Spam Texts Salary King Lawsuit Gets Class Action Status

0

Carey Brown

IN SHORT:

* What: class action lawsuit against tow companies, including three owned by Chattanooga businessman Carey V. Brown, for spam text messages

* Initial applicant: Flemming Kristensen

* Defendants: Credit payment services, MyCashNow.com, Enova International, Pioneer Financial Services, Leadpile, Click Media, Net1 Promotions

WHO IS WHO:

• Credit Payment Services – The main payday company of Chattanooga entrepreneur Carey Vaughn Brown, which operated through a number of affiliated companies. Brown officials introduced its various companies, incorporated in Nevada, operated out of Chattanooga but portrayed as foreign entities, as independent companies that engage in various activities outside of payday lending.

MyCashNow.com – One of Brown’s now-closed troubleshooting websites, which also included DiscountAdvances.com and PayDayMax.com.

• Leadpile – A subsidiary of the now defunct Area203 Digital, one of Brown’s companies in Chattanooga, Leadpile is accused of sending unwanted SMS spam messages to thousands of Americans.

Document

Kristensen class action

Seen

A Chattanooga-based payday lender accused of spamming thousands of Americans with unwanted text messages suffered a setback this week as a lawsuit against its companies gained class action status.

Payday lender Carey V. Brown continued to say his companies had done nothing wrong.

Brown may have lost much of his payday empire in a battle with federal and state regulators last fall, but that hasn’t stopped Nevada attorneys from filing a civil class action lawsuit against its companies, specifically Credit Payment Services, Leadpile, and the closed MyCashNow.com website.

These companies allegedly violated the law on consumer protection by telephone by spam consumers with random text messages containing offers for payday loans, a type of loan that carries a high interest rate and must be repaid after two weeks to avoid additional charges.

Consumer advocates say payday loans trap people in a cycle of debt as loans are renewed and the fees end up getting higher than the original loan. Payday lenders say they are providing a service to poor Americans who need a financial bridge from payday to payday, to avoid more serious consequences, such as missing payment on a payday. car or cut off the electricity.

But the lawyers in this case are not disputing Brown’s loans, they are unhappy with the way they say he solicited clients using millions of autodial text messages which in some cases would have cost money. money to recipients. The texts contained links that redirected recipients to websites controlled by Brown and others.

After dismissing two motions to dismiss the lawsuit, U.S. District Judge Andrew Gordon this week granted class certification to anyone who received a spam text message between December 5, 2011 and January 11. 2012, from one of the three specific telephone numbers.

Brown denied Thursday that his businesses had anything to do with unwanted text messages from phone numbers 330-564-6316, 808-989-5389 or 209-200-0084.

“None of my companies have ever sent spam, and neither will we tolerate spam,” Brown said.

Journalists have previously located blog posts on the website of Leadpile, one of the companies named in the lawsuit and controlled by Brown, praising SMS spam as “an interesting and productive way to generate leads or more. business, including brand awareness.

In an article titled “SMS and Lead Generation in a Lead Exchange,” Leadpile Marketing Director Eugen Ilie demonstrated how a single spam text message sent to thousands of cell phone users can attract over 6 400 pairs of eyeballs on a company’s website.

Judge Gordon, who joined the Nevada bench in 2013 after being appointed by US President Barack Obama, discovered that there was a series of “top-down” contractual relationships that began with Brown’s companies and spun off. passed on to the group that committed the alleged spam.

The benefits of text messages, in this case leads to potential payday clients, have trickled “upstream” to businesses controlled by Brown, Gordon wrote in his reasoning behind the decision.

Brown claimed the actual spammer was an individual located in Ohio – information he provided to lawyers in the case. But for some reason this person is not being prosecuted, he said.

“There are unscrupulous lawyers who are trying to make money for themselves,” Brown said.

Contact editor Ellis Smith at 423-757-6315 or [email protected] with advice and materials.

Share.

Comments are closed.