Class Certification Rejected in Alleged FDCPA/RICO Suit Against Sherman Financial Group

A federal judge in Indianapolis has ruled that a lawsuit alleging violations of the Fair Debt Collection Practices Act (FDCPA) and the United States Racketeer Influence and Corrupt Organization Act (“RICO”) against Sherman Financial Group, one of the country’s largest debt buyers, cannot proceed as a class action because circumstances vary too much among the class members.

In a decision filed on Friday, January 22, 2016 U.S. District Judge Tanya Pratt said individual proof would be needed for each class member to support their claims that Sherman subsidiaries did not own consumers’ debt when they tried to collect it.

The action was originally filed on November 9, 2012. (Cox, et al v. Sherman Capital LLC, et al. U.S. District Court, Southern District of Indiana, 1:12-cv-01654-TWP-MJD)

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