Kass Management Lawsuit: Everything You Need to Know

Kass Management Services, Inc. is a property management company headquartered in Chicago, Illinois. It manages a variety of condominium, residential, and commercial properties throughout the Chicago Metropolitan Area.

In 2020, Kass Management was sued by one of its condominium owners, Daniel O’Malley, for violating the Electronic Fund Transfer Act (EFTA). The EFTA prohibits businesses from automatically withdrawing money from consumers’ bank accounts without their written authorization.

O’Malley alleged that Kass Management had automatically withdrawn monthly settlement payments from his bank account without his written authorization. O’Malley filed the lawsuit on behalf of a proposed class of all persons whose bank accounts were automatically debited by Kass Management for a recurring legal fee through an electronic fund transfer.

Kass Management denied O’Malley’s allegations, but the parties eventually reached a settlement agreement. Under the terms of the settlement, Kass Management agreed to pay O’Malley $10,000 and to stop automatically withdrawing money from tenants’ bank accounts without their written authorization.

The Kass Management lawsuit is a reminder that businesses must comply with the EFTA when automatically withdrawing money from consumers’ bank accounts. Businesses should obtain written authorization from consumers before making any automatic withdrawals from their bank accounts.

FAQs:

Q: What is the Electronic Fund Transfer Act (EFTA)?

The EFTA is a federal law that protects consumers from unauthorized electronic fund transfers. EFTA applies to electronic fund transfers made from a consumer’s account to a business’s account, such as automatic withdrawals for recurring bills or payments.

Q: What are my rights under the EFTA?

Under the EFTA, you have the right to give or withhold your consent to electronic fund transfers from your account. Businesses must obtain your written authorization before making any automatic withdrawals from your account. You also have the right to stop electronic fund transfers at any time by notifying the business in writing.

Q: What should I do if a business has automatically withdrawn money from my bank account without my permission?

If a business has automatically withdrawn money from your bank account without your permission, you should contact the business immediately and demand that they stop making any further withdrawals. You may also want to file a complaint with the Consumer Financial Protection Bureau (CFPB).

Q: Can I sue a business for violating the EFTA?

Yes, you can sue a business for violating the EFTA. If you are successful in your lawsuit, you may be entitled to damages, including the amount of money that was withdrawn from your account without your permission, as well as attorney’s fees and court costs.

Q: How do I find a lawyer to help me with an EFTA lawsuit?

You can find a lawyer to help you with an EFTA lawsuit by contacting your state bar association or by searching online for lawyers who specialize in consumer protection law.

Q: What are the chances of winning an EFTA lawsuit?

The chances of winning an EFTA lawsuit depend on the specific facts of your case. However, if you have evidence that the business violated the EFTA, you have a good chance of success.

Conclusion

The Kass Management lawsuit is a reminder that businesses must comply with the EFTA when automatically withdrawing money from consumers’ bank accounts. Consumers have the right to give or withhold their consent to electronic fund transfers from their accounts. If a business has automatically withdrawn money from your bank account without your permission, you should contact the business immediately and demand that they stop making any further withdrawals. You may also want to file a complaint with the CFPB.

References:

  • Casetext: O’Malley v. Kass Mgmt. Servs., Inc.: https://casetext.com/case/omalley-v-kass-mgmt-servs-inc
  • Better Business Bureau: Kass Management Services, Inc.: https://www.bbb.org/us/il/chicago/profile/property-management/kass-management-services-inc-0654-9000291

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