Make us your home page

LM Funding America fends off one legal battle

TAMPA — Tampa's beleaguered LM Funding America has staved off one legal threat even as it still faces another.

A federal judge in Tampa last week denied a request to certify a class action lawsuit against LM Funding, which buys the rights filed to collect unpaid homeowner associations fees. The ruling by Judge Charlene Edwards Honeywell came in a suit alleging that LM Funding and a related company, Business Law Group, tried to collect more fees than they were owed.

Although the case will continue, the plaintiff's failure to win class-action certification "is a huge win'' said R. Dean Akers, LM Funding's chief operating officer.

For Previous Coverage or related coverage:

Previous coverage: Troubled Tampa-based LM Funding faces class action lawsuit

LM Funding pays the association an amount equal to an owner's delinquent dues, then tries to collect directly from the owner or first-mortgage holder if the owner defaults on the loan. State law limits the amount that can be collected from first-mortgage holders to 12 months or 1 percent of the mortgage, whichever is smaller.

Wilmington Savings Fund Society, which acquired the distressed loans of some LM Funding clients, sued after the company allegedly tried to collect in excess of what state law allows. Wilmington argued that the suit should be certified as a class action including other mortgage holders, but the judge ruled that the issues were better handled on an individual basis.

LM Funding is still battling a South Florida class-action suit accusing it of deceptive trade practices and charging illegally high interest rates. Since going public in 2015, the company has cut staff, slashed salaries and seen its stock plunge from $10 a share to $4.25 as of this afternoon.

Contact Susan Taylor Martin at [email protected] or (727) 893-8642. Follow @susanskate

LM Funding America fends off one legal battle 02/27/17 [Last modified: Monday, February 27, 2017 2:45pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Black entrepreneur says city stiffing him on project after he endorsed Rick Baker


    ST. PETERSBURG — A prominent African-American resident says his endorsement of mayoral candidate Rick Baker has led city officials to freeze him out of a major construction project along the historic "Deuces" stretch of 22nd Street S.

  2. Sen. Nelson urges FEMA to examine high number of denied flood claims


    Sen. Bill Nelson urged FEMA on Tuesday to ensure fairness, proper oversight and transparency in processing Hurricane Irma aid following a report by the Palm Beach Post that 90 percent of Irma claims under the National Flood Insurance Program had been denied.

    Sen. Bill Nelson is calling for FEMA to ensure the flood claims process post-Hurricane Irma is fair and ethical following reports that 90 percent of claims under the National Flood Insurance Program were denied. | [Times file photo]
  3. Amazon expands in Tampa with Pop-Up shop in International Plaza


    TAMPA — A new retailer known largely for its online presence has popped up at International Plaza and Bay Street.

    Shoppers walk past the new Amazon kiosk Tuesday at the International Plaza in Tampa. The kiosk, which opened last month, offers shoppers an opportunity to touch and play with some of the products that Amazon offers.
[CHRIS URSO   |   Times]

  4. Study: Florida has fourth-most competitive tax code


    Florida's tax code is the fourth most competitive in the country, according to a study released Tuesday by nonprofit group Tax Foundation.

    Florida has the fourth-most competitive tax code, a study by the Tax Foundation said. Pictured is  Riley Holmes, III, H&R Block tax specialist, helping a client with their tax return in April. | [SCOTT KEELER, Times]
  5. Trigaux: On new Forbes 400 list of U.S. billionaires, 35 now call Florida their home

    Personal Finance

    The latest Forbes 400 richest people in America was unveiled Tuesday, with 35 billionaires on that list calling Florida home. That's actually down from 40 Florida billionaires listed last year when a full 10 percent listed declared they were Floridians by residence.

    Edward DeBartolo, Jr., shopping center developer and  former San Francisco 49ers Owner, posed with his bronze bust last year during the NFL Hall of Fame Enshrinement Ceremony in Canton, Ohio. DeBartolo remains the wealthiest person in Tampa Bay according to the Forbes 400 list released Tuesday. 
[Photo by Joe Robbins/Getty Images]