LIVE HELPAvailable
Live CHAT
Click to CalL
Call Now
STOP Collector Blog From the law firm of Lemberg & Associates

FTC, AGs Oppose Midland Funding Class Action Settlement

The Federal Trade Commission has filed an amicus brief in the U.S. District Court for the Northern District of Ohio, opposing a class action settlement in Vassalle v. Midland Funding LLC, its parent company Encore Capital Group, and Midland Credit Management. The lawsuit alleges that the debt buyer and debt collector violated the Fair Debt Collection Practices Act and related state law by engaging in the robo-signing of affadavits.

According to the FTC’s press release, if the court accepts the proposed settlement, “class members will have to give up too much in exchange for too little.” The settlement proposes that class members receive a maximum payment of $10, for which they’d “surrender their rights under the FDCPA and state laws to challenge Midland’s actions related to the company’s use of affidavits in debt collection lawsuits. This would include, the FTC argues, perhaps even the right to challenge improper default judgments obtained by Midland.”

The FTC’s amicus brief follows on the heels of the opposition of 38 state Attorneys General. According to the Wall Street Journal, the AGs argued that “approval of the deal would help the debt collection industry dodge enforcement actions by state officials,” and that Midland and Encore could use the settlement to argue that similar robo-signing lawsuits in other jurisdictions should be thrown out.

The judge in the case is scheduled to rule on the proposed settlement July 11.

Comments

Your email address will not be published. Required fields are marked *

Lemberg & Associates’ team
of consumer attorneys is highly
skilled and ready to help you
with debt collector abuse.

If you have been the victim of harassment or illegal or unfair debt collection practices, Lemberg & Associates will discuss your options with you and protect your rights. For more information, contact Lemberg & Associates today at .

Learn More About Us 
Start Free Legal Consultation
Fill out form:
Please wait...
Your information is kept 100% confidential.
We do not spam or sell your information.
Author
Sergei Lemberg

Sergei Lemberg is the principal at Lemberg & Associates, a consumer law firm that defends consumer rights in the areas of fair debt collection law, fair credit law, and lemon law, among others. He is regularly labeled by the debt collection industry as one of the “most active consumer attorneys” in the U.S.

Contact Us

Lemberg & Associates
100 Summer Street
Stamford, CT 06905
855-229-9506
info@lemberglaw.com

Find out how we can
help you stop debt
collector harassment
Get Free Legal Help 

"The FDCPA is a consumer protection statute and was intended to permit, even encourage, attorneys like Lemberg to act as private attorney generals to pursue FDCPA claims."

U.S. Ninth Circuit Court of Appeals, Evon v. Law Offices of Sidney Mickell
Follow Us on Twitter