Frederick J. Hanna Sued For Attempting To Collect Debt Already Paid
Mr. Hanna claims not to know the meaning of the word subterfuge; it should have been his middle name
23, 2011: A St. Clair County man accuses several banks and collection
agencies of improperly attempting to collect a debt.
filed a lawsuit Nov. 16 in St. Clair County Circuit Court against LVNV
Funding LLC, Resurgent Capital Services LP and Chase Bank USA. United
Collection Bureau Inc., Frederick J. Hanna & Associates PC and
Weltman, Weinberg & Reis Company LPA are also named as defendants.
The suit seeks a judgement of more than $1.5 million in compensatory and punitive damages plus court costs.
says he was living in Arkansas in November 2008 when he reached a
settlement agreement on a debt with Chase Bank. The payment was made by
money order and endorsed by the bank, allegedly satisfying the debt on
In June 2009, Benson says he started receiving several demand letters after
to Illinois. He says the notices from United Collection Bureau demanded
he pay $4,700 on the previously-settled account. In August 2009 Benson
claims he wrote the company asking for validation of the debt, which he
says he never received.
In October 2009, Benson says Frederick J.
Hanna & Associates sent him a demand letter for the same amount on
the same account. Again, Benson claims he asked for validation and
verification of the amount owed, which he allegedly never received. Two
years later Weltman, Weinberg & Reis allegedly sent Benson a demand
letter for the same Chase Bank debt which was now held by LVNV Funding.
claims the defendants violated the federal Fair Debt Collection
Practices Act and Illinois' Collection Agency Act by not providing
validation of the debt, repeatedly demanding payment on an account that
had been settled and transferring collection activities to new debt
agencies. He also accuses the companies of consumer fraud.
Attorney David M. Duree of O'Fallon is representing Benson. They ask for a jury trial.