Class Action Settlement Reached Under FDCPA

A group of collection agencies and debt buyers Justice _scalerecently settled a class action lawsuit that
was filed against them for $575,000.  The defendants are all
related companies that were sued on behalf of 3,000 consumers in
Maryland. 
 
In the case of Winemiller, et al. v. Worldwide Asset Purchasing,
et al. it was alleged that the companies were not properly licensed
to collect in Maryland and that they “consistently misstated the
total amount of the principal, wrongly including interest and fees
in the principal calculation,” in violation of the
Fair Debt Collection Practices Act (FDCPA)
. Further, the case
alleged that some of the debts pursued in court were beyond the
statute of limitations. 

The case was filed in 2009, and in April of 2011 the court ruled
for the Plaintiff’s on a motion to dismiss the case, thereby paving
the way for this class action to proceed.  In March of this
year the defendants settled the case.  The class
representatives will receive between $7,500 and $10,000, and the
remaining class member will receive up to $500.  However, any
pending legal actions against the debtors will be dropped and the
debts will be removed from their credit reports.   A
great victory for consumers!

SmithMarco, P.C., has over 30 years of
combined experience practicing law protecting the rights of
consumers around the country.  Contact us
today for a free consultation.