In August 2014, Defendant Portfolio Recovery Associates, LLC commenced an action against Plaintiff, Mr. Russell Klippel, in Johnstown City Court in New York. The court papers filed by Portfolio Recovery Associates alleged that venue in the Johnstown City Court was proper because Mr. Klippel resided in the City of Johnstown. Plaintiff alleges that Portfolio Recovery Associates, LLC knew at the time it filed the suit that Mr. Klippel did not live in the City of Johnstown. Plaintiff alleges that the assertion regarding Mr. Klippel’s residence as the basis for venue was misleading and deceptive and that the collection suit against Mr. Klippel was filed in the wrong court under state and federal law.
Plaintiff filed a class action lawsuit in the United States District Court for the Northern District of New York on behalf of himself and all others similarly situated. He alleged in part that the Defendant violated the federal Fair Debt Collection Practices Act (“FDCPA”), a law that forbids misleading and abusive debt collection practices. Plaintiff claimed the Defendant violated the FDCPA when it filed lawsuits against him and other consumers in similar circumstances by using a summons stating that the consumer resided within a particular city or town and therefore could be properly sued in that city or town’s court, even though the Defendant allegedly had reason to know that the consumers it was suing did not reside there. Plaintiff also named as a defendant Catherine Hedgeman, Esq., an attorney who works for the Defendant who signed the summons and complaint against Mr. Klippel and many other consumers in collection lawsuits commenced by Portfolio Recovery Associates, LLC in state courts within New York’s Northern District.
The parties have reached a class action settlement that provides for monetary relief to 205 New York consumers living in New York’s Northern District who meet the settlement class definition. The proposed class action settlement agreement provides that settlement class members will receive $250 each. The Court has granted preliminary approval to the settlement agreement, and there will be a Fairness Hearing on September 6, 2017 at 10 a.m.
As set forth in more detail in the Class Notice (PDF: 63.0 kB), settlement class members need not need to do anything to be included in the Settlement. Inclusion is automatic and they will be included, and receive $250, unless they specifically request to opt out. The details regarding who is a class member, the Fairness Hearing, the rights of class members (including the right to opt out of the settlement or object to it), compensation to Class Counsel, deadlines, other material terms of settlement and more are set forth in the Class Notice (PDF: 63.0 kB). As set forth more fully in the Class Notice (PDF: 63.0 kB), Defendant denies that it violated any law or committed any wrongdoing.
If the Court grants final approval to the proposed settlement, the Court’s Order will be posted on this website.
You can contact us in writing at the following address:
Klippel v. Portfolio
c/o Heffler Claims Group
P.O. Box 60042
Philadelphia, PA 19102-0042
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