Debt Collector Patenaude & Felix Allegedly Ruined Family’s Opportunity to Refinance Mortgage

by Joseph Mullaney on April 29, 2010 · 11 comments

A Harrisburg-area woman accused the debt collection law firm, Patenaude & Felix, A.P.C. of Carnegie, PA and San Diego, CA, of unfair debt collection tactics when it attempted to collect an alleged Target National Bank consumer credit card account. Her accusations are found in a lawsuit she filed in the Middle District of Pennsylvania alleging Patenaude and Felix violated the Fair Debt Collection Practices Act (FDCPA). The consumer asked the Court to enter a judgment against Patenaude & Felix and for her statutory damages, actual damages, attorney’s fees, and costs.

According to the lawsuit, Patenaude & Felix was able to secure a collection judgment against the consumer on behalf of Target. The consumer learned of the judgment when she applied to refinance her mortgage. If the refinance went through, her family would have been able to save tens of thousands of dollars in reduced mortgage payments due to a lower interest rate. When the consumer attempted to resolve the judgment, Patenaude & Felix deceptively changed the settlement terms, called her vicious names, and screamed so loud, it injured her eardrum. Even after the consumer paid an agreed settlement amount, Patenaude & Felix still refused to treat the judgment paid causing the consumer to be unable to refinance her mortgage.

Although the consumer denied owing any money to Target, there was no time to refuse payment as the judgment prevented closing on the mortgage refinance. According to the Complaint, the consumer contemplated dealing with the judgment after it was reported paid and the refinanced loan closed.

“Never trust a debt collector,” her attorney, Joseph A. Mullaney, III, opined. “If you think you have an agreement with a debt collector, you must reduce the agreement to writing,” Mullaney cautioned. If a debt collector will not provide a consumer with an agreement in writing, the consumer can document the agreement in writing and condition any payment on the terms found in the consumer’s written document. “It’s a two-way street when it comes to agreements,” Mullaney said. “However, it is always best to see if a Consumer Rights Attorney will help you draft the agreement,” he finished.

Pennsylvania and New Jersey consumers who believe their fair debt collection rights have been violated are invited to click here for a no-obligation assessment of their consumer law matter.

Tagged as: debt collection, fair debt, fdcpa, patenaude felix

  • Anonymous

     I often wonder the same thing. I worked at a collection agency when I was in college and I only lasted a few months because I couldn’t stand how rude we were supposed to be to people. I don’t understand how anyone can spend eight hours a day threatening and intimidating people and feel good about themselves.

  • Mimsey

    The lesson to take away here is to always get any communications or telephone messages in writing from the lending company and to refuse to deal with debt collection agencies over the telephone. Get it all in writing.

  • sellmore

    Her first mistake was giving in to the debt collector if she didn’t feel the debt was owed.  I understand she felt under pressure but she should have fought that first, before trying to refinance.  The bank may have understood if she’d told them that it was an erroneous debt or at least given her a chance to resolve it.

  • Sean

    A friend of mine had a very similar issue going on when they tried to get some money just to fix their place up. It was not in “bad shape” but it did need some repairs that would have improved the home for them and the next owners even though they plan to be in the place for another ten years.

  • MaybeNot

    This is yet another reason why I don’t use credit cards at every store under the sun. I really hate it when I shop at a store that offers me an extra discount if I’ll open a charge account. I always say ‘no.’ I avoid those stores, too, whenever I can because I detest this policy.

  • Anonymous

    If it is not in writing then the conversation may as well have never happened. Personally, I would want the agreement in writing and notarized as well.

  • CreatureComfort

    The more I read about debt collectors, the more I am convinced they are some of the most unscrupulous people on the planet. For one to yell at a consumer, regardless of the reason, is beyond reprehensible. I can’t understand how they sleep at night knowing they are responsible for keeping a family from refinancing their home. No wonder there are so many lawsuits against them.

  • Anonymous

    Great tips on here, always get an agreement in writing prior to paying anything to a collection agency.  I can’t imagine these people screaming so loud that they injured her eardrum. Sick!

  • Anonymous

    We had a situation like this (minus the refinancing part) last year when a debt collector made a verbal agreement with my husband, but refused to put it in writing. I haven’t paid a penny on the debt nor will I unless I get the reduction in writing.

  • Anonymous

    We had a situation like this (minus the refinancing part) last year when a debt collector made a verbal agreement with my husband, but refused to put it in writing. I haven’t paid a penny on the debt nor will I unless I get the reduction in writing.

  • Anonymous

    In this day and age, with so many homeowners facing foreclosure, it is a crying shame that an unethical debt collector would be able to prevent someone from getting a refinance on their mortgage. That attorney is so right. You have to get it in writing when dealing with unscrupulous debt collectors.

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