Debt Buyer to Pay $150,000 in Class Action Settlement
Plaintiffs' attorneys recently announced a settlement in a class action lawsuit against a major debt buyer for around $150,000. An additional $66,000 will go to the lawyers that brought the case for their troubles.
A class action lawsuit against a debt purchaser was recently settled, resulting in payments of approximately $150,000 to nearly 2,800 Nebraskans that were members of the class.
Omaha, Neb.-based lawyers Pamela Car and Bill Reinbrecht told the Associated Press that they have settled a class action lawsuit against Unifund. The settlement has already gained preliminary approval from a federal judge, with final approval scheduled for October 9.
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Calls by insideARM to Unifund were not returned.
The plaintiffs’ attorneys said that Unifund filed collection lawsuits against consumers on debt that was beyond the statute of limitations and attempted to collect attorney fees in cases where it was prohibited. The case alleged that about 530 legal cases were filed beyond Nebraska’s four-year statute of limitations.
The two lead plaintiffs in the case, Christina Williamson and Galin Brown, will receive around $5,500 each. The settlement requires Unifund to compensate members of the class through either a small payment or a reduction in the amount they owe.
Class members who paid off the debt Unifund was trying to collect will receive a payment of around $50-$65, depending on how many people qualify. People who still owe money will have their debt reduced by as much as $125.
Separate from the settlement, Unifund must pay Car and Reinbrecht $66,000 for attorneys fees.
The preliminary agreement notes that the plaintiffs chose to settle before trial because of the risks and difficulties in recovering more than the settlement provides.
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Comments
Comment from SpyBoy on August 15, 2009 at 8:04AM EST
Greetings,
As a matter of fact, the plaintiffs attorneys did not get rewarded " for their troubles ", but rather, as compensation, for their investment of time,energy,and skill. They did their job, they won ( this time ), and they got paid.
Thank You, SpyBoy
Comment from allylegal on August 15, 2009 at 1:58AM EST
Unfortuately, of course, the lawyers are the one's that get all the money recovered. It is a joke was the class members get as well as the class plaintiffs compared to what the lawyers get. So is it really a win and justice in the debt payers corner? I suppose if I were a lawyer in the plaintffs corner I would think so.
Comment from Illlinois on August 17, 2009 at 10:57AM EST
Sounds like another "all we have is a spreadsheet" type of debt collection action.