Legal Battle Against Zombie Debt Collectors

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On March 27, 2014, we filed a lawsuit, Leoncio Paz v. Midland Funding, in Fairfax County. Our complaint alleged violations of the Fair Debt Collection Practice Act (FDCPA) based on Midland’s direct falsehoods and false implications in its attempt to obtain a default judgment against Mr. Paz. Midland withdrew their collection attempt when we stepped up to represent Mr. Paz, but we sued them for damages based on their deceitful business practice.

Our goal is to make the exploitative zombie debt collection business model too expensive to be profitable, thus forcing the debt collection companies to abandon their practice of suing low-income people without the means to prove their case. “Zombie debt” refers to debt that third-party debt collection companies’ attempts to collect despite either it being barred by statute of limitations or the companies lack proof that they have a legal right to collect on it.

News Coverage
Taking on the Country’s Biggest Debt Buyer, Midland Funding (Washington Post, 5/9/14)