Robo-Signing Controversy
The case Vassalle v. Midland Funding LLC, 11-3814, U.S. Court of Appeals for the Sixth Circuit (Cincinnati) was held to determine if Encore Capital Group used illegal collection tactics to collect funds from 1.44 million consumers. The suit alleged that Encore's Midland Funding unit's used affidavits approved by staff without personal knowledge of their validity, a process commonly known as "Robo-Signing." A negotiated settlement of $5.2 million dollars was objected to by the FTC, American Association of Retired Persons (AARP), the National Consumer Law Center and 38 U.S. state attorneys general. In February 2013 the settlement was overturned by the 6th circuit court of appeals, who described the final payout of $17.38 per litigant as "perfunctory at best." The court also objected to the negotiated one year injunction on the grounds that Encore's subsidiaries would then be "free to resume its predatory practices." The ruling reversed the decision of Judge David Katz of Toledo and returned the case to him for further proceedings.
Read more about this topic: Encore Capital Group
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