Settlement Finalized with Debt Collector and Debt Buyer First Resolution Investment Corporation
Providing relief to thousands of Massachusetts consumers, a class-action settlement with the debt buyer and debt collector First Resolution Investment Corporation has been approved by a judge of the Superior Court.
Together with co-counsel, Culik Law had sued First Resolution Investment Corporation (FRIC) alleging that FRIC violated the Massachusetts Consumer Protection Act, Chapter 93A, by failing to register with the state as a debt collector. The lawsuit also alleged that FRIC violated the law by failing to register with the Secretary of the Commonwealth. Declaratory and injunctive relief were requested, along with damages.
After the filing of dispositive motions by both sides, FRIC ultimately settled the case. The settlement provides for forgiveness of over $22 million in forgiveness of combined account balances and interest. A total of $1.5 million in refunds will also be paid to consumers.
At a hearing in May, a justice of the Superior Court Business Litigation Session issued a final approval order, approving the settlement.
Consumers affected by the FRIC settlement need not do anything else at this point. A website, https://www.firstresolutionsettlement.com/, was set up to process consumers claims, and the deadline to submit claims was in April.
This case stands out as a success, especially in light of the Supreme Judicial Court’s adverse decision in the case of Dorrian v. LVNV. That case held that some so-called “passive” debt buyers need not register with the state as debt collectors.
Culik Law is a Boston, Massachusetts law firm. Our attorneys champion the rights of consumers against debt collectors, banks, and other financial institutions. If you feel you have been wronged, contact us to see if we can help.