Nebraska Debt Collection Suit Can Be Class Action

July 16, 2013
Omaha World-Herald  
debt settlement news

A complaint against Credit Management Services can proceed as a class-action lawsuit that could include up to 27,000 Nebraska consumers, U.S. District Judge Joseph F. Bataillon has ruled. The decision stems from litigation filed two years ago in U.S. District Court in Omaha by three state residents. The suit alleges that Credit Management violated federal debt collection laws by falsely claiming that payment requests were sent 90 days before the filing of collection lawsuits. The consumers also allege that Credit Management requested financial information -- such as copies of tax returns and pay stubs -- after it had filed collection suits, which also violates federal debt collection laws by deceiving consumers "into believing such information must be provided in order to defend the collection lawsuit." According to court documents, the plaintiffs' attorneys contend that 27,000 people in Nebraska were sued by Credit Management during the relevant periods -- which go back four years -- while Credit Management contends that there are only 5,000.
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