Lawsuit against Nebraska debt collector settled for $198,000

[TexasTowelie]

LINCOLN, Neb. (AP) — A Grand Island based debt collection company has agreed to pay a $198,000 settlement in a class-action lawsuit that accused the company of violating federal law.

The Lincoln Journal Star reports that the settlement ends a legal fight Laura Powers and Nichole and Jason Palmer brought against Credit Management Services in 2011.

Federal courts have previously ruled that debt collectors can't collect attorney's fees or interest from people without first receiving judgment from a court in a debt case. Court documents say Credit Management Services tried to do so when the company sought payment for medical bills.

Under the settlement, 11,552 claimants will receive a proportional share of the $198,000 payout. Credit Management Services didn't admit liability.

Read more: http://www.starherald.com/news/regional_statewide/lawsuit-against-nebraska-debt-collector-settled-for/article_3b6693d2-b8de-11e6-a76b-d3be0709cbf9.html

[Fortinbras Armstrong]

1. By my calculations,

That comes out to $17.14 per claimant. Less attorney's fees?

[TexasTowelie]

2. The article did say it was proportional payments so the total will vary

based upon their medical bills. After subtracting the legal fees a few people might get enough to buy groceries for a week if they don't eat extravagantly.