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$475,000 Settlement Where Tenants Were Assessed Eviction Related Fees

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$475,000 Settlement Where Tenants Were Assessed Eviction Related Fees


A North Carolina Superior Court Judge has approved a settlement of $475,000 for claims under debt collection statues filed on behalf of tenants of Glenwood Raleigh Apartments and Sterling Glenwood Apartments.

The class action, initially filed in Wake County Superior Court on June 30th, 2017, alleged that the defendants violated the Residential Rental Agreements Act, N.C.G.S. § 42-46 by charging and collecting various fees in connection with filing eviction actions.

The Plaintiff, Jordon Hargrove, was represented by attorneys Edward Maginnis and Karl S. Gwaltney with Maginnis Law, PLLC along with co-counsel at Whitfield Bryson, LLP.

The eviction-related fees in question included a complaint-filing fee, sheriff service fee, and an attorneys’ fee that the Plaintiff contended were prohibited by North Carolina law. The defendant strongly disagreed with Plaintiff’s interpretation and contended throughout the litigation that it was entitled to assess and collect the eviction fees.

The Plaintiff also alleged that the charging of the eviction-related fees violated the North Carolina Debt Collection Act, N.C.G.S. § 75-50 et seq. which prohibits debt collectors from making unlawful threats or misrepresenting amounts due.

Recognizing that the payment of hundreds of dollars of unexpected fees can result in tenants falling behind on their rent, attorneys for the Plaintiff negotiated the release of $425,000 in payments and other amounts owed by tenants of Glenwood Raleigh Apartments and Sterling Glenwood Apartments. This has resulted in tenants receiving  more than $350.00 per violation of the North Carolina Debt Collection Act.

Similarly, tenants who were evicted from Glenwood Raleigh Apartments and Sterling Glenwood Apartments could request a “set-aside and dismissal.” This set-aside and dismissal allowed class members to have eviction judgments removed from their rental record. This is an important component of the settlement because tenants are oftentimes excluded from renting apartments if they have even a single prior eviction judgment.

If you believe that you have been the victim of unlawful debt collection attempts by a debt collector or collection agency, we would like to speak with you. Feel free to give us a call at 919.526.0450. or email us at info@maginnislaw.com for a confidential and free case evaluation.

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