Local consumers have received more than $1.4 million in a multi-state debt-buying case settlement.

SC Attorney General Alan Wilson joined 42 attorneys general in reaching a $6 million settlement with Encore Capital Group, Midland Credit Management and Midland Funding.

Debt buying involves buying and selling overdue debts from creditors and other account owners.

While the debt is often bought for pennies on the dollar, buyers seek the full balance from consumers.

This can involve filing actions in court against consumers, who may be unable to afford representation.

Many of these debt collection cases result in default judgments against the consumer, damaging their credit and leading to garnishment of their wages.

The settlement resolves investigation into Midland’s collection and litigation practices.