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A group of collection agencies and debt buyers recently 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.