Money economy generic

PHOENIX (3TV/CBS 5) -- Arizona Attorney General Mark Brnovich announced Tuesday that he, along with attorneys general of 41 other states and the District of Columbia, reached a multimillion-dollar settlement with Encore Capital Group, Inc., and Midland, one of the largest buyers of unpaid debt in the country. 

This settlement resolves the states' investigation into Midland's debt collection and litigation practices.

"Debt buyers should not be pursuing collections for discharged or time-barred debts, or submitting unverified information in litigation," said Brnovich. "Deceptive and unfair debt collection practices harm consumers and my office is committed to holding debt buyers accountable for those unlawful practices."

As part of the settlement, Midland will provide millions of dollars in debt relief to consumers nationwide, including roughly $1 million to hundreds of Arizona consumers.

This debt relief will reduce or completely eliminate the judgment balances for those consumers against whom Midland used an affidavit in court proceedings between 2003 and 2009.

Midland will notify eligible consumers by mail, and no further action from those consumers will be necessary.

In addition to the debt relief payments, Midland will also pay $6 million to the states and set aside an additional $25,000 per state to compensate certain consumers who might have paid Midland money that the consumers did not owe.

Further, the settlement requires Midland to reform its affidavit signing and litigation practices. It also protects consumers before litigation is filed, requiring, for example, that Midland review original account documents if a consumer disputes a debt and that the company maintain proper oversight and training for its employees and debt collection attorneys.

In addition, the agreement prohibits Midland from reselling debt for two years.

Assistant Attorneys General Beau Roysden and John Gray handled the investigation for Arizona.

 


Copyright 2018 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.

 

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