Back in 2007, a collection agency made headlines when it was taken to court for alleged deceitful practices in recovering a debt. In 2010, it would again find itself in hot water, this time with an Attorney General. If you are currently being contacted by a collection agency, the two cases below might be worth remembering and researching.
In Jancik v. cavalry portfolio services llc, the plaintiff originally rejected an offer to settle before obtaining a ruling on whether a class action lawsuit was possible. The collection agency then argued that this meant the dispute should be dropped. When the judge disagreed, the class action lawsuit was ruled appropriate. The judge stated that the Calvary Portfolio Services could not “buy its way out of class litigation merely by making a [settlement] offer prior to a plaintiff’s filing a motion for class certification.”
In 2010, the Attorney General of West Virginia broughtcavalry portfolio servicesup on charges of practicing in the state without a license. “Debt purchasers like the Cavalry companies have flooded the West Virginia courts with suits against financially unsophisticated consumers that often end in default judgments, garnishment of wages, and liens on homes – even without actual proof of the debt,” Attorney General Darrell McGraw was quoted to have said in a statement.
With these examples in mind, it’s important for debtors to understand that a collection agency is not infallible. Since 2002, cavalry portfolio services collection agency has purchased more than $20 billion worth of consumer debt. They are a big company operating across the country, but that doesn’t mean they don’t make mistakes consciously or otherwise.