- Associated Press - Friday, December 2, 2016

LINCOLN, Neb. (AP) - A Grand Island based debt collection company has agreed to pay a $198,000 settlement in a class-action lawsuit that accused the company of violating federal law.

The Lincoln Journal Star reports (https://bit.ly/2fTf2Dy ) that the settlement ends a legal fight Laura Powers and Nichole and Jason Palmer brought against Credit Management Services in 2011.

Federal courts have previously ruled that debt collectors can’t collect attorney’s fees or interest from people without first receiving judgment from a court in a debt case. Court documents say Credit Management Services tried to do so when the company sought payment for medical bills.

Under the settlement, 11,552 claimants will receive a proportional share of the $198,000 payout. Credit Management Services didn’t admit liability.

___

Information from: Lincoln Journal Star, https://www.journalstar.com

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide