Debt Settlement

In the state of Nebraska, people needing debt relief have some consolation in a recent court ruling. Unifund has been ordered to pay $150,000 in a class-action lawsuit brought by two plaintiffs on behalf of people being pursued by Unifund over debt collection. Unifund was also pursuing legal fees from these people whose debt collection was past the four year statute of limitations in Nebraska.

While the majority of people involved will only receive between $55.00 and $125.00 reductions in the amount of the debt they owe, it is a victory for the few everyday persons in need of debt relief against the larger corporate entity.

The two plaintiffs in the case only received around Five thousand dollars each, but the attorneys involved were awarded approximately $66,000 for their extensive work on the people’s behalf.

Unifund was pursuing debt collection on behalf of loans that they purchased from other entitities. The mistake they made was pursuing these cases in court after the statute of limitations had run and also trying to get legal fees from these small-debt cases over and above the amount they owed. While the awards were small, it is a landmark case in that it stakes a claim for debt relief for people being pursued unfairly.