DURHAM, N.C., Aug. 22, 2019 /PRNewswire/ -- Litigation attorneys Gary Jackson and Christopher Bagley, along with Ed Maginnis and Karl Gwaltney of Maginnis Law PLLC in Raleigh, recently settled a class action against a debt collection agency for improper collection practices for $1.2 million.*
Under the Fair Debt Collection Practices Act (FDCPA) and the North Carolina Collection Agency Act (NCCAA), debt collectors may not attempt to collect debts that have been discharged – eliminated – through bankruptcy. The defendant debt collection agency in the lawsuit contacted the plaintiff to try to seek collection of a medical debt, even though that debt had already been discharged through Chapter 7 bankruptcy.
"A Chapter 7 discharge is supposed to be a fresh start for a consumer whose debts have overwhelmed their ability to pay. More than 400,000 consumer debtors file for Chapter 7 relief each year, and those bankruptcies typically follow sudden catastrophes like injuries or illnesses that require medical treatment," Jackson said.
While investigating their client's claims, the attorneys found 12,000 more potential victims who were subject to potentially unlawful collection attempts between 2012 and 2019. The attorneys worked to identify a list of individuals contacted by the agency who are eligible to recover in the $1.2 million settlement (NC Lawyers Weekly).
The Law Offices of James Scott Farrin continues to investigate potential class actions against other debt collectors whose practices may be unlawful under the FDCPA and NCCAA.
*Each case is unique and must be evaluated on its own merits. Prior results do not guarantee a similar outcome.
About the Law Offices of James Scott Farrin
The Law Offices of James Scott Farrin is headquartered in Durham's American Tobacco Historic District, with 14 additional offices: Asheville, Charlotte, Fayetteville, Greensboro, Greenville, Goldsboro, Henderson, New Bern, Raleigh, Roanoke Rapids, Rocky Mount, Sanford, Wilson, and Winston-Salem. Their nearly 50 attorneys handle: Personal Injury, Workers' Compensation, Social Security Disability, Eminent Domain, Whistleblower, Civil Rights, Mass Torts, Class Actions, and Products Liability. Nine attorneys are NC Board Certified Specialists in Workers' Compensation Law and one is an NC Board Certified Specialist in Social Security Disability Law.
SOURCE Law Offices of James Scott Farrin