OKLAHOMA CITY – Officials say hundreds of Oklahomans who were victims of a debt-buying scheme will receive part of a nationwide settlement.
On Tuesday, Oklahoma Attorney General Mike Hunter announced that 266 Oklahomans who were victims of Midland Funding, LLC’s debt-buying scheme will receive $327,437 in credit as part of a nationwide settlement.
It’s the result of a 2012 multi-state investigation into Encore Capital Group, Inc. and its subsidiaries Midland Credit Management, Inc. and Midland Funding, LLC.
Debt buying involving buying and selling overdue debts from creditors, and then trying to recover the full balance from consumers.
Investigators found that between 2003 and 2009, Midland signed and filed affidavits to collect consumer debt without verifying the information contained in the affidavits.
“The practice that was undertaken by Midland is inexcusable,” Attorney General Hunter said. “Affected individuals often could not afford attorneys to defend themselves, resulting in a default judgment, which hurt their credit and resulted in their wages being garnished. That is another reason why as part of the settlement we required the company to include safeguards in its collecting practices so customers won’t be taken advantage of again.”
Each individual will receive a different amount of credit toward his or her account. The company will notify impacted customers by mail of the amount by which their balance will be reduced.