Woman Sues Debt Collector, Wins $8.1 Million

Mon Apr 05, 2010 at 07:01:47 AM PDT

At courthouses across the United States, it has become increasingly
common during the economic downturn for lawsuits to be filed against
consumers to collect old debts. Lawyers who specialize in the practice
are filing thousands of suits on behalf of large firms that have
acquired debts from other companies. Although most people don't fight
the suits and lose them by default, a Dallas woman bucked the trend last
October.

Chrystal A. Snow challenged the validity of a $9,000 debt in a Dallas
County Court-at-Law and countersued the debt collector for making
improper phone calls, her attorney Ross Teter said. In a case that has
received no media attention, Snow won her suit against Midland Funding
LLC and the jury hearing the case awarded her $8.1 million -- $250 for
actual damages, $100,000 for mental anguish and $8 million in punitive
damages, he said.

"The jury made a finding she did not owe the debt," Teter said in a
phone interview. "We argued that they violated the Texas Fair Debt
Collection Act by making harassing phone calls and the jury agreed."

Midland Funding is a subsidiary of Encore Capital Group, a company whose
primary business is the acquisition and collection of "charged-off
consumer receivable portfolios," according to its 2009 annual report
filed with the Securites and Exchange Commission.

"We acquire receivable portfolios at deep discounts from their face
values," the annual report states. "[W]e have invested approximately
$1.4 billion to acquire 28.8 million consumer accounts with a face value
of approximately $43.8 billion."

As the owner of millions of long-overdue accounts from credit card,
auto, health care and phone companies, Encore has three call centers in
the U.S. and one in India to make collection calls. When these efforts
are unsuccessful, Encore has a nationwide network of attorneys to pursue
legal action for the full amount of the debt. If a creditor wins a
lawsuit, it can get a court order to seize bank accounts, garnish
paychecks and claim other assets. Consumers can find themselves on the
hook for the debt plus interest, penalties and legal fees.

"We generally refer accounts for legal action where it appears the
debtor is able, but unwilling, to pay their obligations," the annual
report states. "We pay the law firms a contingency fee based on amounts
they collect on our behalf."
--

Lifted from KOS...

On 05/04/2010 9:39 AM, hk wrote:
Woman Sues Debt Collector, Wins $8.1 Million

Mon Apr 05, 2010 at 07:01:47 AM PDT

At courthouses across the United States, it has become increasingly
common during the economic downturn for lawsuits to be filed against
consumers to collect old debts. Lawyers who specialize in the practice
are filing thousands of suits on behalf of large firms that have
acquired debts from other companies. Although most people don't fight
the suits and lose them by default, a Dallas woman bucked the trend last
October.

Chrystal A. Snow challenged the validity of a $9,000 debt in a Dallas
County Court-at-Law and countersued the debt collector for making
improper phone calls, her attorney Ross Teter said. In a case that has
received no media attention, Snow won her suit against Midland Funding
LLC and the jury hearing the case awarded her $8.1 million -- $250 for
actual damages, $100,000 for mental anguish and $8 million in punitive
damages, he said.

"The jury made a finding she did not owe the debt," Teter said in a
phone interview. "We argued that they violated the Texas Fair Debt
Collection Act by making harassing phone calls and the jury agreed."

Midland Funding is a subsidiary of Encore Capital Group, a company whose
primary business is the acquisition and collection of "charged-off
consumer receivable portfolios," according to its 2009 annual report
filed with the Securites and Exchange Commission.

"We acquire receivable portfolios at deep discounts from their face
values," the annual report states. "[W]e have invested approximately
$1.4 billion to acquire 28.8 million consumer accounts with a face value
of approximately $43.8 billion."

As the owner of millions of long-overdue accounts from credit card,
auto, health care and phone companies, Encore has three call centers in
the U.S. and one in India to make collection calls. When these efforts
are unsuccessful, Encore has a nationwide network of attorneys to pursue
legal action for the full amount of the debt. If a creditor wins a
lawsuit, it can get a court order to seize bank accounts, garnish
paychecks and claim other assets. Consumers can find themselves on the
hook for the debt plus interest, penalties and legal fees.

"We generally refer accounts for legal action where it appears the
debtor is able, but unwilling, to pay their obligations," the annual
report states. "We pay the law firms a contingency fee based on amounts
they collect on our behalf."

It is why it is stupid to lend money to low life losers with poor
ratings and poor future potential for payback.

Now if she really didn't owe the money...I would agree with the
settlement. But they will appeal.

Next, I bet the welsher will sue because she can't get a loan for the
home, car or a credit card.

--
Liberal-statism is an addiction to other peoples money.