Citizens Bank, NA is an Original Creditor that offers high interest loans similar to Lending Club and WebBank online loans. Citizens are usually represented by either Weltman, Weinberg & Reis or Stenger & Stenger. While a lawsuit from an original creditor is harder to fight or resolve, the Citizens type of debt lawsuit has a unique weakness: Prior to suing the borrower, the bank has already assigned or transferred the debt to a secured trust long before Citizens filled the lawsuit you are facing. Further, the lawsuit by Citizens may appear to be a creditor lawsuit and lack any FDCPA regulation, the transfer of the debt to someone else makes Citizens a debt collector for the real owners of the debt with greater options for the consumer to fight the lawsuit.
The Citizen debts are usually sold to Asset Backed Securities (ABS)s or secured trusts. An Originator (like Citizens Bank) first originates or agrees to lend money to a borrower. After the Originator or Citizens agrees to loan the money, Citizens sells the debt to a secured trust or ABS (new owners) who pay Citizens a discounted amount and also allows Citizens to act as a servicer and send the payments it receives to the ABS/secured trust. Citizens sometimes uses a company called Firstmark Services as its collections arm to service the debt for the ABS. Citizens keeps a small portion of the payments it receives. After the borrower defaults on the debt, Citizens sues on the loan as a third party (a debt collector) for the transferee or ABS it sold the debt to; just like any other debt collector lawsuit. After the sale of the debt, Citizens has gone from being creditor to being a debt collector and then, the FDCPA applies to a lawsuit generally not applicable to creditor lawsuits.
Here are two typical Citizens Bank lawsuits that falsely claim to own the debt an ABS bought from Citizens a long time before the complaint is filed.
Samples here:
Citizens Bank Lawsuit Example from Stenger & Stenger
Citizens Bank lawsuit Sample by Weltman Weinberg
Bottom line, Citizens has no right to sue upon the debt. No one asks the right questions on these Citizen lawsuits, but we do. We know how to get you out of these lawsuits and negotiate a discounted payment plan or elimination of the original debt depending on your goals and objectives.
How to Deal with Debt Collectors
The main attorneys on debt collection lawsuits for Stenger & Stenger, P.C. are Joe Jammal, Brian Groen or Preston Nate and for Weltman Weinberg law firm, Jennifer Dillow and Dan Best. These attorneys specialize in suing consumers with debt collection lawsuits from Citizens. Look for their names on the Summons in your paperwork to confirm these law firms is suing you.
When you get sued by Stenger and Weltman in State court, an answer and counter claim against them is the best approach to eliminating or settling your debt. Usually, Stenger or Weltman will hide the fact that the debt has been sold or transferred. Discovery soon ferrets out the truth and wins the case. If you are facing a Citizens lawsuit, get your lawsuit paperwork to us within 21 days of being served and we will provide you with a free analysis to help you win.
When you hire us, we first file a Response or an “Answer” to the debt collector lawsuit to avoid a Default being filed against you. Avoiding a Default is your number one thing to do so you can have your day in court. Second, we file a Counter Claim showing the Court that Citizens does not own the debt anymore. Citizens' ownership of the debt is long gone and sold to different entities and trusts. Your counter claim shows the Court that Citizens has no standing to sue you and therefore they broke the law. You are then entitled to money damages and attorney fees and costs. This will settle lawsuits quickly and will often eliminate the debt against you or result in a discounted payment plan. You authorize how to settle the debt depending on your goals and objectives.
It is simple with the right attorney. If you need help with a Citizens lawsuit from Stenger or Weltman, then contact me at 248-342-9583 or through our free evaluation form. As a debt lawsuit defense attorney, I also offer a free legal consultation when you are sued by Citizens or their collection attorneys. As I stated above, the best way to deal with them is to come in strong with a good defense and counter claim on their lawsuit. As our five-star clients will tell you, the savings we offer far outweigh our small legal fees and you might get money back from them in a Federal lawsuit. We do it all. Please fill out our Free Case Evaluation today or Call Today! Thank you.
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