Cy Pres Award Goes to North Carolina Justice Center

woman sculpture holding scales

The North Carolina Justice Center will receive $62,000 in “cy pres” funds that remain from a recent class action settlement. Ed Maginnis and Karl Gwaltney from Maginnis Howard in Raleigh, with help from attorneys from James Scott Farrin, represented consumer debtors in a class action alleging that the defendant violated the Fair Debt Collection Practices Act (FDCPA) and the North Carolina Collection Agency Act (NCCAA) by attempting to collect debts that had been eliminated through bankruptcy.

While investigating their client’s claims, the attorneys found 12,000 more potential victims who were subject to potentially unlawful collection attempts between 2012 and 2019. The attorneys worked to identify a list of individuals contacted by the agency who are eligible for damages. A federal court approved the total settlement of $1.2 million on May 29, 2019. After the attorneys supervised two rounds of distribution to Class members, about $62,000 remained as a result of Class members not cashing the checks sent to them. The results of the cy pres case can be found here.

Many collection agencies have insufficient procedures to protect against contacting consumers after a bankruptcy discharge. Maginnis Howard’s consumer protection attorneys help businesses and individuals navigate the complexities of debt collection law across North Carolina. You can learn more about our lawyers here, and when you’re ready contact us at (919) 526-0450, by email at info@maginnishoward.com, or through our contact page.