LendingTree Expands Credit Repair Business, Plans To Acquire Ovation Credit Services

credit repair
Up to now, LendingTree has been on the sidelines operating as an educator and facilitator for credit consumers, but this move puts them on the field and in play in the credit repair game. LendingTree Founder and CEO Doug Lebda said in a statement. Ovation’s claim to fame is it proprietary software that smooths the process of credit repair. Lebda said in a statement. 8.75 million in consideration payments. The sale is to close in Q2 this year.

Ridgeway testified that she specifically asked CS360 to dispute the AR Resources debt. The record contained a one-page “Collection Shield Service Agreement” electronically signed by both CS360 and Ridgeway. ], to make, receive, sign, endorse, execute, acknowledge, deliver, and process such applications, correspondence, contracts, or agreements to credit reporting agencies and creditors/collection agencies as necessary to improve my credit.” The agreement is undated.

AR Resources moved for summary judgment on the one-count complaint. Editor’s Note: A motion for summary judgment is based upon a claim by one party (or, in some cases, both parties) that contends that all necessary factual issues are settled or so one-sided they need not be tried. The summary judgment is appropriate when the court determines there no factual issues remaining to be tried, and therefore a cause of action or all causes of action in a complaint can be decided upon certain facts without trial.

On July 20, 2017 insideARM wrote about a very similar case, involving almost identical facts and the same defendant, Taylor-Burns v. AR Resources, Inc. (Case No. 16-cv-1259, U.S.D.C. In that case, New York district court judge Robert W. Sweet, forcefully determined that the CS360 Agreement failed to comply with seven different requirements of the Credit Repair Organizations Act ("CROA"), 15 U.S.C. § 1679 et seq.

“The lack of a CROA - compliant contract between CS360 and Plaintiff - and therefore the lack of a valid contract between CS360 and Plaintiff - means that CS360 had no authority to send the Letter on Plaintiff's behalf. As previously noted, the Plaintiff testified that she did not prepare, sign, or send the Letter. She contacted CS360, which sent the Letter on her behalf.

In the instant case, the Honorable Noel L. Hillman considered the Taylor-Burns opinion, but disagreed with Judge Sweet’s analysis and refused to follow the same logic. A reasonable factfinder could find on this record that CS360 had authority to act on Ridgeway’s behalf, and therefore Ridgeway, through her agent, CS360, disputed the debt at issue even if Ridgeway and CS360 did not have a CROA-compliant contract. Independent from the disputed written agreement, Ridgeway testified that she called CS360 and asked them to dispute the debt at issue, and in response, CS360 faxed the above-quoted correspondence.

It will be interesting to see what happens next. This case is not over. The judge only denied a motion for summary judgment. Hopefully AR Resources will continue to defend the case and take it to trial. ARM firms are constantly struggling with how to deal with high volume validation requests or disputes.

It seems that it is a strategy employed by many credit repair organizations and/or consumer rights law firms. The original case (Taylor-Burns v. AR Resources, Inc) provided strong language from a New York judge that saw significant issues with the practices of CS360. The judge went even further in discussing that firm’s relationship with the RC Law Group.

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