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Lawsuit: Iowa court debt collected illegally, with millions routed to private firm


Iowa Capital Dispatch: A federal lawsuit alleges that the debt-collection company hired by the Iowa Judicial Branch has been paid millions of dollars in fees while violating state and federal laws through deceptive, high-pressure tactics. The lawsuit also alleges that Iowans in rural areas of the state are at a financial disadvantage when it comes to fees for court-appointed attorneys and debt collection. Iowa Legal Aid, along with a California public-interest group called Public Justice and the Terrell Marshall Law Group of Seattle, is suing the law firm of Linebarger, Googan, Blair & Sampson, which is one of the nation’s largest collectors of debt owed to governmental entities, on behalf of two Iowans.

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