Culik Law Sues Debt Buyers LVNV Funding and Midland Funding in Massachusetts Class Actions

culiklawdebtcasesTwo of the largest debt buyers operating in Massachusetts, LVNV Funding and Midland Funding, are defendants in class-action lawsuits filed by Culik Law and co-counsel in the Business Litigation Section of Suffolk Superior Court.

The lawsuits allege that LVNV and Midland are engaged in unlicensed debt collection. Massachusetts requires that debt collectors must obtain licenses from the state in order to operate. LVNV and Midland’s actions — suing consumers for bad debts, credit reporting, and collecting on judgments — constitute debt collection, and thus they must be obtain licenses, alleges the lawsuit.

LVNV and Midland have previously argued that their operations are “passive” and thus they are not required to obtain licenses. But in court filings in federal court, Midland admits to having collected over $18 million dollars from over 30,000 Massachusetts consumers in the course of just one year.

LVNV filed a motion to dismiss the lawsuit, but a Superior Court judge denied the motion and allowed the lawsuit to proceed. Litigation is ongoing in both cases.



CULIK LAW PC is a consumer protection law firm helping individuals Champion Your Rights. Based in Boston, Massachusetts and Charlotte, North Carolina, we help clients with debt defense, mortgage litigation, foreclosure defense, consumer protection, and employment related matters. We have gone against the largest banks and debt collectors on our clients' behalf, saved hundreds of homes from foreclosure, and have settled thousands of debts for significantly less than owed or had the debt dismissed altogether.