RECORD DISMISSAL OF 6,732 DEBT COLLECTION CASES BY MARYLAND STATE DISTRICT COURT CHIEF JUDGE

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"Telephone-Gate": Joan Pratt and Peter Angelos versus Stephanie Rawlings-Blake

The Law Offices of Peter G. Angelos is representing Baltimore Comptroller Joan M. Pratt without charge (pro bono) in her civil suit against Mayor Stephanie Rawlings-Blake and the City Council of Baltimore seeking to stop Baltimore City from moving forward with a controversial new telephone system because of a lack of competitive bidding.

[Joan M. Pratt, et al. vs. Mayor & City Council of Baltimore, Civil Case Number 24C12006018, Circuit Court for Baltimore City, Case filed 10/12/2012]

6732 Debt Collection Cases Dismissed

Chief Judge Ben C. Clyburn of the District Court of Maryland has dismissed 6,732 debt collection cases against Maryland residents within the past four months.

On July 10, 2012, Chief Judge Clyburn ordered the dismissal of 3,564 of the debt collection cases after a settlement agreement was entered with the debt collection agencies LVNV and Resurgent Capital Services.

As part of the agreement reached with the Maryland State Collection Agency Licensing Board, LVNV and Resurgent will pay $1 million to the state and agreed to the dismissal of cases pending in Maryland District Court. Also, $3.8 million in credit will be applied to the accounts of 6,246 consumers whose cases have been adjudicated or settled. The settlement came after claims that LVNV and Resurgent violated state and federal laws about licensure and submitting false or misleading claims or affidavits in court.

On October 10th, 2012, Chief Judge Clyburn dismissed 3,168 debt collection cases against Maryland residents.

Judge Clyburn's order follows a settlement and final order in a federal class action against Worldwide Asset Purchasing and its affiliates issued by U.S. District Court Judge Richard D. Bennett. In that case, it was alleged that Worldwide Asset Purchasing and its affiliates were not properly registered or licensed, misstated amounts owed and improperly stated Social Security numbers in state court filings, and filed collection lawsuits after the statute of limitations had expired.

Judge Clyburn dismissed the 6,732 cases with prejudice, which means they cannot be re-filed. The order also states that judgments in the cases are marked as "satisfied" and judgment liens are released.

LVNV, Resurgent Capital Services, and Worldwide Asset Purchasing are part of a new industry called "debt buying", that has clogged the dockets of small claims courts in Maryland and throughout the country, particularly during the current recession. Debt buyers specialize in buying debts that have been abandoned by the original creditors, usually credit card companies, for a tiny fraction of the amount owed. Debts may be sold to other debt buyers several times, and the documentation to prove the debt is owed sometimes is little more than the person’s name, last known address and Social Security number.

Defendants whose cases have been dismissed will receive written notification from the District Court of Maryland. To get more information, Maryland residents should contact the local District Court location where the debt collection case was filed. In addition to sending written notices to the people affected by this order, the District Court is directing that court records and the Judiciary Case Search public records website be updated to show the dismissals. The records should be updated within the next month.

[see, Winemiller, et al. v. Worldwide Asset Purchasing, et al, Civil Case No. 1:09-CV-02487-RDB, U.S. Dist. Court-Maryland; www.bizjournals.com/ 10-12-2012; www.courts.state.md.us/press/2012/pr20121011.html; www.courts.state.md.us/press/2012/pr.20120711.html]