Modesto councilman sued over credit card debt

Citibank is suing Modesto Councilman John Gunderson, claiming he owes the bank $14,577.67 in credit card debt.

Gunderson said he is no spendthrift but needed to rely on his credit cards for essentials during the recession. He said he accumulated about $30,000 in debt on several credit cards before paying them down or off, except for the Citibank card.

He said he was making payments on the Citibank debt when he was sued and wants to resolve the matter with a payment plan. “I don’t think I’m a bad person,” he said. “Circumstances put me in a bad spot. I’m not a free spender. I’m pretty tight.”

Gunderson, 58, was elected to the council in November 2011 and is up for re-election in the fall. He represents the council’s District 1, which covers northwest Modesto. He earns $24,000 a year as a councilman and supplements that by working as a substitute teacher. He said his wife is not working.

Gunderson said he plans to run for re-election and believes voters will understand that his financial issues make him a true representative of the city, which took a beating in the Great Recession. “I’m a face of Modesto in that sense,” he said.

Lawyers for Citibank filed the lawsuit in June 2014 in Stanislaus Superior Court. Court records show a trial is set for June.

Gunderson said he is frustrated by how long it has taken to resolve the matter. He claims his attorney – Kevin King of San Francisco – has not returned phone calls or emails since late last year. King denied that in an email to The Bee.

“While my office does not discuss the details of matters in ongoing litigation, I will tell you this: Mr. Gunderson’s case is active, and I have responded to each and every one of his communications, be it by telephone or email,” King wrote.

“If you would like to discuss Mr. Gunderson’s case in greater detail,” King continued, “you will need to provide a written authorization, signed by Mr. Gunderson permitting me to divulge his otherwise confidential and legally privileged information to a complete stranger. Alternatively, you can contact opposing counsel for Citibank and inquire as to why they have failed to respond to my several attempts and offers to resolve the matter.”

When told about King’s response to his claim, Gunderson said: “That’s bizarre.”

Citibank is represented by the San Jose law firm of Hunt & Henriques. An attorney there said the firm cannot discuss the lawsuit against Gunderson.

This story was originally published April 8, 2015 at 3:04 PM with the headline "Modesto councilman sued over credit card debt."