The North Carolina Justice Center will receive $62,000 in “cy pres” funds that remain from a recent class action settlement.
Attorneys Ed Maginnis and Karl Gwaltney alongside attorneys at James Scott Farrin successfully represented a group of consumers who faced unfair debt collection practices. The class action alleged that the defendant violated the Fair Debt Collection Practices Act (FDCPA) and the North Carolina Collection Agency Act (NCCAA) by attempting to collect debts that had been eliminated through bankruptcy.
While investigating their client’s claims, the attorneys found 12,000 more potential victims of unlawful collection attempts from 2012-2019. The attorneys worked to identify a list of individuals contacted by the agency who are eligible for damages. A federal court approved the total settlement of $1.2 million on May 29, 2019. After two rounds of distribution to Class members, about $62,000 remained because Class members did not cash their settlement checks. You can find more information about the cy pres case here.
Many collection agencies have insufficient procedures to protect against contacting consumers after a bankruptcy discharge. Maginnis Howard’s consumer protection attorneys help businesses and individuals navigate the complexities of debt collection law across North Carolina. You can contact us at (919) 526-0450 or through our contact page.
