Judge Rejects Proposed Settlement in Condo Collection Lawsuit

By Joe Kollin, Sun-Sentinel

Nearly 1,300 owners who received letters threatening foreclosure of their condos and homes must wait two more weeks to find out whether they will receive a $30 check from the Lauderhill law firm accused of sending them the warnings in violation of federal and state fair debt collection laws.

U.S. District Judge William P. Dimitrouleas in Fort Lauderdale on Thursday was scheduled to approve a settlement in a class-action lawsuit against the firm, Katzman & Korr, that included paying each owner $30. But the judge said he couldn’t accept one provision of the proposed settlement, a new letter that the firm would use in future collections to replace the threatening one that instigated the lawsuit.

Dimitrouleas said he couldn’t approve the letter because he doesn’t have the authority to make it binding in any future debt collection cases.

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