Economic Justice
Challenging a Debt Buyer’s Widespread Use of Allegedly Fraudulent Evidence in Debt Collection Cases Statewide
Case Overview
Our Organizational Client
Public Counsel represents Lisa Neville in a debt-collection lawsuit brought by Credit Corp Solutions, Inc., a debt buyer that claims Ms. Neville owes money on a charged-off credit card account. Ms. Neville denies Credit Corp’s claim and has filed a cross-complaint alleging that Credit Corp relied on allegedly manufactured assignment documents to sue her and other consumers across California.
The cross-complaint alleges that Credit Corp has used the same “page 6 of 81” spreadsheet template in multiple debt-collection cases, inserting different consumers’ information into what appears to be the same assignment record. Ms. Neville alleges that this practice allows Credit Corp to pursue collection lawsuits without valid proof that it owns the debts it seeks to collect.
Ms. Neville brings claims under the California Fair Debt Buying Practices Act, the Rosenthal Fair Debt Collection Practices Act, the Unfair Competition Law, and fraud. She seeks public injunctive relief to stop Credit Corp’s alleged use of manufactured assignment documents, along with actual damages, statutory damages, punitive damages, attorney fees, and costs.
Public Counsel represents Ms. Neville with pro bono co-counsel Shook, Hardy & Bacon L.L.P. Since Public Counsel appeared in the case, the Court has granted Ms. Neville leave to file her cross-complaint, denied Credit Corp’s motion to compel arbitration, and reclassified the case as an unlimited civil action.
Court
Superior Court of the State of California, County of Los Angeles
Status
Pending
Case No.
25CHLC17110
Filed
04/16/2025
Case Developments
FIling
05/27/2026
Ms. Neville Files Cross-Complaint Against Credit Corp
Ms. Neville filed her cross-complaint against Credit Corp. The cross-complaint alleges that Credit Corp relied on allegedly manufactured assignment documents in this case and in other debt-collection cases, and seeks public injunctive relief, damages, statutory penalties, punitive damages, attorney fees, and costs.
ruLING
05/20/2026
Court Denies Arbitration and Grants Leave to File Cross-Complaint
The Court denied Credit Corp’s motion to compel arbitration and stay the case. The Court also granted Ms. Neville’s motion for leave to file a cross-complaint.
ORDER Denying Motion to Compel Arbitration and Granting Leave to File Cross-Complaint
FILING
04/20/2026
Credit Corp Files Reply in Support of Arbitration
Credit Corp filed its reply in support of its motion to compel arbitration and stay the proceedings, arguing that the alleged PayPal Credit arbitration provision applied to Ms. Neville’s claims.
Credit Corp’s Reply in Support of Motion to Compel Arbitration
FILING
04/14/2026
Ms. Neville Opposes Credit Corp’s Motion to Compel Arbitration
Ms. Neville opposed Credit Corp’s motion to compel arbitration. She argued that Credit Corp had not established an enforceable arbitration agreement covering her claims and that her public injunctive relief claim could not be forced into private arbitration.
Filing
01/29/2026
Credit Corp Moves to Compel Arbitration
Credit Corp moved to compel arbitration and stay the case based on an alleged arbitration provision in a PayPal Credit agreement.
Credit Corp’s Motion to Compel Arbitration and Stay Proceedings
Filing
01/26/2026
Ms. Neville Files Reply in Support of Cross-Complaint Motion
Ms. Neville filed a reply brief arguing that leave to file her cross-complaint should be granted because California law favors resolving related claims in the same action and because the proposed claims arose from Credit Corp’s prosecution of the debt-collection lawsuit.
Ms. Neville’s Reply in Support of Motion for Leave to File Cross-Complaint
Filing
01/21/2026
Credit Corp Opposes Ms. Neville’s Cross-Complaint Motion
Credit Corp opposed Ms. Neville’s motion for leave to file a cross-complaint, arguing that the proposed cross-complaint was improper and should not be added to the case.
Credit Corp’s Opposition to Motion for Leave to File Cross-Complaint
Filing
11/18/2025
Ms. Neville Moves for Leave to File Cross-Complaint
Ms. Neville moved for leave to file a cross-complaint and to postpone the then-scheduled trial date. The proposed cross-complaint alleged that Credit Corp relied on false or misleading assignment documents in support of its debt-collection lawsuit.
Filing
07/11/2025
Ms. Neville Files General Denial
Ms. Neville filed a general denial, disputing Credit Corp’s debt-collection claims and asserting affirmative defenses, including lack of standing, failure to state a claim, statute of limitations, and violations of debt-collection laws.
Filing
04/16/2025
Credit Corp Files Debt-Collection Lawsuit Against Lisa Neville
Credit Corp filed a debt-collection lawsuit against Ms. Neville seeking $2,064.89 on an alleged charged-off PayPal Credit account. The complaint attached documents that Ms. Neville later challenged as fraudulent or misleading evidence of assignment and ownership.
