Law Office of Paul Arons
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Companies that operate these programs have been sued in federal court lawsuits throughout the United States, including Pennsylvania, California, Indiana, Florida, Washington and Georgia.  American Corrective Counseling Services, Inc., (ACCS), the predecessor of National Corrective Group, filed a Chapter 11 bankruptcy in 2009 that effectively stopped most of the litigation then pending.  The Law Office of Paul Arons has represented the plaintiffs in many of those lawsuits.
In Gradisher v. Check Enforcement Unit, Inc., 210 F. Supp. 2d 907 (W.D. Mich. 2002), a federal court in Michigan ruled that the private company was violating the Fair Debt Collection Practices Act by using district attorney letterhead and falsely threatening consumers with arrest. 
In Schwarm v. Craighead, 552 F. Supp. 2d 1056 (E.D. Cal. 2008), a federal court in Sacramento, California ruled that the person who ran the private company violated the Fair Debt Collection Practices Act and California law by charging unlawful fees, pretending to be the district attorney's office and making false threats to have check writers arrested.
In Del Campo v. Am. Corrective Counseling Serv., 718 F. Supp. 2d 1116 (N.D. Cal. 2010), the federal court in San Jose, California ruled that the two individuals that made millions from the company they owned had violated both the Fair Debt Collection Practices Act and the California Unfair Competition Law by charging fees for a diversion class and imposing other fees, but impersonating the district attorney's office in their communications with check writers, and by falsely claiming that check writers who did not pay those fees would be prosecuted.  
Currently, the following lawsuits are being pursued or recently settled:
Cavnar v. Bounceback, Inc., Civ. No. 2:14-cv-0235, U.S. District Court, Eastern District of Washing, filed July 18, 2014 - This class action lawsuit is filed against Bounceback, Inc., and its president, who operate a Check Enforcement Program in counties in Washington and throughout the United States.  The plaintiffs allege that Bounceback, with its Check Enforcement Program is violating the Fair Debt Collection Practices Act and the Washington Consumer Protection Act, by charging unlawful fees, impersonating the prosecuting attorney and making false prosecution threats.
del Campo v. Mealing, Civ. No. 01-21151, U.S. District Court, Northern District of California -  This class action lawsuit concerned the collection conduct of the individuals that operated ACCS from December 1997 until November 2004. In 2009, the primary corporate defendant evaded responsibility for its conduct by filing a bankruptcy petition.  The same business was being operated by National Corrective Group, d/b/a Corrective Solutions.  In June 2014, Corrective Solutions was sold to Victim Services, Inc., which continues to operate the business.s    
Smith v. Levine Leichtman Capital Partners, et al., Civ. No. 10-0010, U.S. District Court, Northern District of California -  This lawsuit concerns the activities of Levine Leitchman Capital Partners, National Corrective Group, and others.   In 2014, the court approved a $3.25 million settlement.  
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