Maryland’s District Court this week dismissed more than 3,500 cases filed by a debt buyer and its collection agency as part of a settlement reached earlier this month with the State Collection Agency Licensing Board.
The cases were filed by LVNV Funding LLC and Resurgent Capital Services, L.P. and represent a total of around $7.7 million in outstanding balances. But since the cases were dismissed “without prejudice,” the companies have an opening to refile them at a later date.
The settlement, announced in early July, also calls for the companies to pay credits totaling over $3.8 million which will be applied to the accounts of over 6,200 consumers whose cases have already been adjudicated or settled.
Licensing issues were at the heart of the case and subsequent settlement. The companies and regulators in Maryland noted that Resurgent cooperated fully.
“We are pleased that we have been able to reach such a positive and amicable resolution of all outstanding issues with the DLLR,” said Tom Thurmond, Executive Vice President of Resurgent. “We are committed to working proactively with all regulators in a manner that reflects our dedicated concern for consumer protection and our commitment to ethical corporate behavior.”
“This settlement highlights the continuing efforts of our Collection Agency Licensing Board to oversee collections activities of all types, including those related to collections litigation,” said Mark A. Kaufman, Maryland Commissioner of Financial Regulation.
- The Debt Collection Compliance Handbook
- “Guaranteeing” Compliance
- The Future of Compliance for the Debt Collection Industry
- Collection Law Firm Financial Benchmark Report 2011
- Collection Agency Financial Benchmark Report 2011