GM Finance Unit Sued for Billing Bankrupt

General Motors Acceptance Corp., the consumer finance unit of the world’s No. 1 auto maker, is being sued for allegedly trying to collect on a loan from a consumer during his bankruptcy proceedings. Detroit-based GMAC telephoned Jesus Chaide Ramirez, sent him monthly statements and default notices even after he had filed for bankruptcy protection last year, according to the suit filed in U.S. Bankruptcy Court in Los Angeles. The complaint, which seeks nationwide class-action status, claims GMAC’s actions violated provisions of the U.S. Bankruptcy Code that grant debtors temporary and permanent relief from creditors. GMAC, which has lines of business in automobile financing, insurance and commercial and residential mortgages, is one of the world’s largest financial services companies, with assets and outstanding loans totaling more than $250 billion as of March. The claims against GMAC are similar to those made against Sears, Roebuck & Co., the largest U.S. department-store company, which has been accused of using illegal tactics to collect debts from bankrupt customers. Ramirez’s suit seeks compensatory and punitive damages and a court order that would prohibit GMAC from engaging in any unlawful debt collection practices. It was filed Friday in U.S. Bankruptcy Court in Los Angeles, and identifies Ramirez as a Hacienda Heights resident who has paid GMAC $2,205 as a result of its allegedly illegal collection efforts.