On March 30 2015, the Suffolk Superior Court denied the motion of LVNV Funding to dismiss the class action lawsuit challenging its right to collect consumer debts from Massachusetts residents without a license. The complaint alleges that LVNV must be licensed by the Division of Banks regardless of the fact that it owns the debts which it seeks to collect. The case seeks to recover all monies which LVNV has collected from Massachusetts consumers from August 22, 2010 through the present, as well as seeking other relief such as voiding court judgments and dismissing pending collection actions. As a result of the Court’s decision, the parties are currently conducting discovery.
The case against Midland Funding, also filed in Suffolk Superior Court, involves identical claims as those asserted LVNV Funding and seeks similar relief for class members. Midland removed the case to federal court, an action which Plaintiff has challenged. Discovery and other progress in the Midland case are essentially on hold until the removal issue is decided.
By Kenneth D. Quat, Massachusetts Consumer Rights Attorney.
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