Bohemia, NY (PRWEB) March 02, 2013
On March 2, debt collection agency Rapid Recovery Solutions issues a response to an article from Reuters on the U.S. appeals court’s decision to overturn a recent settlement involving another debt collection company.
According to Reuters, “a controversial $5.2 million settlement intended to resolve allegations that [the agency] used false affidavits and other illegal tactics to collect debts from 1.44 million consumers.” However, that decision is now being voided after it was decided that Judge David Katz abused his discretion when he approved the settlement.
The company and its subsidiaries were being sued after accusations that the employees were “robo-signing” affidavits to collect debt from people that didn’t owe anything. “More than 133,000 class members had filed claims under the settlement, while 4,262 opted out and 61 objected,” according to the article. Eric Schneiderman, New York’s attorney general, led a group of 38 different states' attorneys general, saying hat the settlement deprived consumers of their rights.
“[The company] typically buys debt from credit card companies. Last year, it invested $562.3 million to buy accounts with a face value of $18.5 billion, equal to about 3 cents on the dollar,” according to the article. The case will return to the courts for further litigation.
The case is Vassalle et al v. Midland Funding LLC et al, 6th U.S. Circuit Court of Appeals, Nos. 11-3814, 11-3961, 11-4016, 11-4019 and 11-4021.
John Monderine, CEO of the collection agency Rapid Recovery Solutions, responded to the case. “Collection agencies should never use fraudulent or deceptive practices to collect money from a debtor,” he said. “While most do not do this, the collectors that do should be suffer the consequences. It’s good to know that this case will return to the courts, especially since the settlement is not fair to those that suffered from unfair collection practices.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.