A Pennsylvania federal judge has dismissed a lawsuit accusing debt collector LMM Management of using the letterhead of an allegedly sham law firm to convince thousands of borrowers to pay delinquent debts.

U.S. District Judge Lawrence Stengel said letters sent to borrowers did not violate the Fair Debt Collection Practices Act because they included a disclaimer stating that no attorney had reviewed the borrower's case.

LMM Management, based in Levittown, Pa., provides call center services and has relationships with law firms that litigate in New Jersey and Pennsylvania, allowing the company to have close supervision of its managed legal portfolios. Additional details on the dismissed lawsuit were not immediately available.

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