Sued Over Old Debt, and Blocked From Suing Back – The New York Times

“Mr. Cain said he never knew the lawsuit had been brought against him until the money was gone. Neither did other Baltimore residents who were among the hundreds of people sued by the collector, Midland Funding, a unit of the Encore Capital Group, in Maryland State Court. Some of them said they did not even owe any money, or their debt had long expired and was not legally collectible, according to a review of court records.In any case, the Encore subsidiary was not licensed to collect debt in Maryland.Yet when Mr. Cain brought a class action in 2013 against Midland Funding, the company successfully fought to have the lawsuit dismissed.If the plaintiffs wanted to try to recover their money, they would have to do so in private arbitration. And because class actions are banned in arbitration, Mr. Cain and the others would have to fight the unit of Encore — one of the largest debt buyers in the country with vast legal resources — one by one.”

Source: Sued Over Old Debt, and Blocked From Suing Back – The New York Times

1 thought on “Sued Over Old Debt, and Blocked From Suing Back – The New York Times

  1. From the comments at the NYT, one of my favorite writers:
    Christine McMorrow is a trusted commenter Waltham, MA 1 hour ago

    ” “It’s beyond hypocritical that the companies can use arbitration to avoid being held accountable in court, all the while using the courts to collect from consumers,” said Peter A. Holland, a lawyer who ran the Consumer Protection Clinic at the University of Maryland’s law school.”

    Another nail in the coffin of justice in America. These predatory practices on the most vulnerable are a horror to read. It’s especially enraging to read they’re collecting debts that have passed the statute of limitations.

    But even worse than these scummy debt collection companies are the judges that defy common sense in allowing this exploitation to continue. The debt collector can steal a person’s bank account, even if the debt is wrongly assigned or too far past due to be collected. Shoot first, and figure it out later, leaving consumers helpless to fight since they are usually poor and lack the resources to hire a lawyer for arbitration.”


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