Lawsuit says St. Cloud firm 'robo-signed' affidavits

  • Article by: PATRICK KENNEDY , Star Tribune
  • Updated: May 19, 2011 - 9:51 PM

The AG's office filed a lawsuit in Hennepin County against Midland Funding.

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In March, Minnesota Attorney General Lori Swanson announced a legal filing against debt buyer Midland Funding for filing false and deceptive robo-signed affidavits. On the right are three victims of the debt buyer, Barbara Thies of Eagan, Daniel Fischer of Brooklyn Park, Michael Helmer of Shorewood.

Photo: Glen Stubbe, Star Tribune

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The Minnesota attorney general's office filed a complaint Thursday in Hennepin County District Court against the debt-buying company Midland Funding LLC. The lawsuit alleges that the St. Cloud company created false and unreliable mass-produced, "robo-signed" affidavits as supposed proof of consumer debts in lawsuits against individual citizens.

Minnesota Attorney General Lori Swanson was allowed to proceed with the lawsuit after U.S. District Judge David Katz in Ohio issued an order saying that a tentative class action settlement in that jurisdiction did not prevent Minnesota's legal action.

Swanson's suit alleges "Midland aggressively filed thousands of lawsuits against individual citizens for collection of old, purchased debt, often supporting those lawsuits with 'robo-signed' affidavits generated at its St. Cloud Offices."

Midland Funding is a subsidiary of San Diego-based Encore Capital Group Inc., a publicly traded company.

Patrick Kennedy • 612-673-7926

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