(This is why we work so hard on challenging the creditors directly. And, Master Credit Solutions (MCS) is one of a very, very few companies that will do this.)
The Minnesota Attorney General on Monday accused one of several nations’ largest debt collection firms of defrauding Minnesota courts and citizens by filing false and deceptive "robo-signed" affidavits -- generated at its offices in St. Cloud.
Midland Funding LLC, which also is one of the nation's top buyers of old personal debt from credit card companies and others, has been one of the most active in suing people over debt and seizing their bank accounts, wages and property through garnishment in Minnesota.
In a press release about a lawsuit filed Monday, Attorney General Lori Swanson alleged Midland created false and unreliable mass-produced, "robo-signed" affidavits as supposed "proof" of consumer debts in lawsuits against individual citizens in order to obtain judgments against or extract payments from people, most of whom had no attorney and some of whom had no knowledge of any alleged debt.
Robo-signing is the practice of signing off on mass-produced, computer-generated legal documents without reading them or verifying the truth of the contents in order to speed up the collection process, Swanson's statement said.
Midland and its publicly-traded parent corporation, Encore Capital Group, Inc., have paid more than $1.8 billion to obtain 33 million customer accounts with a face value of about $54.7 billion, or an average cost of about three cents on the dollar, according to the Attorney General's office based on company regulatory filings. Midland and Encore buy electronic portfolios containing billions of dollars of old, charged-off consumer debt from credit card companies, banks, telecommunications firms, and other creditors, the Attorney General's statement said.
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