Haywood v. LRA Corporation et al

Filing 29

MOTION by Plaintiff Sarah Jean Haywood for judgment (Attachments: # 1 Exhibit A-Affidavit of Plaintiff, # 2 Exhibit B-Summary of Attorney's Fees, # 3 Exhibit C-Laffey Matrix, # 4 Exhibit D-Consumer Law Attorney Fee Survey)(Marco, David)

EXHIBIT A

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
SARAH JEAN HAYWOOD,
Plaintiff,
v.
LRA CORPORATION d/b/a
L.R.A. CORPORATION DEBT
COLLECTION SERVICES and
LARRY RAYBIN,
Defendants.

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1:12-cv-2527
Judge Leinenweber

AFFIDAVIT OF PLAINTIFF
Plaintiff, SARAH JEAN HAYWOOD, deposes and states as follows:
1.

I am over the age of eighteen (18) and I am competent to testify at a hearing
should I be so required.

2.

I have personal knowledge of the facts contained within this affidavit.

3.

If requested to do so, I would testify in accordance with the facts contained within
this affidavit.

4.

On or about March 8, 2012, LRA Corporation d/b/a L.RA. Corporation Debt
Collection Services (“LRA) sent me a letter in an attempt to collect a debt I
supposedly owed to ETI Financial Corporation (“ETI”). (See Exhibit A to First
Amended Complaint).

5.

LRA sent the letter addressed to me via regular mail and this was LRA‟s initial
communication to me.

6.

When LRA sent the letter to me, LRA enclosed the letter in an envelope, the
return address of which identified LRA as “L.R.A. CORPORATION DEBT
COLLECTION SERVICES.” (See Exhibit B to First Amended Complaint).

7.

When LRA sent the letter to me, immediately following my name, LRA listed my
account number relative to the debt on which it was attempting to collect as “ACC
#7953953.” (See Exhibit A to First Amended Complaint). My account
number was visible upon viewing the envelope in which LRA enclosed the letter.
(See Exhibit B to First Amended Complaint).
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8.

LRA reasonably should have known that people other than me would see LRA‟s
name listed on the return address of the envelope and my account number listed
on the envelope immediately after Plaintiff‟s name. I thought this letter and
envelope violated my privacy as anyone could see who they were and my
personal account number. This was also embarrassing as my husband‟s high
school friend was a mail carrier and sometimes was on our route. I did not want
anyone to know that I had debt collectors sending me letters. This could make me
and my husband subject to gossip among our friends.

9.

In its letter dated March 8, 2012, LRA stated that I owed a balance of $32.36 and
LRA stated “if we DO NOT RECEIVE PAYMENT WITHIN 30 DAYS we will
report this as a BAD DEBT to the THREE CREDIT BUREAUS, EQUIFAX,
EXPERIAN, AND TRANSUNION.” (See Exhibit A to First Amended
Complaint). This statement made me think that if I did not pay LRA within
thirty days then the debt would be reported to the credit bureaus. This was very
stressful as I was trying to repair my credit, and was very worried that this debt
being reporting would ruin all the work I had been doing and this was for a debt I
did not think I owed the money on. I felt threatened by their actions and I did not
know what action to take and how I could do it quickly but I wanted to do
research.

10.

In the letter LRA also stated “you have thirty days after receipt of the notice, to
dispute the validity of the debt or any portion thereof, or this debt collector will
assume the debt valid.” (See Exhibit A to First Amended Complaint). This
statement by LRA in the same letter confused me, as I did not understand if I had
thirty days to dispute the debt, how did I also, only have thirty days to pay the
debt. I felt this was very contradictory and confusing as to what I could do. If I
disputed the debt would LRA then report it to the credit bureaus because as I
would be waiting for validation I would not pay the debt within the thirty days. If
I paid the debt to avoid being reported then I would not have the opportunity to
dispute this debt and I wanted to because I did not think I owed it.

11.

In its letter to me LRA further stated “a bad debt recorded on your credit can
cause your credit score to plummet; this will quickly end your ability to acquire
any sort of credit. Companies will not lend you money; give you open account
(credit) for services, especially in today‟s economy.” (See Exhibit A to First
Amended Complaint). This statement by LRA was very upsetting as I was
extremely concerned that I would not be able to obtain credit down the line should
I need or want to due to this debt.

12.

In the letter to me, LRA further stated “the „Cost of Bad Credit‟, will affect
interest rates for a loan, if you qualify for one, will cause credit card interest rates
to go up…” (See Exhibit A to First Amended Complaint). I was getting very
frustrated that LRA reporting this debt could then make all other accounts I had
have the interest rates go up if they reported the debt to the credit bureaus. I felt
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like all the work I had been doing to repair my credit may be undone and my
credit could be worse.
13.

LRA‟s representations to me that if a bad debt was reported on my credit report
that interest rates for any loan or credit card I had would increase were statements
made by LRA to me in an attempt to coerce me into making a payment to LRA.

14.

LRA has not provided to me within five (5) days of its initial communication to
collect the alleged debt, with a written statement that if I sent a written request to
LRA within thirty (30) days after receipt of LRA‟s letter, that LRA would provide
me with the name and address of the original creditor, if different from the current
creditor.

15.

On or about March 22, 2012, my attorney sent a letter to LRA notifying LRA that
I was represented with respect to the debt on which it was attempting to collect.
Contact information for my attorney was provided. (See Exhibit C to First
Amended Complaint).

16.

On or about March 26, 2012, LRA sent a letter to my attorney. LRA
acknowledged receipt of the March 22, 2012 letter and requested the account
number of the debt on which LRA was attempting to collect from me. (See
Exhibit D to First Amended Complaint).

17.

On or about March 27, 2012, my attorney sent a letter to LRA which stated the
account number relative to the debt on which LRA was attempting to collect from
me. (See Exhibit E to First Amended Complaint).

18.

After LRA received the letter from my attorney, on or about March 27, 2013 LRA
sent another letter to my attorney. (See Exhibit F to first Amended Complaint).

19.

In the letter LRA sent to my attorney, dated March 27, 2012, LRA, again,
acknowledged having received the March 27, 2012 letter.

20.

Despite LRA‟s awareness that I was represented by an attorney, on or about April
19, 2012, LRA continued to attempt to collect the debt I allegedly owed to ETI
and called my husband in a further attempt to collect the debt I allegedly owed to
ETI.

21.

On or about April 19, 2012, my husband spoke with LRA and it stated I owed a
balance relative to the debt I owed to ETI.

22.

At no time has my attorney failed to respond to a communication from LRA.

23.

My attorney did not consent to LRA having direct communication with me or my
husband nor did I consent to LRA having direct communication with me or my
husband.
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