The Encore Capital Group Inc announced that the federal court already made an approval of an agreement that allows the firm to have a contentious settlement to a class action suit saying that the firm used faulty affidavits to be able to succeed in repayment cases.
Attorneys general in various states participated in the settlement and said that this can make it much more difficult for authorities from the law enforcement industry to have proper regulations that will bind the sector.
The agreement was signed last Friday in Federal Court in the Northern District of Ohio. This had 1.4 million class members that were included in the class action suit to let go of claims against Encore in exchange for money amounting to $5.7 million.
The attorneys general who participated in the filing were Lori Swanson of Minnesota and Greg Abbott of Texas. Both of them have suits that said Encore “robo-signed” affidavits in order to allow them to gather the debt of various individuals who reside in Texas and Minnesota.
According to Encore Chief Executive Brandon Black, “As the judge indicated at the fairness hearing, there have been many 'rash' allegations made against the company that simply had no basis in fact.”
Encore has reiterated that they actually had some alterations in their affidavit process back in 2009 which included a revised language so that it can be understood that it was specifically under a review of business records.
Encore’s general counsel said, “After years of litigation by multiple plaintiffs, there was no evidence that the company's account data were false.”
Tags: class action suit, Product Issues, multiple plaintiffs, contentious settlement, Encore Capital Group Inc
