West Virginia sued two units of debt buyer Encore Capital Group Inc. (ECPG), claiming the firms used false affidavits in lawsuits and took part in fraudulent debt-collection practices.
State Attorney General Darrell McGraw said in a statement he sued Midland Funding LLC and sister company Midland Credit Management, both part of San Diego, California-based Encore Capital. The suit, filed today in state court in Charleston, alleges that the two firms robo-signed affidavits when obtaining default judgments against West Virginia consumers.
“Many consumers are frightened or unaware of their rights when they are sued and fail to respond to these groundless lawsuits, leaving them subject to judgments on debts that cannot be proved,” McGraw said in the statement.
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