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Collector Escapes $350,000 ‘Zombie Debt’ Award Again (Correct)

June 8, 2022, 9:41 PMUpdated: June 9, 2022, 5:42 PM

The Seventh Circuit declined on Wednesday to reconsider a decision that vacated a $350,000 jury award against Midland Credit Management Inc. for attempting to collect “zombie debts,” although the court did so over the dissent of four judges.

The class action, which involves claims under the Fair Debt Collection Practices Act, presents a key question on the extent of Congress’s power to authorize private civil remedies for “intangible but concrete injuries,” Judge David F. Hamilton wrote, joined by Judges Ilana D. Rovner, Diane P. Wood, and Candace Jackson-Akiwumi, all of whom dissented in favor of a rehearing by the full ...