Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Pay Day Loans in Bankruptcy

In re Ferrell was a case out of the 9th Circuit where the court ruled statutory damages are not available for violations of the bankruptcy code.  The court also rejected a claim for actual damages and for attorney's fees.  The debtor received a pay-day loan, which included a financing fee and an interest rate in excess of 700%.  The trustee initiated an adversary proceeding by filing a complaint requesting the bankruptcy court to disallow the claim, alleging the loan company violated the Truth in Lending Act.

The trustee also sought damages and attorney's fees under both the federal and state statutes. The bankruptcy court found the loan company did violate the TILA and entered a default judgment for the trustee by granting the objection to the proof of claim, but denied the motion for damages and fees.

The 9th Circuit determined the trustee was not entitled to statutory damages and that consumers may not recover such damages.  

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions