Disputed $515 debt and collection efforts leads to two lawsuits

SHERMAN - A Sherman woman has filed a lawsuit against a debt collection agency after the company refused to take a disputed debt off of her credit report.

Mary Jane Moynihan filed suit against National Credit System Inc. on March 12 in the Eastern District of Texas, Sherman Division.

Moynihan incurred a financial obligation of $515 to Hilltop Village Apartments and the debt was assigned or transferred to the defendant.

According to court documents, the creditor filed a lawsuit against Moynihan in 2011 in Grayson County. In May 2011, the judge issued an order stating that since the creditor failed to appear, the creditor could not recover money from Moynihan.

Moynihan states that she received a collection letter from NCS in January 2012. She responded by disputing ownership of the debt, with the previous Court order as evidence. NCS sent another collection letter in February 2012.

NCS allegedly told Moynihan that NCS would not remove the negative entry from her credit report.

The defendant is accused of violating the Fair Debt Collection Practices Act by harassing Moynihan, failing to report that the debt was disputed to the credit bureau, and for continuing collection efforts without verifying the debt.

The plaintiff is asking for an award of actual damages for emotional distress, humiliation, anger, anxiety, fear, frustration, embarrassment and invasion of privacy, statutory damages of $1,000, punitive damages, court costs and attorney's fees.

Moynihan is represented by Jody B. Burton of Lemberg & Associates in Stamford, Conn.

A jury trial is requested.

U.S. District Judge Richard A. Schell is assigned to the case.

Case No. 4:12-cv-00135