Unifund Agrees to Deal in Neb. Collection Case

More than 2,800 Nebraskans will share in a $148,625 settlement that a debt-collection firm agreed to pay because of questions about its practices.

The class-action settlement has already gained preliminary approval from a federal judge. If the deal gains final approval in October, Cincinnati-based Unifund will compensate all the individuals who qualify.

The lawsuit was filed in 2008 by Omaha lawyers Pamela Car and Bill Reinbrecht. They said Unifund filed lawsuits in some cases where the time limit on lawsuits had expired, and Unifund tried to collect attorney fees in some cases where that's not allowed.

"We believe we got a good result for the class members," Reinbrecht said.

Unifund officials did not immediately respond to a request for comment on Thursday.

The settlement agreement calls for members of the class to receive either a small payment or a reduction in the amount they owe Unifund.

People who have paid off the debt Unifund was trying to collect will receive a payment of roughly $50-$65, depending on how many people qualify.

People who still owe money will have their debt reduced by as much as $125.

The exact amount debtors receive will be determined by their individual circumstances and the terms of the settlement.

The two lead plaintiffs in the case, Christina Williamson and Galin Brown, will receive additional compensation because of their roles. They'll both get roughly $5,500.

And as part of the settlement, the plaintiff's attorneys will be paid $66,000, but that settlement is not part of the $148,000 estimated value.

A hearing on final approval of the settlement agreement is scheduled for Oct. 9. If the deal is approved then, Reinbrecht said the payments should begin being issued within a few weeks of the judge's ruling.

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