Midland Funding and LVNV Funding are major debt buyers that purchase charged-off consumer accounts and then pursue collections, often through lawsuits that can end in court judgments. Once a judgment is entered, interest may continue to accrue, but the rate that can be added is typically controlled by state law and the specific terms allowed by the court judgment. The settlement described stems from allegations that, after judgments were obtained, excessive post-judgment interest was added—potentially inflating balances beyond what borrowers legally owed and making it harder to pay off or resolve the debt. The lawsuit was filed to challenge these allegedly unlawful interest practices and to recover money for affected consumers, culminating in a reported $40 million settlement with a claims deadline of 3/9/26 and proof required. Its significance is that it targets not just the validity of the underlying debts, but the accuracy and legality of amounts added after the court process—an area where consumers often have limited visibility yet face serious consequences like bank garnishment or credit impacts. More broadly, it fits within a larger pattern of class actions and enforcement actions involving debt-collection litigation, where disputes commonly center on documentation, disclosures, and compliance with laws such as the federal Fair Debt Collection Practices Act (FDCPA) and state statutes governing judgment interest rates, signaling to the debt-buying industry that post-judgment calculations and recordkeeping can carry substantial legal and financial risk.