Maryland Judge Says Two Companies Cannot Pursue Debt Collection

Mary­land Chief Dis­trict Court Judge Ben C. Clyburn issued a “stay” on 3,878 debt col­lec­tion cases brought by two debt col­lec­tion com­pa­nies that have filed more than 27,000 cases but have had their busi­ness licenses sus­pended, Baltimore’s City Paper reported on November 2, 2011. According to the Paper, the Mary­land State Col­lec­tion Agency Licens­ing Board issued a Sum­mary Order to Cease and Desist and Sum­mary Sus­pen­sion against LVNV Fund­ing, LLC and Resur­gent Cap­i­tal Services on October 28.

Clyburn, the chief judge of Maryland’s District Court, said in a July 2011 Baltimore Sun article that  “some debt-buying companies have treated the courts as an extension of their collections offices, counting on the fact that unsophisticated consumers won’t stand up for themselves and judges — hearing no defense — will sign off on claims without realizing they’re deficient.” According to the Paper, he dismissed 314 additional cases in September.

Some consumers have been sued twice on the same debt by dif­fer­ent debt buy­ers while other have been sued on debts dis­charged in bankruptcy, debts they had already paid off or debts incurred by other peo­ple with sim­i­lar names.

If you are among the consumers avoiding the phone so you do not have to speak with a collection agency, our Maryland bankruptcy lawyer can assist you in putting together a thorough list of creditors before filing so you can reestablish credit, eliminate bills and stop foreclosure. Our next blog post will discuss what creditors are and are not allowed to do when contacting you.

Law Firm of Kevin D. Judd – Maryland bankruptcy attorney