Maryland District Court Chief Judge Ben C. Clyburn wiped the slate clean on about 3,600 lawsuits to collect debt that was initiated as the result of Resurgent Capital Services’ and LVNV Funding going after consumers.
The companies reached a settlement with the State of Maryland that included paying a $1 million dollar penalty and dismissing the 3,564 active lawsuits against consumers.
The two companies also agreed to pay $3.8 million in credits to Maryland consumers that had already been sued and their cases had been settled or determined by the court.
The issue revolved around collection law and collection licenses.
As part of the agreement the companies will have their collection licenses reinstated.
Cases against consumers that were dismissed under this matter will be eligible to be filed again. My best is they will be.