Nebraska

TexasTowelie

(113,214 posts) Sat Dec 3, 2016, 09:52 AM Dec 2016

Lawsuit against Nebraska debt collector settled for $198,000

LINCOLN, Neb. (AP) — A Grand Island based debt collection company has agreed to pay a $198,000 settlement in a class-action lawsuit that accused the company of violating federal law.

The Lincoln Journal Star reports that the settlement ends a legal fight Laura Powers and Nichole and Jason Palmer brought against Credit Management Services in 2011.

Federal courts have previously ruled that debt collectors can't collect attorney's fees or interest from people without first receiving judgment from a court in a debt case. Court documents say Credit Management Services tried to do so when the company sought payment for medical bills.

Under the settlement, 11,552 claimants will receive a proportional share of the $198,000 payout. Credit Management Services didn't admit liability.

Read more: http://www.starherald.com/news/regional_statewide/lawsuit-against-nebraska-debt-collector-settled-for/article_3b6693d2-b8de-11e6-a76b-d3be0709cbf9.html

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Lawsuit against Nebraska debt collector settled for $198,000 (Original Post) TexasTowelie Dec 2016 OP

By my calculations, Fortinbras Armstrong Dec 2016 #1

The article did say it was proportional payments so the total will vary TexasTowelie Dec 2016 #2

Fortinbras Armstrong

(4,473 posts)

1. By my calculations,

Reply to TexasTowelie (Original post)

Sat Dec 3, 2016, 08:10 PM

Dec 2016

That comes out to $17.14 per claimant. Less attorney's fees?

TexasTowelie

(113,214 posts)

2. The article did say it was proportional payments so the total will vary

Reply to Fortinbras Armstrong (Reply #1)

Sat Dec 3, 2016, 08:14 PM

Dec 2016

based upon their medical bills. After subtracting the legal fees a few people might get enough to buy groceries for a week if they don't eat extravagantly.

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