LTD Financial Services Hit with FDCPA Lawsuit in Response to Previous Dismissal

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LTD Financial Services, LP is on the receiving end of a proposed class action that was filed in response to a previous lawsuit’s dismissal. The plaintiffs in the case say they filed suit against the defendant and several others in May 2017 over allegations that the companies violated the Fair Debt Collection Practices Act (FDCPA). The claims against LTD Financial, however, were reportedly dismissed without prejudice because, according to the plaintiffs, “the Complaint did not contain any reference to the actual harm suffered by Plaintiffs as a result of the alleged violations in the Complaint.” LTD Financial supposedly refused to go to arbitration with the plaintiffs - unlike the other named defendants who were ordered by the court to arbitrate - thereby prompting this lawsuit.

The suit claims that the plaintiffs took out loans with NHCash.com, LLC, a party named as a defendant in the original lawsuit, and were charged up to 36 percent interest – an amount far exceeding Virginia’s 12 percent interest cap, according to the complaint. The case argues that, despite the alleged illegality of the loans’ interest rates, the defendant attempted to collect money from the plaintiffs, subjecting them to “concrete and particularized harms.”