Michael and Rebekah Cefalu had taken out a mortgage on their home in 2000. Unfortunately, they lost that home to Hurricane Katrina. Worse yet, they had no flood insurance. They stopped making their mortgage payment.
Citibank was the servicer on mortgage and began calling the Cefalus multiple times a day as if harassing the crap out of these people was somehow going to make the money appear. After years of this abuse, they hired Attorney John Reddman who challenged Citibank to produce a copy of the mortgage loan. Citibank did not have the records to support its claim. The judge dismissed Citibank’s claim and ordered it to pay $10,000 to Mr. and Mrs. Cefalus. Citibank’s attorneys complained that the court did not have the right subject it to the Louisiana’s debt collection laws.
Moral of the Story – If you are in foreclosure, don’t roll over and give up. Fight back. If a large bank like Citibank keeps sloppy records, whose to say that your bank’s records are any better. Kudos to Mr. and Mrs. Cefalus and their attorney, John Reddman.

If you have been victimized by a debt collector or have items on your credit report that are incorrect, call or email Attorney Gary Nitzkin for a free consultation at (888) 293-2882. For more information about your credit rights as a consumer, visit our blog at www.micreditlawyer.com/blog. Visit our website at www.micreditlawyer.com.