The collection industry continues to make headlines for the wrong reasons.
Recently Midland Funding LLC, a subsidiary of Encore Capital Group, Inc., was accused by Minnesota Attorney General Lori Swanson of defrauding consumers by issuing “robo-signed” affidavits to the courts with the intent to prove that consumers owed debts.
Swanson’s office alleged Midland created “phony, slopping and fraudulent documents in Minnesota courts” including unreliable mass-produced affidavits with the goal of obtaining judgments or extracting payments from consumers. According to Swanson’s office, a large percentage lacked legal representation and some had no knowledge of the alleged debt.
At the time of accusation, Encore could not be reached for comment. Whether this instance proves to be true or not, the issue is that this industry is wrought with fraud and in need of change. The CFPB (Consumer Financial Protection Bureau) should go a long way towards making these needed changes a reality. For more information on the CFPB go to their website at www.consumerfinance.gov.
According to Wikipedia, “Robo-signing is a term used by consumer advocates to describe the robotic process of the mass production of false and forged execution of mortgage assignments, satisfactions, affidavits and other legal documents related to mortgage foreclosures and legal matters being created by persons without knowledge of the facts being attested to. It also includes accusations of notary fraud wherein the notaries pre and/or post notarize the affidavits and signatures of so-called robo-signers.”