U.S. Bankruptcy Judge Stacey G.C. Jernigan issued a recent opinion finding that automobile lender Ally Financial Inc. violated federal bankruptcy law collecting on discharged debts. Ally was sending letters to their debtors trying to get them to pay off debt that they no longer owe. Ally routinely sent letters to confuse debtors into making payments and in so doing collected extra monies from the Debtors.

After finding that these letters were improper the court ruled that Ally was prohibited from sending out this letters to anyone in the Northern District of Texas’ jurisdiction and that Ally was required to pay back $11,000 from their proceeds. Aside from paying damages, Ally was ordered by the judge to pay legal fees to the winning lawyer, John J. Grieger Jr. of Legal Aid of NorthWest Texas in Dallas.

The Judge’s ruling is good news for Debtors in the North Texas area, especially those who have come under prey by unscrupulous lenders. For more information about bankruptcy, or for a free consultation, contact the experienced attorney’s at Fears and Nachawati 1.866.705.7584.