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Earlier this month Wells Fargo sued UCR in federal district court in Florida over its unauthorized use of the bank’s name and trademark on the affidavits.
U.S. Bank issued a statement saying that it hasn’t sold any of the overdraft debt at issue in the case since March 2012.
“Selling charged-off debt has historically been a small portion of our collections efforts,” spokeswoman Teri Charest said in the statement. “While we collect the vast majority of delinquent debt internally, we do maintain relationships with a small number of agencies who collect on our behalf. Those agencies are required to meet very strict compliance, ethical and customer service standards.”
The suit is the state’s second against a debt buyer over sworn affidavits used to try to prove debts. In 2011 the AG’s office sued Midland Funding LLC over accusations its employees were robo-signing affidavits used in court. In a settlement last year, Midland agreed to pay the state $500,000 and clean up its practices. Midland is owned by debt-buying giant Encore Capital Group Inc. in San Diego.
Swanson said her office has other debt buyer investigations pending.
Jennifer Bjorhus • 612-673-4683