December 15, 2014:
According to Massachusetts law, collection agencies and debt collectors cannot collect debts or file lawsuits against consumers and debtors in Massachusetts courts (including small claims court), unless registered with the Commissioner of Banks.
Minnesota-based debt collector Jefferson Capital Systems, LLC must now defend a lawsuit for failing to register with the Commissioner of Banks in violation of Massachusetts law. According to the lawsuit pending in the United States District Court in Boston, Jefferson Capital Systems is a debt collector that purchases consumer debts (such as credit card debts, personal loans, mortgage loans, utility bills, medical bills, and other receivables) and employs aggressive tactics, including filing lawsuits, to collect these debts. In this lawsuit, court papers and affidavits uncovered the following facts: (1) the debt purchased by Jefferson Capital Systems was only 4.2% of the original amount of the credit card debt alleged to be owed; (2) in the four year period spanning September 29, 2010 and September 29, 2014, Jefferson Capital Systems filed 2,100 lawsuits in Massachusetts courts; and (3) during this same time period, Jefferson Capital Systems attempted to collect $5,886,105.00 in consumer debts in Massachusetts.
According to the records maintained at Jefferson Capital in the ordinary course of business, there were 2100 consumer debt collection lawsuits filed in Massachusetts on behalf of Jefferson Capital from September 29, 2010 to September 29, 2014. The aggregate amount sought in these cases was $5,886,105, exclusive of costs, attorney’s fees and interest.
-Mark Zellmann, Dir. of Portfolio Valuations
Jefferson Capital Systems, LLC
The lawsuit filed by the Law Offices of Joshua N. Garick, P.C. and consumer advocate Preston Leonard seeks to recoup over $5.8 million on behalf of Massachusetts debtors. You may be eligible to receive financial compensation if you have been sued by Jefferson Capital Systems, LLC. Similar lawsuits have also been filed against other debt collectors and collection agencies, including:
- Jefferson Capital Systems, LLC
- LNVN Funding, LLC
- Asset Acceptance, LLC
- Midland Funding, LLC
WE CAN HELP!
If you are a Massachusetts resident and have received notice from a debt collector or if you have been sued by a debt collector in a Massachusetts court, including small claims court, you can fight back by demanding financial compensation if the debt collector is not licensed. Please CONTACT US and we will be glad to assess whether you are eligible for financial compensation from over-aggressive and unlawful debt collectors who have purchased your debt for mere pennies on the dollar.