Who is a Class Member
You are included in the Global Credit & Collection IRS Letter Class Action Settlement “if Global Credit & Collection Corporation sent you a collection letter that made representations about reporting a settlement to the IRS.”
There are approximately 6,250 Settlement Class Members.
If you don’t qualify for this settlement, check out our database of other class action settlementsyou may be eligible for.
- $4.50 (estimated)
The amount each of these Class Members gets will be based on how many Class Members submit Claim Forms.
If all 6,250 class members return a claim form, which is unlikely, and decide to remain in the class, you will receive approximately $4.50. If 10% of the class members return a claim form, you will receive approximately $45.00. If only 1% of the class members return a claim form, you will receive approximately $450. No class member is eligible to receive more than one check.
Proof of Purchase
Note: The claim form is located at the bottom of the Class Notice.
Global Credit & Collection IRS Letter Settlement Notes
- Leon Lopez v. Global Credit and Collection Corp, et al.
- Case No. 17-cv-427
- Pending in the U.S. District Court for the Northern District of Illinois, Eastern Division.
Plaintiff Leon Lopez brought this class action lawsuit against Global Credit and Collection Corporation and Galaxy Portfolios LLC alleging violations of the Fair Debt Collection Practices Act- FDCPA. Specifically the complaint states that Global Credit and Collection unlawfully sent debt collection letters that made false representations about reporting forgiveness of the debt to the IRS.
According to the lawsuit, Global Credit and Collection sent Lopez a debt collection letter that said, “You currently owe: $14,516.47,” and offered to settle the account for roughly $10,000. The letter added that “forgiveness of $600.00 or more may be reported to the IRS on a 1099C Form.” However, Lopez did not owe this debt—they sent the letter to the wrong Leon Lopez. Nine months earlier, a California court determined that Lopez was not the debtor.
However, Global Credit and Collection argued that argue that since Lopez knew he was not the debtor, the false statement in the letter (“You currently owe . . .”), and the implication that they could collect the debt from him, did not injure him and therefore there was no basis for Lopez’s lawsuit.
The court ended up denying Global Credit and Collection’s motion to dismiss. Following the court’s ruling, Global Credit and Collection agreed to enter into a settlement to avoid the cost and risk of further litigation.
Class members who wish to exclude themselves or object to the terms of the Global Credit & Collection IRS Letter Settlement must do so by December 17, 2018. Class members who wish to submit a claim must do so by December 17, 2018.
- 12/17/18: Claim Form Deadline
- 12/17/18: Objection or Exclusion Deadline
- 1/19/19: Final Hearing at 10:00 am CT* (class members do not need to attend this hearing in order to receive a slice of the settlement pie).
*Settlement Class Members who wish to speak at the hearing should check with Class Counsel at 312-626-3585 or at edcombs.com to confirm that the date or time of the Hearing has not been changed.
- Mail: Cassandra P. Miller (32498) Edelman, Combs, Latturner & Goodwin, LLC 20 S. Clark St., Suite 1500 Chicago, IL 60603
- Phone: 1-312-917-4504
- Email: [email protected]