LINCOLN (Legal Newsline) — One of the largest debt buyers in the United States has reached a $6 million settlement with 42 states to resolve charges relating to its litigation and collection procedures.
According to the Nebraska Attorney General's Office, Encore Capital Group and its subsidiaries Midland Credit Management and Midland Funding failed to verify information on affidavits filed in state courts, known as "robo-signing," when attempting to collect some debts through litigation.
“Debt buyers must be held to the same standards as any other creditor when providing consumers – and the courts – with accurate and truthful information," Nebraska Attorney General Doug Patterson said in a statement.
The settlement includes Midland taking away or reducing "judgement balances" on nearly 70 customers in Nebraska who the company used an affidavit against in court, the Attorney General's Office said. Midland will also provide each state involved in the settlement with $25,000 to compensate consumers affected by the company's failure to verify court documents, according to Patterson's Office.