 1 to Request for P E O ~ Z Z C ~ ~ O ~ of Documents dated Nay 28, 2010, No. 13;

I I Declaration of Robert Scott Kennard, 762. 22

23 II 40. Notwithstanding the allegations of his Complaint filed

24 1 1 February 25, 2009, on May 20, 2010, Mr. Randall acknowledged that 25 he was never served with the California state court Summons & I I

28 I1 communicated with any third party concerning his obligation to 26

27

I I DEFENDANTS' SEPARATE STATEMENT OF FACTS - 11

Complaint and that N&K never filed or published a proof of service

which so reported. Mr. Randall acknowledged N&K never improperly


LVNV. Mr. Randall acknowledged that at no time did N&K ever

attempt to or obtain a default judgment in the California state

court litigation. Mr. Randall is aware of no evidence adduced that

N&K knowingly and intentionally brought legal action in a venue

outside the judicial district where Mr. Randall resided at the time

legal action commenced. Deposition of Randall, p. 78, I n . 13

through p. 98, In . 17; Randall 's Responses t o Request f o r

Production of Documents Nos. 20, 21, 22 and 23; Randall 's

Interrogatory Responses dated May 28, 2010, Nos. 5 through 20;

Randall 's Motion f o r Summary Judgment, p. 1, pa r . 23 through 27.

4 1 . On May 26, 2010 Mr. Randall requested N&K and LVNV's

stipulation to amend his Complaint. The request was declined.

Defendants indicated that Mr. Randall should withdraw the conceded

claims. To date, Mr. Randall has not attempted to amend his

Complaint nor has he given notice of withdrawal of those conceded

claims, other than on page one of his Motion for Summary Judgment.

Declaration o f Robert Sco t t Kennard, 749 through 52.

/ / /

/ / /

/ / /

DEFENDANTS' SEPARATE STATEMENT O F FACTS - 1 2


37. Prior to responding to the Complaint herein, between

March 20, 2009 and May 28, 2009, LVNV and N&K voluntarily disclosed

all relevant information available to them to demonstrate the lack

of veracity of Plaintiff's Complaint. Notwithstanding, Plaintiff

persisted with his litigation unabated until he conceded that the

majority of his claims and allegations of fact as untrue upon the

filing of his Motion for Summary Judgment. Declarat ion o f Robert

Sco t t Kennard, 7753 through 6 0 .

Respectfully Submitted,

/ s / L9 KAr1 S,~-XnrnrA

Dated: 08/09/10 By : ROBERT SCOTT KENNARD



RECEIVED FRIDAY 2/27/2015 9:25:49 AM 13136617

FALONI & ASSOCIATES, LLC DAVID A. FALONI , ESQ . - NJ ATTORNEY ID n 015371995 165 PASSAIC AVE . SUITE 301B FAIRFIELD , NJ 07004 (973)226- 2525

FILED Feb 27, 2015

ATTORNEYS FOR PLAINTIFF SUPERIOR COURT OF NEW JERSEY

LAW DIVISION : PASSAIC COUNTY

SPECIAL CIVIL PART

DOCKET NO . DC-001767-15

LVNV FUNDING LLC , as Assignee of Credit One Bank , N. A. Plaintiff

vs . COMPLAINT ON CONTRACT

Victoria Lopez Defendant (s)

LVNV FUNDING LLC , whose business address is 55 Beattie Place , GREENVILLE SC 29601 , complaining of the defendant says that :

1 . Defendant is indebted to the original creditor , LVNV Funding LLC , in the amount of $1 , 000 . 48 after failing to make agreed upon payments on his/her credit card .

2 . Plaintiff received the right title and interest to this account through an assignment of a debt for consideration . The Chain of Title , last four digits of the original account number , the last four digits of the Defendant ' s social security number (if known) are attached to this complaint as Exhibit A.

3. The Defendant defaulted under the terms of the agreement by failing to pay despite the demand for which has been made but refused . Plaintiff as assignee is seeking the amount due and owing as an account stated and/or book account .

4 . There is now due and owing to Plaintiff the sum of $1 , 010 . 48 plus costs of suit .

WHEREFORE , Plaintiff demands judgment as alleged together with interest from the aforesaid date , and all costs of suit .

CERTIFICATION I certify that che above matter in controversy is not the subject

of any other court action or arbitration proceeding now pending or contemplated, and that no other parties should be joined in this action . I certify that confidential personal identifiers have been redacted from documents now submitted to the court , and will be

Case 2:16-cv-01117-SDW-SCM Document 19-2 Filed 04/27/16 Page 1 of 26 PageID: 138

redacted from all documents submiLLed in the future in accordance with Rule 1 : 38- 7(b) .

Dated : february 25 , 2015

DEfENDANT ' S ADDRESS file No . RES44733 Victoria Lopez 22 Taft Ave Woodland Park NJ 07424 - 2839

ADDRESS Of THE COURT PASSAIC COUNTY SPECIAL CIVIL PART 71 HAMILTON STREET PATERSON , NJ 07505- 2017 973/247 - 8261

FALONI & ASSOCIATES , LLC

a/'Dadd A . ?abmi 'O/W'l'O A . 7AL01t1. &s:z.


ACCOUNT SUMMARY REPORT 211812015 5:00:17 PM

This accoum summary has been prepared by Resuraem Capiral Services on bet1alf of LVNV Funding LLC. fl is not a credit card or other account s tatemenc from the original creditor.

Borrower Information II Current Account Information

t~ame: './ICTORlt.. LOPEZ

Address: 22 Taft t..ve

City: '.":oodland Parr~

State: NJ

Zip Cod e: 07..\2..\ -2839

Principal

Interest

l.l iscel laneous Costs

Total

Owner L'·l~4 "i Funding LLC

Resurgent Reference# 348562424

Original Creditor Credit One Banf:. NA.

Account tlumber XX:~XX.\X..XXX.X.X662f.

Date of Last Payment 03/02/201 1

Current Balance Summary

Owed

:ii 1.061.48

S9.07

S39.00

S1 .109.55

Collected

$61 00

$39.00

S100.00

Ba lance

S1 000 ..\8

$9.07

S1.009.55

•• ••The current balance due on this account is: $1 ,009.55

Br:cousr: ;nt:!r:!st. paymr:nts. credits, and perm1ssib1'e ch argr:s con co,..tinuc to COtJS:: th e occotJnt boloncr? to •;ory from

do;.-- to dov. authori!cd persons mov contact us a t 1-SSS-665-03 7-J to obto ;n up-to-do t.: bo1'once information

Recent Payment Transactions

Transaction Date Desc ription Amount

03.102/2011 Principal Pa!-ment S26 .8 1

03i02/20 11 Intere st Payment S34 19

03/02.120 11 Cost Pa}ment S39 00

Total Paid: $100.00

Page 1 of 2


ACCOUNT SUMMARY REPORT

211812015 5:00:17 PM

Historical Account Information

The onginal creditor for this account was:

The ongination date with original creditor was:

The account charge-off date was:

The account charge-off amount was:

The account was acquired on or about:

The account was acquired from:

The account balance at time of acquisition:

Credit One Banr.. N.t·.

10/1312006

12/19.12008

$1 .061.48

01/14.12009

l;IHC Recei·vables. LLC

$1.061.48

Tli•s commun1car1on •s from a ctebr coi':ecror anct r1;1s •s an arrempt ro co,'i'ecr a de.?r :.n:; ,nformar•on o:;ra.·ned 1;·;»i' :;e usect for mar po..;rpose

Page 2 of 2


AFFIDAVIT OF TRANSFER

I am an Authorized Representative for Cred it One Bank NA and hereby certify as follows :

I. I am of sound mind and with full authority capable of making t his affidavit. I have personal knowledge of the method and manner by which Credit One Bank NA ("Credit One" ) creates and maintains its normal business books and records, including computer records of its credit accounts and their subsequent transfer to MHC Receivables LLC.

2. All receivables originated by Credit One are transferred to MHC Rece ivables, LLC ("MHC") on a dai ly basis (the "Transfers"). Thereafter, Credit One maintains servicing and records custodian responsib ilities for the Transfers.

3. The Transfers include the abili ty of MHC to sell the transferred receivables without fu rthe r approval by Credit One or any other person.

I certify under t he pena lty of perjury that the foregoing is true and correct.

Further Affiant Sayeth Not.

Credit One Bank NA

Sign4?~ Print: Michael Frazier

Title: Portfolio Servi ces Supervisor __ _

Date: _07 /19/2010 ______ _

State of _Nevada _ ___ _

County of_County of Clark_

Subscribed and swom to befoce me this j "!~av of~· 2~10 \

( Notary

'- ····- y commission expires: 'S 1;2.\2-)-. Q. "7 j 9..() ) /

•

JEAN SMITH Notary Public, State of Nevada Appointment No. 08-6469-1

My Appt. Explru Sep 27, 2011


ASS IGNMENT OF /\CCOU>!TS AN D Hl l.L OF SALE

M H c: Rece ivables. I. LC c·se l l<:r"), for val uc received, tra ns IC.: rs, SC 11 s, assigns, conveys, grants and deli vers lo Sherman Orig inator I.LC ('·Buyer"). \vho subs1:qucntl y transfers to LVl\V Funding U.C ( .. Subsequent JJuyer"). all ri ght, tit le and interest in and lo (i) Seller' s unset.:ured consumer ncdi t card acrnun ts whkh an; desc rihed on computer tiles fu rni shed by S<: lkr to 13Llyer in connec tion herewi th ; and (ii) ull proceeds or such accounts (each, an '·A<:counl'') ulh:r the d ose or business on January 14, 2009.

This /\ssignmenl is subject to the terms of the Agreement fo r the Sale and Purc hase or Chargcoff Rcc.:civablc.s dated /\ ugusl I 4, 2007 .. the first Amendment dated .January 14, 2008, and the Second Amendment dated February 19. 2008, bet\.vccn the parties hereto (t he "Agreement'·). without rcpn:sl!nlat ilms and warranties of any kind or character except as set forth therein.

DATE: 1/14/09

MHC Receivables, LLC

By:

S herman Originator LLC


Declaration of Account Transfer

Sherman Originator LLC ("SOLLC"), without recourse, to the extent permitted by applicable law, transferred, sold, assigned, conveyed, granted and de livered to L VNV Funding LLC ("L VNV") all of its right, title and interest in and to the receivables and other assets (the " Assets") identified on Exhibit A, in the Receivable File dated January 09, 2009 delivered by MHC Receivables, LLC on January 14, 2009 for purchase by SOLLC on January 14, 2009. The transfer of the Assets included electronically stored business records.

Sherman Originator LLC

a Delaware Limited Liability Company

L VNY Funding LLC a Delaware Limited Liability Company

l:3 y: -Z::......-?"'"- .....-<:2- ==-C7 ~ Name: Les Gutierrez~ Title: Authorized Representa tive


Receivables File 01.14.09

Transfer Group

110657

Portfolio

12443

Exhibit A

Transfer Batch

NIA


SPECIAL CIVIL PART SUMMONS AND RETURN OF SERVICE - PAGE 2 of 2

P laintifT or P laint ifrs Attorney Information: Name: David Faloni Jr. Address: Fa loni & Associates Lie 165 Passa ic AYe Suite 30 lb Fairfield, NJ 07004-Telephone No.: (973) 226-2525

Credit One Bank, N.A.

versus

Victoria Lopez

P laintiff(s)

Defend ant(s)

Defendant(s) Information: Name, Address & Phone

Victoria Lopez 22 Taft Ave Woodland Park, NJ 07424

Date Served: 03/02/2015

Demand Amount: Filing Fee: Service Fee: Attorney's Fees TOTAL

1000.48 50.00 7.00 0.00

1057.48

SUPERIOR COURT OF NEW JERSEY

LAW DIVISION, SPECIAL CIVIL PART

PASSAIC COUNTY 77 Hamilton Street Paterson, NJ 07505-0 17 (973) 247-8241

Docket Number: DC-001767-15 (to be provided by the court)

C ivil Action

SUMMONS

Contract_ Reg

RETUR.t'I OF SERVICE IF SERVED BY COURT OFFICER (For Court Use Only)

Docket Number: ____________ _

Date: Time: _____ WM WF ___ ___cBM. ___ BF OTHER. __ _

HT __ WT __ AGE HAIR __ ---'!vfUSTACHE BEARD GLASSES __ _

NAME: ________________ RELATIONSHIP: _____________ _

Description of Premises: ------------------ - -------------

I hereby ce1iif-y the above to be true and accurate:

Special Civ il Pati Officer


'ASSAIC SPECIAL CIVIL PART ·7 HAMILTON STREET 'ATERSON NJ 07505

973) 24 7- 8239 :ASE NUMBER :

PAS OC- 001767 - 15 .VNV FUNDING LLC

vs .OPEZ VICTORIA

CV0210

, SUMMONS WAS MAILED TO )EFENDANT (S) ON 03- 03- 15 FOR :ASE DC- 001767 - 15 . UNLESS >THERWISE NOTIFIED, THIS CASE IILL DEFAULT ON 04 - 10- 20 15 .

FEBRUARY 27 , 2015

DAVI D A FALONI JR-FALONl & ASSOCIATES LLC 1 65 PASSAIC AVE STE 301B

FAIRFIELD NJ

07004


RECEIVED MONDAY 10/12/201511:16:46 AM 14023858

FALONI & ASSOCIATES LLC DAVID A. FALONI , ESQ . - NJ ATTORNEY ID ff 015371995 165 PASSAIC AVENUE , SUITE 3018 FAIRFIELD , NJ 07004 973- 226- 2525 ATTORNEYS FOR PLAINTIFF

ATTACHED IS OUR JUDGEMENT FOR :

LVNV FUNDING LLC PLAINTIFF

vs .

Victoria Lopez DEFENDANT(s)

BEARING FILE NO .: RES44733

SUPERIOR COURT OF NEW JERSEY LAW DIVISION : PASSAIC COUNTY SPECIAL CIVIL PART

DOCKET NO . DC-001767-15

SHOULD YOU HAVE ANY QUESTIONS OR NEED ADDITIONAL I NFORMATION PLEASE FEEL FREE TO CONTACT JAMIE AT 973 - 226- 2525 EXT . 164 .

THANK YOU.


FALONI & ASSOCIATES LLC DAVID A. fALON I , ESQ . - NJ ATTORNEY ID # 0 15371 995 165 PASSAIC AVENUE , SUITE 3018 fAIRfIELD , NJ 07004 973- 226- 2 525 ATTORNEYS f OR PLAI NTi ff RES44733 SUPERIOR COURT Of NEW JERSEY

LAW DIVISION : PASSAIC COUNTY SPECI AL CIVIL PART DOCKET NO . DC-00 1767-15

LVNV FUNDING LLC, As Assignee of Credit One Barile, N.A.

vs . Plaintiff Civil Action

CERTIFICATION OF ADDRESS SOURCE FOR SERVICE OF PROCESS

Victoria Lopez Defendant

D AVID A. F ALO NJ, of full age, certifies and says:

1. I am employed at the Law Offices of FALONJ & ASSOCIATES, LLC, attorneys for P laintiff, and I am familiar with the books, accounts and records herein, and I am fully authorized to make this Certification.

2. This Office represents the Plaintiff, L VNV FUNDING LLC, 111 connection with the above-captioned matter.

3 . At the time the Defendant's account was placed with our office, our client provided us with ce1iain infonn ation regarding its claim against the Defendant, including, but not limited to, the Defendant 's address.

4. The address at which the sununons and compla int was served was provided to us by our c lient or obtained through investigation, examination and/or review of our records, including inforn1ation supplied to us by our client, and/or conununication with the Defendant or third pariies.

5.From our contacts with Defendant, our client, and investigations, the Defendant is not an infant, minor, or mentally incompetent person.

I certify that the foregoing statements made by me are true to the best of my knowledge and be t ief and I am aware that if any of the statements are willfully fa lse I am subject to punishment.

Dated: October 9, 20 15

<t/VMU A. ?~ D AVID A. F ALONJ, ESQ. Attorney for plaintiff


FALONI & ASSOCIATES LLC DAVID A. FALON I , ESQ . - NJ ATTORNEY ID II 01 5371995 165 PASSAIC AVENUE, SUI TE 3018 FAIRFIELD , NJ 07004 973- 226- 2525 • AT TORNEYS FOR PLAI NTI FF R.ES44733

SUPERIOR COURT OF NEW JERSEY LAW DIVISION : PASSAIC COUNTY SPECIAL CIVIL PART DOCKET NO. DC-001767-15

LVNV FUNDING LLC, As Assignee of Credit One Bank, N.A.

vs . Plainti ff Civil Action

CERTIFICATION OF NON-MILITARY SERVICE

Victoria Lopez De f e ndant

DAVID A. F ALONI , of full age, certifies and says:

1. I am employed at the LAW OFFICES OF F ALONI & ASSOCIATES, LLC, attorneys for Plaintiff, and I am familiar with the books, accounts and records herein, and I am fully authorized to make this Ce1tification.

2. The Defendant is not currently on active duty in the military service of the United States or its allies.

3. The source of this information is (check all appropriate boxes)

[ ] a. A representative of this Office spoke with the Defendant or the Defendant's spouse.

[X] b. This Office made a written inquiry made to the United States Department of Defense Human Resources Activ ity Defense Manpower Data Center in Arlington, VA, the response to which is attached hereto.

[ ] c. Other (explain):

I ce1tify that the foregoing statements made by me are trne to the best of my knowledge and belief and I am aware that if any of the statements are willfully fal se I am subject to punishment.

Dated: October 9, 20 15

a/Vauid A, ?atoui DAVID A. FALONI, ESQ. Attorney for P laintiff


FALONI & ASSOCIATES, LLC 165 PASSAIC AVE SUITE 301B (973) 226-2525

L VNV Funding LLC

Plaintiff

Vs.

Victoria Lopez

Defendant

DOCKET NO: DC-001767-15

SPECIAL CIVIL PART OF NJ LAWDMSION COUNTY: PASSAIC

SPECIAL CIVIL PART

CIVIL ACTION Certification of Proof and Ownership of Account

Tbe undersigned, being of full age and duly sworn according to law, upon oath deposes und says as follows :

1. I am an authorized representative ofLVNV Funding LLC (hereafter the "Plaintiff"). I have personal knowledge regarding Plaintiffs creation and maintenance of its normal business records, including computer records of its credit accounts. This information was regularly and contemporaneously maintained during the course of the Plaintiff's business. I am authorized to execute this Certification on behalf of Plaintiff and the infonnation below is true and correct to the best of my knowledge, information and belief based on the business records of the account. If called as a witness, I can competently testi fy to the facts stated herein.

2. Based on the Plaintiff's business records, account 444 7962115496626 (hereafter the "Account") is the result of the extension of credi t to the Defendant by Credit One Bank, N.A. on or about 10/13/2006 (the "Date of Origination"). The account was then owned by and exclusively held by MHC Receivables, LLC. MHC Receivables, LLC later sold and/or assigned Portfolio 12443 , which included the Defendant's Account, to Plaiutifl's predecessor-in-interest on Jan 14, 2009 (the "Date of Assignment"). Thereafter, all ownership rights, without impairment and without exception, were assigned to, transferred to and became vested in Plain tiff, including the right to collect the purchased balance owing of $1,000.48.

3. The above stated amount is due by the Defendant to the Plaintiff and all just and lawful offsets, payments and credits to the account have been allowed. Demand for payment was made more than thirty days ago.

4. This claim is not based upon writ of attachment, capias ad respondendum, replevin or claims based directly or indirectly upon the sale of a chattel, wherein a chattel bas been repossessed peaceably or by legal process.

5. To the best of my knowledge and belief, the defendant is not a minor or mentally incapacitated person.

6. The source for Defendant's address used for service of the Swnmons and Complaint is the information contained in the Plaintiff's business records maintained in its normal course of business.

I certify that the foregoing statements made by me are true. I am aware Lhat if any of the foregoing statements made by me are willfully false, I am subject to punishment.

The foregoing ailldavit was signed to and subscri bed before me this Thursday, S t bcr I 0, 2015

RES44733

Ill llllllllllllllllllllllllllllllll lllllllllllllllllllllllllllllllll II Ill 348562424

L VNV Funding LLC

Matt Summers Thursday, September 10, 2015

--


FALONI & ASSOCIATES, LLC 165 PASSAIC AVE SUITE 301B (973) 226-2525

L VNV Funding LLC

Plaintiff

Vs.

Victoria Lopez

Defendant

DOCKET NO: DC-001767-15

SPECIAL CIVIL PART OF NJ LAW DIVISION COUNTY: PASSAIC

SPECIAL CIVIL PART

CIVIL ACTION Certification of Assig11111e11t of Claim

I am offull age, being duly sworn according to law, upon oath deposes and says and as Authorized Representative

for LVNV FW1ding LLC (hereafter the "Plaintiff') hereby certi fies as follows:

1. I have personal knowledge regarding P laintiff's creation nnd maintenance of its normal business records, including computer records of its credit accounts. This information was regularly and contemporaneously maintained during the course of the Plaintiff's business. I am authorized to execute this Certification on behalf of Plaintiff and the information below is true and correct to the best of my knowledge, information and belief based on the business records of the accoWlt. If called as a witness, I can competently testify to the facts stated herein.

2. The original creditor in the above referenced matter is Credit One Bank, N.A.

3. The original account number in the above referenced matter ends in 6626

4 . The defendant's social security number ends in 505

5. The current owner is LVNV Funding LLC

6. Plantifl's business records indicate that owners of the Account include:

MHC Receivables, LLC Sherman Originator LLC L VNV Funding LLC

I certify that the foregoing statements made by me are true. I am aware that if any of the foregoing statements made by me are willfully false, I nm subject to punishment.

L VNV Funding LLC

Taylor w - Authorized Represeutative

RES44733 Wednesday, September 02, 2015

Ill I I llll lllll I I II II Ill I Ill I Ill llll II I Ill Ill I II lllllll llllll I I II II I I II Ill 348562424


This account summary has been prepared by Resumenr CAJpftal Services on be/1aff or L VNV Funding LLC. tr is nor a credir card or other accounc sraremenr from the original crediror.

Name:

Address:

Ctfy:

State:

Zip Code:

Borr.ower" lnformation

VICTORLA. LOPEZ

22 Taft Ave

Woodland Park

NJ

07424-2839

Principal

Interest

Miscellaneous Costs

Total

II Current Account Information

Owner LVNV Funding LLC

'Resurgent Reference# 3485t>2424

Ori:!)inal Credttor

Account Number

Date of Last Payment

Current Balance Summary

Owed Collected

$1,061.48 $61.00

S9.07

$39.00 $39.00

$1,10955 $100.00

Cred.lt One Bank, N.A

XXXXXXXXXXXX5626

0310212011

Balance

$1 ,000.48

$9.07

$1 ,009.55

..--.r The current balance dae on this account is: $1 ,009.55 .........

Because interest payments, credits, and permissible charges can continue to cause the oc-eount balance to vary from day to day, authorized persons.may cont.act us at .1-888-665-0374 to obtain up-to-date balance Jnformaaon.

Recent Payment Transactions

Transaction Date Description Amount

03/0212011 Principal Payment 526.81

03/0212011 Interest Payment S34.19

03.102120"11 Cost Payment $39.00

Total Paid~ $100.00

Page 1 of2


Historical Account Information

The ortginal creditor for this account was:

The origination ·date with original creditor was:

The account charge.off date was:

The acco-unt charge.off amount was: The account was acquired on or about

Ttie account was acquired from;

The account balance at time of acqul.sition:

Credit One Bank, N.A.

10/13/2006

12/19/2008

$1,061.48

01/14/2009

MHC Receivables, UC

$1 ,061.48

Trris commtmicatfon-ls from a debt co/rector and this.is en attempt to collect a debt Any Information obtained ·1~·/I/ be used fort/1at purpose.

Page 2 of 2


VISA Account 4447 9621 1549 6626 Customer Service: 877-825-3242

2417 Online Account Access: www.CreditOnoBank.com

Send Inquiries To: CREDIT ONE BANK P.O. BOX 98873 LAS VEGAS, NV 89193

Statement Closing Date Total Credit Line Available For Purchases Available For Cash New Balance $1,061.48 12118/08 $700.00 $0.00 $0.00

Payment Due Date 0 1/12109

Amount Over Credit Line (OCL) $361.48

Amount Past Due $235.00

Amount Due This Pertod $861.48

Minimum Payment Due $1,061.48

To avoid OCL fees, pay the greater of the "Amount OCL" or the "Minimum Paymen t Due" by U1c due date.

Trans Date

12/18 12/18

Post Date

12/18 12/18

A c c o u nt Summary

Reference Number Activity Since l ast Statement

S ERVICE CHARGE CLOSED ACCT. MAINT FEE ' FINANCE CHARGE' LATE FEE

•FINANCE CHARGE' PURCHASES $14.56 CASH ADVANCE S0.00

YOUR ACCOUNT IS SCHEDULED TO BE C HARGED OFF. THE BALANCE WILL BE DUE IN FULL. CALL (888)

729-6274.

YOUR ACCOUNT IS CURRENTLY CLOSED.

Previous (+)Purchases, Fees, (-) Payments & Balance Charges & Advances Credits

$1,008.92 $35.00 $0.00

(+) FINANCE CHARGE included In APR

$17.56

Amount

3.00 35.00 14.56

(=)New Balance

$1,061.48

Da~s This Blllin9 Period: 30

Rate S um mary Average Dally Monthly Periodic Corresponding ANNUAL PERCENTAGE

Balance Rate APR RATE (A PR)

PURCHASES $924.23 1.575% 18.90% 22.80% CASH ADVANCES $0.00 1.992% 23.90% 23.90%

SEND PAYMENTS TO: P.O. BOX 60500 CITY OF INDUSTRY, CA 91716- 0500

Make checi< or money order payable In U.S. dollars an a U.S. bank 10 Crodil One Bank. lncludo account number on check or money order. No cosh plcuse.

5385 0002 HBG 7 18 081218 C X Page J of J 5727 9620 CH82 OJOU5385 4 770

D

Payment Due Data Yoor Now Balance

01/12/09 $1,061 .48

For address and telephone changes, please check the box and c..-omplele reverse side.

~REQIT gNE BANK c9Tv06F 9~88sTRY CA 91716- 0500

ll1 l11 11 1l ll 11 1l11 1ll1ll11ll, ,,, 1,1.11 ... 11 ••• 11 •• • 11 •• ,, ,, 111

Your ACCO\Jnl Nwnbcr

4447 9621 1549 6626

~inim.Jm Payment Duo Ploaso Entor Amount Of Payrnont Endosed

$1 ,061.48 $

To ensure proper credit, please return this portion with your payment. Please wrtte your account niimber on your check, mado poyoblo to CREDIT ONE BANK. Wo may process your payment electronically. See payments paragraph on back.

VICT~RI A hOP EZ Qtst ~AT~R~ON NJ 07424-2839

4770

11 1 ... 1 ••• 1.1 •• 1 •• 1.1, 1 •• 1 •• 1.11 •• 1 ••• 11.1.1 .... 1.1 •• 1.1 1. •• 11

01 0614 8 01061 48 44 47962115 49 6626 2


Depariment of Defense Manpower Data Center

. S.ta n.i.1 Report P111r:ruant 1o Se-rvic.cff1trubers Civil Re.Jkf Act

Last Name: LOPEZ

First Name: VICTORIA

Middle Name:

Active Duty Status As Of: Sep-04-2015

, ..

NA I NA · ··' · .• ·.:.:· .· r-· ... .. ':. . ' · . · :-·; --~~." ' • "! • ' '• ..... •

THc ,U!tnOnSO ronoow;: \t.'"iitldt.Adubli' Odlve dUty ~l"'all.tS bnsod on· 11\tl AciVo·OOlv.Statcs Dato

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Upon ooarching the data banks of the Oepar1ment of Defens~ ~~~~~~r b·~ia •ten1~r . :~-~~~-:~:;~~ l~formatlon that you provldod. the above is the stetuo of

the lnd vldual on the active duty status date as to oil branches of the uriid~d-.-s~rJ[de;:·()\rmy·.· Navy, Marino Corps , Air Force. NOAA. Public Health, and

Coast Guard). Thi~ status Includes lnlormaUon on a Serviccmember or hls/her U'lit recolvlng notification of future orders to report for Active DlJ!Y.

Mary M. Snavely-Dixon, Director

D~partmont of Defense • Manpower Data Center

4800 Mark Center Drive, Suite 04E25

Arlington, VA 22350

File #: RES44733


'ASSAIC SPECIAL CIVIL PART '7 HAMILTON STREET 'ATERSON NJ 07505

973) 247 - 8239 CV0285

:ASE NUMBER : PAS D:- 001767 - 15

:REDITOR (S) : LVNV FUNDING LLC >EBTORS ( S) : LOPEZ V 'J NUMBER : 006706- 15 :FFECTIVE DATE : 10/12/2015 ~OUNT : $ 1000 . 48 :OS'I' : ,TTORNE'!' FEE : lTHER COST :

57 . 00 35 . 01

0 . 00 :REDITS : 0 . 00 fUDGMENT TOTAL : $ 1092 . 49

OCTOB ER 13, 2015

DAVID A FALONI JR-FALONI & ASSOCIATES LLC 165 ?ASSAIC AVE STE 301B

!?AIRFIELD NJ

07004


RECEIVED THURSDAY 2125/201 6 12:50:15 PM 14538502

FALONI & ASSOCIATES LLC DAVI D A. FALONI , ESQ . - NJ ATTORNEY ID fl 015371995 165 PASSAIC AVENUE , SUITE 30 18 FAIRFIELD, NJ 07004 973- 226- 2525 ATTORNEYS FOR PLAINTIFF

SUPERIOR COURT OF NEW JERSEY LAW DIVISION : PASSAIC COUNTY SPECIAL CIVIL PART

DOCKET NO . OC-00 1767-15

PLEASE CHARGE OUR COLLATERAL ACCOUNT 11142101

ATTACHED IS OUR BANK LEVY FOR :

LVNV FUNDING LLC PLAINTI FF

vs .

Victoria Lopez DEFENDANT

BEARING FILE NO .: RES44733

SHOULD YOU HAVE ANY QUESTIONS OR NEED ADDITIONAL INFORMATION PLEASE FEEL FREE TO CONTACT MACK(EXT . 156)

THANK YOU .


DAVID A. FALONI, ESQ. -NJ ATTORNEY TD # 015371995 ST A TE OF NEW JERSEY SUPERJOR COURT, LAW DMSION PASSAIC COUNTY DOCKET NO. DC-001767-15

EXECUDON AGAINST GOODS AND CHA 11ELS FITE NO. RES44733

L VNV FUNDING LLC, As Assignee of Credit One Banlc, N.A. Plaintiff

vs.

Victoria Lopez

Defendant(s)

TO: SHERIFF OF SUPERIOR COURT

YOU ARE ORDERED to levy on the p rope1iy of filly of the Defendants designated herein; yom actions may .include, but are not limited to, taking into possession any motor vehicle(s) owned by any of the Defendants, taking possession of any inveuto1y and/or machinery, cash, bank accounts, jeweliy, electronic devices, fur coats, musical instruments, 'stock certificates, securities, notes, rents, accounts receivable, or any item(s) which may be sold pursuant to statute to satisfy th is execution in full or in prut All proceeds are to be paid to the Cornt Officer who shall pay them to Plaintiff or the attorney for the Plaintiff, or, if this is not possible, to the Court. This order for execution shall be valid for one year from this date.

Judgment Date Judgment Amount Costs and Fees Subsequent Costs Total

October 12, 2015 $1,000.48 $92.01 $.00

New Credits on this Writ Credits from Prior Writs Interest from Prior Writs New Interest Prev Cost & Mileage New Costs & Mileage Subtotal Court Officer Fee

TOT AL DUE THIS DA TE

$1,092.49 $.00 $ $ $ 0.~6 $

$39.00 $ I l 3;2 .0 S-

I

$ ri3,80

$ f, :J.4 5:J5'"

Please charge our collateral accou11t #142101 Date : February 12, 2016

Property to be Levied Upon and Location of Saine: TD BANK 155 JEFFERSON ST PASSAIC NJ 07055

Plaintiffs Attorney and Address: FALONI &ASSOCIATES, LLC J 65 PASSAIC A VE. SUITE 301B FAIRFIELD, NJ 07004 (973) 226-2525

Date: ~~~~~~~~~~~~~~~~~

Clerk of the Superior

I return this execution to the Court

Unsatisfied ~~-~---~~~~-

( ) unsatisfied ( ) partially satisfied

Amount collected $ _________ _

Fee Deducted $ -~~~~~~~~~

Amt Paid to Atty $ _______ _

Date: -~~~~~~~~~~

Sheriff of the Superior Court

Defendant's Address : Victoria Lopez 161 New St Woodland Park NJ 07424-3341


FALONI & ASSOCIATES LLC 165 PASSAIC AVE., SUITE 301B

FAIRFIELD, NJ 07004 973-226-2525

POST JUDGMENT INTEREST CALCULATOR Printed from Lawyers Diary and Manual

LVNV FUNDING v. VICTORIA LOPEZ PASSAIC COUNTY Docket No.: DC-001767-15 File No.: RES44733 Citation: R. 4:42-11(a)(ii)

Judgment Date: Amount of Judgment: Less Any Credits Total Judgment Amount:

10/12/2015 $1,000.48

$0.00 $1 ,000.48

~~~:J:~m; I~~~~~lJJfl~ll~~11i~~\~[~1ffil~~i~;f~filr~~~~~~~~ml~!i 2015 10/12/2015 12/31/2015 81 0.2500% $0.01 $0.56 $1,001.04 2016 1/1/2016 2/12/2016 43 0.2500% $0.00 $0.00 $1,001.04

Total Interest Due $0.56

Judgement Costs $92.01

Total Judgement Due $1,093.05


DOCKET NO . PAS DC-001767-15 JUDGMENT NO. : PAS VJ-006706-15 WRIT NUMBER : 001 ISSUED 03/03/16 EXPIRATION DATE : 03/03/18

LVNV FUNDill'G LLC , PLAINTIFF

- vs -VICTORIA LOPEZ , DEFENDANT

ADDRESS OF FIRST DEBTOR: 161 NEW ST WOODLAND PARK NJ 07424-3341

TO: RALPH X. TRIONFO COURT OFFICER OF THE SPECIAL CIVIL PART

SUPERIOR COURT OF NEW JERSEY SPECIAL CIVIL PART PASSAIC COUNTY STATE OF NEW JERSEY

-- EXECUTION AGAINST GOODS AND CHATTELS --

DEBTORS : VICTORIA LOPEZ

YOU ARE ORDERED to levy on the property of any of the debtors designated herein ; your actions may include , but are not limited to , taking into possession any motor vehicle(s) owned by any of the debtors , taking possession of any inventory and/ or machinery , cash , bank accounts , jewelry , electronic devices , fur coats , musical instruments , stock certificates , securities, notes , rents , accounts rece ivable , or any item(s) which may be sold pursuant to statute to satisfy this execution in full or in part . Any levy pursuant to this writ shall exclude (1) all funds in an account of the debtor with a bank or other financial institution, if all deposits into the account during the 90 days innnediately prior to service of the writ were electronic deposits , made on a recurring basis , of funds identifiable by the bank o r other financial institution as exempt from execution, levy or attachment under New Jersey or federal law, and (2) all funds deposited electronically in an account of the debtor with a bank or other financial institution during the two months innnediately prior to the account review undertaken by the bank or other financial institution in response to the writ that are identifiable by the bank or other financial institution as exempt from execution , levy or attachment unde r New Jersey or federal law. Al.l proceeds are to be paid to the court officer who shall pay them to the creditor or the attorney for the creditor , or , if this is not possible, to the court . This writ of execution shall EXPIRE on 03 / 03/ 18.

Local police departments are authorized and requeste d to provid e assistance , if needed , to the officer executing this writ . This does not authorize entry to a residence by force unless specifically directed by court order .

J\ldgment Date . . ...... . .... . . J\ldgment Award ............. . Court Cos ts & Statutory

Atty Fees .. ... .... ....... . Total J\ldgment Amount ...... . Interest from Prior Writs .. . Costs from Prior Writs ..... . Subtotal A ............. . ... . Credits from Prior Writs ... . Subtotal B . ....... . .. . .. ... . New Miscellaneous Costs .... . New Interest on this Writ .. . New Credits on this Writ ... . Execution Fees & Mileage .. . . Subtotal C .... . . ....... . ... . Court Officer Fee .......... . Total Due This Date ...... . . . Date: 03/ 03/2016

10/ 12/2015 $1 , 000 .48

$92.01 $1 , 092.49

$.00 $.00

$1 , 092.49 $.00

$1 , 092.49 $.00 $.56 $ . 00

$39 . 00 $1 , 1 32 . 05

$113 . 21 $1 ,245.26

Date : 03/ 07 /2016

Thomas F. Brogan

DAWN R. THOMAS , CLERK OF THE SPECIAL CIVIL PART

(Continued on following page)


DOCKET NO. PAS DC-001767-15 JUDGMENT NO.: PAS VJ-006706-15 WRIT NUMBER : 001 ISSUED 03/ 03/16 EXPIRATION DATE : 03/03/18

LVNV FUNDING LLC, PLAINTIFF

- vs -VICTORIA LOPEZ , DEFENDANT

ADDRESS OF FIRST DEBTOR: 161 NEW ST WOODLAND PARK NJ 07424-3341

Property to be Levied upon and Location of Same:

TD BANK 155 JEFFERSON ST PASSAIC NJ 07055

CREDITOR ' S ATTORNEY AND ADDRESS: DAVID A. FALONI JR. FALONI & ASSOCIATES LLC 165 PASSAIC AVE STE 301B FAIRFIELD NJ 07004

Tele phone: {973) 226-2525

SUPERIOR COURT OF NEW JERSEY SPECIAL CIVIL PART PASSAIC COUNTY STATE OF NEW JERSEY

-- EXECUTION AGAINST GOODS AND CHATTELS --

DEBTORS: VICTORIA LOPEZ

I RETURN this execution to the Court

satisfied ) Partly satisfied

Amount Collected . ... . ~~~~~~~~~~~

Fee Deducted ........ . ~~~~~~~~~~~

Amount Paid to Atty . ·~~~~~~~~~~~

Date :

court Officer


'ASSAIC SPECIAL CIVIL PAR~ ·7 HAMILTON STREET 'ATERSON NJ 07505

973) 24 7 - 82 11 CV0288

:ASE NUMBER : PAS DC- 001767 - 15 :REDITOR (S) : LVNV FUNDING LLC >EBTOR (S) : LOPEZ V IRIT NUMBER : 001 'YPE OF WRIT : WRIT :XPIRATION : 03/03/18 IRIT AMOUNT : $ 1092 . 49 :OS1'S & MILE : 3 9 . 00 :RE DI TS : 0 . 00 ,DD ' L COSTS : 0 . 56 :RT OFR COMM : 113 . 21 ;RAND TOTAL : $ 1 2 45 . 26 :RT OFR: TRIONFO R ,SSIGN DATE : 03/03/2016 :RT OFR PHONE : (973) 838 - 5031

MARCH 03 , 2016

DAVID A FALONI JRFALONI & ASSOCIATES LLC 165 PASSAIC AVE STE 3018

FAIRFIELD NJ

07004


UNITED STATES OF AMERICA

CONSUMER FINANCIAL PROTECTION BUREAU

ADMINISTRATIVE PROCEEDING

File No. 2016-CFPB-

In the Matter of:

FALONI &ASSOCIATES, LLC

CONSENT ORDER

The Consumer Financial Protection Bureau (Bureau) has reviewed the debt

collection practices of Faloni & Associates, LLC (Respondent, as defined below) and has

identified the following law violations: Respondent violated the Fair Debt Collection

Practices Act (FDCPA), 15 U.S.C. § 1692e, by using false, deceptive, and misleading

representations or means to collect consumer financial debt by altering Declarations to

change the date of execution or the balance owed on the debt, or both, and then filing

those Declarations in Collections Litigation in the New Jersey courts. Respondent's

conduct also violated the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C.

§§ 5531 and 5536. Under Sections 1053 and 1055 of the CFPA, 12 U.S.C. §§ 5563,5565,

the Bureau issues this Consent Order (Consent Order).

I

Jurisdiction

1. The Bureau has jurisdiction over this matter under sections 1053 and 1055 of

the CFPA, 12 U.S.C. §§ 5563 and 5565, and under the FDCPA, 15 U.S.C. § 1692.

1

2016-CFPB-0006 Document 1 Filed 02/23/2016 Page 1 of 19Case 2:16-cv-01117-SDW-SCM Document 19-3 Filed 04/27/16 Page 1 of 19 PageID: 164

chandlerj

Typewritten Text

chandlerj

Typewritten Text

chandlerj

Typewritten Text

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Typewritten Text

0006

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Typewritten Text

II

Stipulation

2. Respondent has executed a "Stipulation and Consent to the Issuance of a

Consent Order," dated February 9, 2016 (Stipulation), which is incorporated by

reference and is accepted by the Bureau. By this Stipulation, Respondent has

consented to the issuance of this Consent Order by the Bureau under sections

IOS3 and lOSS ofthe CFPA, 12 U.S.C. §§ ss63 and ss6s, without admitting or

denying any of the findings of fact or conclusions of law; except that

Respondent admits the facts necessary to establish the Bureau's jurisdiction

over Respondent and the subject matter of this action.

III

Definitions

3. The following definitions apply to this Consent Order:

a. "Account" means an extension of credit to a Consumer in the United States,

primarily for personal, family, or household purposes, and established or

maintained for a Consumer pursuant to a credit card program.

b. "Affected Consumers" are Consumers who were defendants in Collections

Litigation filed by Respondent on behalf of Citi identified in an order dated

June 10, 2014, entered by the Superior Court of New Jersey (Law Division

Mercer County) in In reApplication by Citibank, N A., Department Stores

National Bank, and CitiFinancial Servicing, LLC, to Take Curative Action in

Certain Pending Unsecured Consumer Debt Collection Actions, Docket No.:

L-3SS-14.

2


c. "Affiant" means any signatory to a Declaration, other than one signing solely

as a notary or witness to the act of signing, signing in his or her capacity as an

employee or agent of Citi.

d. "Citi" means Citibank, N.A., Department Stores National Bank, and

CitiFinancial Servicing, LLC and their predecessors, successors, and assigns,

individually, collectively, or in any combination.

e. "Collections Litigation" means attempts by Respondent, through judicial

processes in the State of New Jersey, to collect or establish a Consumer's

liability for a Debt allegedly owed to Citi. Collections Litigation does not

include processes or proceedings initiated by Respondent in bankruptcy or

probate matters involving a Consumer.

f. "Competent and Reliable Evidence" means documents and/or records created

by Citi in the ordinary course of business, which are capable of supporting a

finding for the proposition for which the evidence is offered, is true and

accurate, and which comport with applicable laws and court rules.

g. "Consumer" means any natural person obligated or allegedly obligated to pay

any Debt.

h. "Debt" means, coterminous with the meaning of "debt" as defined in the Fair

Debt Collection Practices Act, 15 U.S.C. § 1692a(5), any obligation or alleged

obligation of a Consumer to pay money arising out of a transaction in which

the money, property, insurance, or services which are the subject of the

transaction are primarily for personal, family, or household purposes,

whether or not such obligation has been reduced to judgment.

3


1. "Declaration" means any affidavit, sworn statement, certification of proof, or

declaration, whether made under penalty of perjury or otherwise signed by an

Affiant for purposes of affirming its accuracy and veracity, submitted to a

court by Respondent in a Collections Litigation matter for the purpose of

collecting a Debt, but does not include affidavits, sworn statements,

certifications of proof, or declarations signed by counsel based solely on

counsel's personal knowledge and not based on a review of Citi's books and

records (such as affidavits of counsel relating to service of process, extensions

of time, or fee petitions).

J· "Effective Date" means the date on which the Consent Order is issued.

k. "Enforcement Director" means the Assistant Director of the Office of

Enforcement for the Consumer Financial Protection Bureau, or his/her

delegate.

1. "Related Consumer Action" means a private action by or on behalf of one or

more consumers or an enforcement action by another governmental agency

brought against Respondent based on substantially the same facts as

described in Section IV of this Consent Order.

m. "Respondent" means Faloni & Associates, LLC, and its successors and

assigns.

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IV

Bureau Findings and Conclusions

The Bureau finds the following:

4. Respondent is a law firm in Fairfield, New Jersey, that is engaged in the

collection of consumer debt through litigation. Respondent is organized as a

limited liability corporation.

5· Respondent is a "covered person" as that term is defmed by 12 U.S.C. § 5481(6)

because, among other reasons, it collects debt related to a consumer financial

product or service.

6. Respondent is a "debt collector" as defined in Section 803(6) of the FDCPA.

15 U.S.C. § 1692a(6).

7· Citi is a "covered person" as that term is defined by 12 U.S.C. §§ 5481(6) and

(15)(A)(i) because, among other reasons, it extends credit and collects debt

related to a consumer financial product or service.

8. Respondent is a "service provider" as that term is defined by 12 U.S.C.

§ 5481(26) because it provided material service to Citi in connection with the

offering or provision by Citi of consumer financial products or services by,

among other things, collecting Debt allegedly owed to Citi in connection with

Citi's extension of credit to Consumers.

9. Respondent filed Collections Litigation in the New Jersey courts to collect

credit card Debt allegedly owed to Citi by Consumers.

10. Affiants executed Declarations for Respondent to file with the New Jersey

courts in Collections Litigation.

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11. In cases filed by Respondent to collect Debt allegedly owed to Citi, the Affiant

to a Declaration attested to the accuracy of the amount of the Debt owed by a

Consumer as of the date of the Declaration's execution. The Affiant also

attested to having personal knowledge of the facts of the Debt that formed the

basis of the statements made in the Declaration.

12. Respondent altered and filed several hundred Declarations in cases pending as

of September 12, 2011.

13. By altering the dates of the Declarations or the amount of the Debts owed or

both after the Affiants executed the Declaration, Respondent misrepresented

the facts to which the Affiant had attested and that had formed the basis of the

statements made in the Declarations. Further, these misrepresentations meant

that the Declarations, as filed with the New Jersey courts, were not Competent

and Reliable Evidence to prove the Debts Respondent collected or attempted to

collect on Citi's behalf.

14. Section 807 of the FDCPA prohibits the "false representation of ... the

character, amount, or legal status of any debt," 15 U.S.C. § 1692e(2)(A), and the

use of"any false or deceptive means to collect or attempt to collect any debt,"

15 U.S.C. § 1692e(10).

15. Section 1036(a)(1)(B) of the CFPA prohibits "unfair, deceptive, or abusive" acts

or practices. 12 U.S.C. § 5536(a)(1)(B).

16. As described in Paragraphs 12-13, in connection v.rith the collection or attempt

to collect Debt, in numerous instances, Respondent represented, expressly or

impliedly, that the Debt allegedly owed to Citi in each Collections Litigation in

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which an altered Declaration was filed was supported by Competent and

Reliable Evidence.

17. In fact, the altered Declarations were not valid legal documentation and did not

constitute Competent and Reliable Evidence of the Debts allegedly owed to Citi.

18. Thus, Respondent's representations as described above constitute false

representations of the legal status of debts in violation of section 807(2) of the

FDCPA, 15 U.S.C. § 1692e(2), false or deceptive means to collect or attempt to

collect debts in violation of section 807(10) ofthe FDCPA, 15 U.S.C.

§ 1692e(10), and deceptive acts or practices in violation of sections 1031(a) and

1036(a)(1)(B) of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1)(B).

ORDER

v Conduct Provisions

IT IS ORDERED, under sections 1053 and 1055 of the CFPA, that:

19. Respondent, and its officers, agents, servants, employees, and attorneys who

have actual notice of this Consent Order, whether acting directly or indirectly,

may not violate section 807 of the FDCPA, 15 U.S.C. § 1692e, and sections 1031

and 1036 of the CFPA, 12 U.S.C. §§ 5531 and 5536, in connection with the

collection or attempt to collect any Debt.

a. Respondent, and its officers, agents, servants, employees, and attorneys who


in connection with the collection or attempt to collect any Debt, may not

misrepresent, or assist others in misrepresenting, expressly or impliedly:

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1. The date of execution of any affidavit, sworn statement, certification of

proof, or declaration;

n . The amount of the Debt owed that is listed in any affidavit, sworn

statement, certification of proof, or declaration;

m. That the Debt that Respondent is attempting to collect is supported by

Competent and Reliable Evidence; or

IV. Any other fact material to consumers.

b. Respondent, and its officers, agents, servants, employees, and attorneys who


in connection v.rith the collection or attempt to collect any Debt, may not alter

or file with a court any affidavit, sworn statement, certification of proof, or

declaration altered after execution, or assist others in altering or filing with a

court any affidavit, sworn statement, certification of proof, or declaration

altered after execution.

c. Respondent, and its officers, agents, servants, employees, and attorneys who


in connection v.rith the collection or attempt to collect any Debt, must comply

with any remaining obligations under the order dated June 10, 2014, entered

by the Superior Court of New Jersey (Law Division- Mercer County) in In re

Application by Citibank, N A., Department Stores National Bank, and

CitiFinancial Servicing, LLC, to Take Curative Action in Certain Pending

Unsecured Consumer Debt Collection Actions, Docket No.: L-355-14,

including:

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1. Vacating all final judgments in actions filed by Respondent as

identified in the June 10 order;

u. Dismissing with prejudice all actions filed by Respondent as identified

in the June 10 order;

m. Ceasing acceptance of payments in all actions filed by Respondent as

identified in the June 10 order; and

1v. Returning to Affected Consumers all amounts collected in actions filed

by Respondent as identified in the June 10 order.

20. Respondent must correct all violations oflaw, to the extent not already

corrected, as described herein.

MONETARY PROVISIONS

VI

Order to Pay Civil Money Penalties

IT IS FURTHER ORDERED that:

21. Under section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason ofthe

violations oflaw described in Section N of this Consent Order, and taking into

account the factors in 12 U.S.C. § 556s(c)(3), Respondent must pay a civil

money penalty of $15,000 to the Bureau.

22. To the extent that Respondent lacks the financial resources to pay the full civil

money penalty, Respondent must obtain contributions from Respondent's

individual owners sufficient to pay the full penalty.

23. Within 10 days of the Effective Date, Respondent must pay the civil money

penalty by wire transfer to the Bureau or to the Bureau's agent in compliance

with the Bureau's wiring instructions.

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24. The civil money penalty paid under this Consent Order will be deposited in the

Civil Penalty Fund ofthe Bureau as required by section 1017(d) of the CFPA,

12 u.s.c. § 5497(d).

25. Respondent must treat the civil money penalty paid under this Consent Order

as a penalty paid to the government for all purposes. Regardless of how the

Bureau ultimately uses those funds, Respondent may not:

a. Claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit

for any civil money penalty paid under this Consent Order; or

b. Seek or accept, directly or indirectly, reimbursement or indemnification from

any source, including but not limited to payment made under any insurance

policy, with regard to any civil money penalty paid under this Consent Order.

26. To preserve the deterrent effect of the civil money penalty in any Related

Consumer Action, Respondent may not argue that Respondent is entitled to,

nor may Respondent benefit by, any offset or reduction of any compensatory

monetary remedies imposed in the Related Consumer Action because of the

civil money penalty paid in this action (Penalty Offset). If the court in any

Related Consumer Action grants such a Penalty Offset, Respondent must,

within 30 days after entry of a final order granting the Penalty Offset, notify the

Bureau, and pay the amount of the Penalty Offset to the U.S. Treasury. Such a

payment will not be considered an additional civil money penalty and will not

change the amount of the civil money penalty imposed in this action.

27. In the event of any default on Respondent's obligations to make payment under

this Consent Order, interest, computed under 28 U.S.C. § 1961, as amended,

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will accrue on any outstanding amounts not paid from the date of default to the

date of payment, and will immediately become due and payable.

28. Respondent must relinquish all dominion, control, and title to the funds paid to

the fullest extent permitted by law and no part of the funds may be returned to

Respondent.

29. Under 31 U.S.C. § 7701, Respondent, unless it already has done so, must

furnish to the Bureau its taxpayer identifying numbers, which may be used for

purposes of collecting and reporting on any delinquent amount arising out of

this Consent Order.

30. Within 30 days of the entry of a final judgment, consent order, or settlement in

a Related Consumer Action, Respondent must notify the Enforcement Director

of the final judgment, consent order, or settlement in writing. That notification

must indicate the amount of redress, if any, that Respondent paid or is required

to pay to consumers and describe the consumers or classes of consumers to

whom that redress has been or will be paid.

31. Under section 604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C.

§ 1681b(a)(1), any consumer reporting agency may furnish a consumer report

concerning Respondent or any of Respondent's individual owners to the

Bureau, which may be used for purposes of collecting and reporting on any

delinquent amount arising out of this Consent Order.

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COMPLIANCE PROVISIONS

VII Reporting Requirements


32. Respondent must notify the Bureau of any development that may affect

compliance obligations arising under this Consent Order, including but not

limited to, a dissolution, assignment, sale, merger, or other action that would

result in the emergence of a successor company; the creation or dissolution of a

subsidiary, parent, or affiliate that engages in any acts or practices subject to

this Consent Order; the filing of any bankruptcy or insolvency proceeding by or

against Respondent; or a change in Respondent's name or address. Respondent

must provide this notice, if practicable, at least 30 days before the

development, but in any case no later than 14 days after the development.

33. Within 7 days of the Effective Date, Respondent must designate at least one

telephone number and email, physical, and postal address as points of contact,

which the Bureau may use to communicate with Respondent.

34. Respondent must report any change in the information required to be

submitted under Paragraph 32 at least 30 days before the change or as soon as

practicable after learning about the change, whichever is sooner.

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35. Within 60 days of the Effective Date, and again one year after the Effective

Date, Respondent must submit to the Enforcement Director an accurate

written compliance progress report (Compliance Report), which, at a

mm1mum:

a. Describes in detail the manner and form in which Respondent has complied

with this Order; and

b. Attaches a copy of each Order Acknowledgment obtained under Section VIII,

unless previously submitted to the Bureau.

VIII

Order Distribution and Acknowledgment

IT IS FURTHER ORDERED that,

36. Within 7 days of the Effective Date, Respondent must submit to the

Enforcement Director an acknowledgment of receipt of this Consent Order,

sworn under penalty of perjury.

37. Within 30 days of the Effective Date, Respondent must deliver a copy of this

Consent Order to each of its officers, as well as to any partners, attorneys,

managers, employees, Service Providers, or other agents and representatives

who have responsibilities related to the subject matter of the Consent Order.

38. For 5 years from the Effective Date, Respondent must deliver a copy of this

Consent Order to any business entity resulting from any change in structure

referred to in Section VII, any future officers, as well as to any partners,

attorneys, managers, employees, Service Providers, or other agents and

representatives who will have responsibilities related to the subject matter of

the Consent Order before they assume their responsibilities.

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39. Respondent must secure a signed and dated statement acknowledging receipt

of a copy of this Consent Order, ensuring that any electronic signatures comply

with the requirements of theE-Sign Act, 15 U.S.C. § 7001 et seq., within 30

days of delivery, from all persons receiving a copy of this Consent Order under

this Section.

IX

Recordkeeping

IT IS FURTHER ORDERED that

40. Respondent must create, or if already created, must retain for at least 5 years

from the Effective Date, the following business records:

a . All documents and records necessary to demonstrate full compliance with

each provision of this Consent Order, including all submissions to the

Bureau.

b. All documents and records necessary to establish a factual basis for any

Declaration.

41. Respondent must retain the documents identified in Paragraph 40 for the

duration of the consent order.

42. Respondent must make the documents identified in Paragraph 40 available to

the Bureau upon the Bureau's request.

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X

Notices


43. Unless othenvise directed in writing by the Bureau, Respondent must provide

all submissions, requests, communications, or other documents relating to this

Consent Order in writing, with the subject line, "In re Faloni & Associates, LLC,

File No. 2016-CFPB- ," and send them either:

a. By overnight courier (not the U.S. Postal Service), as follows:

Assistant Director for Enforcement Consumer Financial Protection Bureau ATTENTION: Office of Enforcement 1625 Eye Street, N.W. Washington D.C. 20006; or

b. By first-class mail to the below address and contemporaneously by email to

[email protected]:

Assistant Director for Enforcement Consumer Financial Protection Bureau ATTENTION: Office of Enforcement 1700 G Street, N.W. Washington D.C. 20552

XI

Cooperation with the Bureau


44. Respondent must cooperate fully with the Bureau in this matter and in any

investigation related to or associated V\rith the conduct described in Section IV.

Respondent must provide truthful and complete information, evidence, and

testimony. Respondent must cause Respondent's partners, attorneys, officers,

IS


morganja

Typewritten Text

0006

morganja

Typewritten Text

employees, representatives, or agents to appear for interviews, discovery,

hearings, trials, and any other proceedings that the Bureau may reasonably

request upon 5 days written notice, or other reasonable notice, at such places

and times as the Bureau may designate, without the service of compulsory

process.

XII

Compliance Monitoring

IT IS FURTHER ORDERED that, to monitor Respondent's compliance with

this Consent Order:

45. Within 14 days of receipt of a written request from the Bureau, Respondent

must submit additional Compliance Reports or other requested information,

whic4 must be made under penalty of perjury; provide sworn testimony; or

produce documents.

46. For purposes of this Section, the Bureau may communicate directly with

Respondent, unless Respondent retains counsel related to these

communications.

47. Respondent must permit Bureau representatives to interview any partner,

attorney, employee, or other person affiliated with Respondent who has agreed

to such an interview. The person interviewed may have counsel present.

48. Nothing in this Consent Order will limit the Bureau's lawful use of civil

investigative demands under 12 C.F.R. § 1080.6 or other compulsory process.

49. For the duration of the Order in whole or in part, Respondent agrees to be

subject to the Bureau's supervisory authority under 12 U.S.C. § 5514. Consistent

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with 12 C.F.R. § 1091.111, Respondent may not petition for termination of

supervision under 12 C.F.R. § 1091.113.

XIII

Modifications to Non-Material Requirements


so. Respondent may seek a modification to non-material requirements of this

Consent Order (e.g., reasonable extensions of time and changes to reporting

requirements) by submitting a written request to the Enforcement Director.

51. The Enforcement Director may, in his/her discretion, modify any non-material

requirements ofthis Consent Order (e.g., reasonable extensions oftime and

changes to reporting requirements) if he/she determines good cause justifies

the modification. Any such modification by the Enforcement Director must be

in writing.

ADMINISTRATIVE PROVISIONS

XIV

Administrative Provisions

52. The provisions of this Consent Order do not bar, estop, or otherwise prevent

the Bureau, or any other governmental agency, from taking any other action

against Respondent.

53· This Consent Order is intended to be, and will be construed as, a final Consent

Order issued under section 1053 ofthe CFPA, 12 U.S.C. § 5563, and expressly

does not form, and may not be construed to form, a contract binding the

Bureau or the United States.

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54· This Consent Order will terminate 5 years from the Effective Date or 5 years

from the most recent date that the Bureau initiates an action alleging any

violation of the Consent Order by Respondent. If such action is dismissed or

the relevant adjudicative body rules that Respondent did not violate any

provision of the Consent Order, and the dismissal or ruling is either not

appealed or upheld on appeal, then the Consent Order will terminate as though

the action had never been filed. The Consent Order will remain effective and

enforceable until such time, except to the extent that any provisions of this

Consent Order have been amended, suspended, waived, or terminated in

writing by the Bureau or its designated agent.

55. Calculation of time limitations will run from the Effective Date and be based on

calendar days, unless otherwise noted.

56. Should Respondent seek to transfer or assign all or part of its operations that

are subject to this Consent Order, Respondent must, as a condition of sale,

obtain the written agreement of the transferee or assignee to comply with all

applicable provisions of this Consent Order.

57. The provisions of this Consent Order will be enforceable by the Bureau. For any

violation of this Consent Order, the Bureau may impose the maximum amount

of civil money penalties allowed under section 1055(c) of the CFPA, 12 U.S.C.

§ 5565(c). In connection with any attempt by the Bureau to enforce this

Consent Order in federal district court, the Bureau may serve Respondent

wherever Respondent may be found and Respondent may not contest that

court's personal jurisdiction over Respondent.

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58. This Consent Order and the accompanying Stipulation contain the complete

agreement between the parties. The parties have made no promises,

representations, or warranties other than what is contained in this Consent

Order and the accompanying Stipulation. This Consent Order and the

accompanying Stipulation supersede any prior oral or written communications,

discussions, or understandings.

59. Nothing in this Consent Order or the accompanying Stipulation may be

construed as allowing the Respondent, officers, or employees to violate any law,

rule, or regulation.

IT IS SO ORDERED, this .1:24._ day of (e,b,.-c,\ ~ '2016.

~.fA7 Director Consumer Financial Protection Bureau

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UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

VICTORIA LOPEZ, on behalf of herself and those similarly situated, Plaintiff, vs. FALONI & ASSOCIATES, L.L.C. a/k/a LAW OFFICES OF FALONI & ASSOCIATES, LLC; DAVID A. FALONI, SR.; DAVID A. FALONI, JR.; LVNV FUNDING LLC; SHERMAN ORIGINATOR, LLC; RESURGENT CAPITAL SERVICES, L.P.; ALEGIS GROUP, LLC and JOHN DOES 1 to 10, Defendants.

Civil Action No. 2:16-cv-01117-SDW-SCM

CERTIFICATE OF SERVICE

I hereby certify that on this 27th day of April 2016, I caused a true and correct copy of

Plaintiff’s First Amended Class Action Complaint to be served on this date via the Court’s

CM/ECF system upon:

GORDON & REES LLP Peter G. Siachos, Esq. Matthew P. Gallo, Esq. 18 Columbia Turnpike, Suite 220 Florham Park, New Jersey 07932 Tel: (973) 549-2500 Fax: (973) 377-1911 Attorneys for Defendants

s/Yongmoon Kim

DATED: April 27, 2016 Yongmoon Kim


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