Class Action Against Debt Buyer LVNV Funding May Allow Attack on Judgments, Reports Article
Massachusetts Lawyers Weekly has reported on a case brought against LVNV Funding by Attorney Josef Culik of Culik Law with co-counsel Kenneth Quat and the National Consumer Law Center.
The article, titled Collateral Attack on Debt Buyer Allowed to Proceed (subscription required), explains that the debt collector and debt buyer LVNV Funding has been sued for alleged unlicensed debt collection and violation of the Massachusetts Consumer Protection Act, called Chapter 93A.
The class-action lawsuit, filed the Suffolk Superior Court Business Litigation Session, asks the court to void all court judgments obtain by LVNV Funding against Massachusetts residents in debt-collection cases over the past four years.
LVNV filed a motion to dismiss arguing that the court had no authority to invalidate judgments issued by other courts.
The judge disagreed, writing that “if LVNV had no authority to bring the underlying suits against the debtor in the first place, then any judgment it obtained was a ‘nullity’ and thus could be collaterally attacked.” You can read the full decision here.
Attorneys are speculating that this issue may ultimately be decided by the Massachusetts Supreme Judicial Court.