Culik Law Sues Debt Buyers LVNV Funding and Midland Funding in Massachusetts Class Actions
The lawsuits allege that LVNV and Midland are engaged in unlicensed debt collection. Massachusetts requires that debt collectors must obtain licenses from the state in order to operate. LVNV and Midland’s actions — suing consumers for bad debts, credit reporting, and collecting on judgments — constitute debt collection, and thus they must be obtain licenses, alleges the lawsuit.
LVNV and Midland have previously argued that their operations are “passive” and thus they are not required to obtain licenses. But in court filings in federal court, Midland admits to having collected over $18 million dollars from over 30,000 Massachusetts consumers in the course of just one year.
LVNV filed a motion to dismiss the lawsuit, but a Superior Court judge denied the motion and allowed the lawsuit to proceed. Litigation is ongoing in both cases.