Minnesota AG Sues Florida Debt Buyer Over Fake Affidavits

October 30, 2013
Minneapolis Star Tribue (Minnesota)  
debt settlement news

Minnesota Attorney General Lori Swanson is suing Florida-based United Credit Recovery LLC, a major buyer of overdraft debt from Minnesota banks, for allegedly producing reams of fake bank affidavits to use in debt collections. The electronically robo-signed documents were used on a “mass scale” for years, persuading people that they owed money and convincing courts to award judgments and to raise the value of portfolios for resale, according to the Oct. 30 complaint filed in Hennepin County District Court.

United Credit Recovery acquired more than 2 million accounts from Wells Fargo and U.S. Bank between 2007 and 2011 but also purchased from other institutions such as Bank of America. Swanson estimates that at least several thousand Minnesotans were impacted. She is seeking an injunction to stop the fabrications and is requesting a list of where in Minnesota the affidavits were distributed as well as civil penalties. The lawsuit is asking $25,000 for each violation of the state’s deceptive trade practices act.

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