CreditBox, a short term lender that has been a party to over 3,000 lawsuits in Wisconsin, recently paid $55,000 to Lawton Cates, S.C. and its client to settle claims that it had treated a customer unfairly.
CreditBox had sued the customer, and gotten a default judgment. The customer then hired Lawton Cates, and our firm was able to reopen the lawsuit and bring claims of unfair treatment against CreditBox. CreditBox immediately dismissed its own claim against the customer and then tried to get the customer’s counterclaim thrown out of court.
The customer’s allegations included that CreditBox had breached its own contract, and Wisconsin law, by requiring him to pay the balance in full without first sending him legally- and contractually-required notices. The customer also argued that CreditBox had acted unconscionably by refusing to provide answers to discovery requests, by “charging off” the debt and then letting substantial time pass (and interest accrue) before attempting to notify the customer of the default, and by charging an ‘exorbitant’ interest rate of 399.025% per year. Lawton Cates prior to the settlement had also advised CreditBox’s counsel – Attorney David Turek of Gass Turek, LLC, that Lawton Cates would also be investigating additional potential illegal actions by CreditBox.
With this Court of Appeals decision, Lawton Cates has further expanded consumer protections against unscrupulous lenders. If you have taken out a short-term loan or are facing collection lawsuits, call Lawton Cates and make an appointment for a free consultation with our consumer protection lawyers.