Idaho Enters $6 Million Settlement With Debt Buyer

BOISE, Idaho – Idaho is entering a $6 million settlement with one of the nation’s largest debt buyers, according to Attorney General Lawrence Wasden.

The settlement is with Encore Capital Group Inc. and its subsidiaries Midland Credit Management Inc. and Midland Funding LLC., and involves 41 other states and the District of Columbia. The settlement follows a six-year investigation.

According to a news release from Wasden’s office,

The settlement resolves the states’ investigation into Midland’s collection and litigation practices that involved Midland robo-signing large volumes of affidavits without verifying the information and filing lawsuits without proof of the underlying debts.

Midland now must completely eliminate or reduce the judgment balances of accounts in cases where it used an affidavit in court between 2003 and 2009.

This requirement impacts 26 Idaho accounts for a total consumer benefit of $39,295. Additionally, Midland is setting aside $25,000 to compensate Idaho consumers who may have paid the company money they didn’t actually owe. Consumers eligible for benefits under the settlement will receive a mailed notice from Midland.

Midland must pay $79,000 to the state to help cover costs of the investigation.

“Consumers often find themselves at the mercy of aggressive debt collectors, unable to afford attorneys, and doing battle on their own,” Wasden said in the prepared statement. “They can wind up with judgments for more than the original debts, damaged credit, and the possibility of wage garnishments. This settlement helps level the playing field.”