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Historic $10M Settlement Reached in Debt Collection Class Action

Greenville, SC: Thousands of people have been forgiven their debts in a historical unfair business class action settlement reached Friday in Maryland. The class action lawsuit was brought by Jason Hauk and Freddy Velazquez who led the class action suit, against LVNV Funding LLC, a Greenville, SC-based company that buys consumer debt.

According to the terms of the settlement some 3,500 people in the class will receive about $2000 each, for a total of $7 million. The total settlement forgives about $10 million in debt, according to filings in U.S. District Court in Baltimore.

Further, LVNV will not pursue the 3,500 debtors in order to collect the debt, nor will they be able to sell those debts to other third party collection agencies. And LVNV have to remove information it gave to the major credit bureaus for each of those debtors, a step taken to improve their credit ratings. The settlement is being hailed as historic, and a major win for the class.

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Last updated on Sep-12-11