Nebraska to share in $6M, 42-state settlement with debt buyer
Nebraska will get an $81,947 share of a $6 million, 42-state settlement with Encore Capital Group Inc., one of the nation’s largest debt buyers, over its collection practices, according to documents filed Tuesday in Lancaster County District Court.
Nebraska Attorney General Doug Peterson said the settlement follows an investigation by the states into claims the company and its subsidiaries signed and filed affidavits in large volumes in state courts without verifying the information in them, a practice commonly called robo-signing.
Midland must reform its affidavit signing and litigation practices as part of the settlement.
“Debt buyers must be held to the same standards as any other creditor when providing consumers – and the courts – with accurate and truthful information,” Peterson said.
Nebraska’s portion of the money will go to the state settlement cash fund.
Midland also will eliminate or reduce judgment balances for 67 Nebraska consumers for a value of $75,816 in cases filed between 2003 and 2009.