In a prior post we explored the class action lawsuit brought against public debt collector Encore Capital. If you remember, U.S. District Judge David A. Katz in Toledo, Ohio, ruled in 2009 that Encore employees used “false and misleading” affidavits to collect credit-card debts. As part of the case, one employee testified in a deposition that he signed up to 400 affidavits a day, few of which were reviewed for accuracy. Today I would like to show you how this is more good news for us.
Without going into the details, attorney generals in 38 states have decided to fight the proposed class-action settlement claiming that the ruling could potentially help debt-collection companies evade enforcement actions by state officials.
Why…it’s not hard to figure out once you take a look at the proposed ruling: The 1.4 million people involved in the class action suit would agree to drop all claims against Encore in exchange for 5.7 million dollars. In other words, plaintiffs would only receive $4.07 each ( $5,700,000 / 1,400,000).
Does that sound like much of a deterrent for someone who’s business model is based on lawsuits? (In 2009 Encore collected $232.7 million from 334,000 lawsuits. In 2010, they collected $266.8 million from 425,000 lawsuits.)
We don’t think so and neither do the attorney generals who stated, “Encore could use the settlement as a precedent throughout the U.S., arguing that other allegations of flawed affidavits should be thrown out because of the Ohio deal.”
This action taken by the attorneys general is important because it shows that going forward those who choose a “litigation model” may have a very hard time. Business models that have taken advantage of a lax regulatory system will cease to work as regulations make it tougher for them to profit. As these companies drop out of the mix, Ropay Asset Investors will flourish due to our plan that takes advantage of the coming regulatory changes!
Do Good and Make Money!