The settlement resolves claims that Mary Jane M. Elliott, P.C., a Michigan debt collection law firm, and debt buyers Midland Funding LLC and LVNV Funding LLC illegally collected judgment interest exceeding Michigan's statutory rate on consumer debt judgments from April 2011 through March 2024. The case covered thousands of Michigan consumers who had money judgments entered against them for personal debts not based on written instruments, where the defendants collected amounts with interest rates above the 2.66% annual rate allowed under Michigan Compiled Laws Section 600.6013(8).
Judge Maloney found the settlement met all requirements under Federal Rule 23(e)(2), writing that 'the Settlement Agreement is, in all respects, fair, reasonable, and adequate to the Settlement Class.' The court noted the agreement was 'negotiated at arm's length and with the assistance of mediator Lee T. Silver by experienced counsel who were fully informed of the facts and circumstances of this litigation and of the strengths and weaknesses of the case.'
The court emphasized the overwhelming acceptance of the settlement terms, stating that 'no Class Member elected to be excluded from the Class and no Class Member submitted a written objection or appeared to object at the Fairness Hearing.' The notice campaign achieved 'over 90% of the class' coverage through multiple mailings and a settlement website maintained by the administrator.
The litigation began in 2017 when named plaintiffs Daniel VanderKodde, Anita Beckley, and Ruby Robinson filed suit alleging the defendants systematically overcharged consumers on judgment interest. The case was divided into two subclasses: one covering judgments in favor of Midland Funding and another covering LVNV Funding judgments. Judge Maloney appointed VanderKodde as representative of the LVNV class and Beckley as representative of the Midland class.
The defendants had argued their interest calculations were proper under Michigan law, but the court found the plaintiffs' claims were 'typical of the claims of the Settlement Class' and that common issues of whether defendants 'violated federal and state debt collection laws by adding interest to judgments' predominated over individual questions. The court noted the complexity and expense of continued litigation weighed in favor of settlement approval.
Judge Maloney certified the settlement classes under Rule 23(a) and (b)(3), finding the members were 'so numerous that their joinder in this action would be impracticable' and that class treatment was 'superior to other available methods for the fair and efficient adjudication of this action.' The court excluded class members whose accounts were discharged in bankruptcy or who were deceased as of preliminary approval.
The court appointed Phillip C. Rogers and Theodore J. Westbrook as class counsel, finding they were 'well-qualified and experienced in class action litigation.' Judge Maloney retained jurisdiction over the settlement's 'administration, interpretation, implementation, and enforcement' and will rule separately on attorneys' fees. The court permanently enjoined class members from pursuing related claims against the released parties.
The settlement comes as debt collection practices face increased scrutiny under federal and state consumer protection laws, with courts requiring debt collectors to comply strictly with statutory interest rate limits on consumer judgments.