Midland Funding LLC Class Action Report
Midland Funding, LLC Class Action Report
Deceptive Collection Litigation
A number of class action complaints were filed against Midland Credit Management, Inc. (MCM) and Midland Funding, LLC last year. One lawsuit, filed in New York’s Southern District, alleges that the two companies violated federal law by sending misleading and deceptive collection notices that included false deadlines and legal threats that were either not actionable or never intended in the first place.
The complaint claims that Midland Funding LLC’s notices implied to consumers that if their debts weren’t paid before a certain deadline, they may lose their power to settle their debt in the future. This may have worked for MCM had they meant what they’d written in the notices. Instead, however, many defendants received a series of notices with changing deadlines, which makes the notices “illusory and arbitrary.” Other deceptive collection practices alleged in the lawsuit include MCM representatives demanding immediate full payment of debts over the phone and threatening garnishment of current or future wages.
Another class action complaint filed last year in Delaware’s federal district court on behalf of a class of Pennsylvania consumers also alleged deceptive and false or misleading representations in violation of the Fair Debt Collection Practices Act (FDCPA). The complaint focuses mainly on deceptions by MCM with regard to “time-barred” debt. Time-barred debt is debt that has exceeded its state’s statute of limitations, or expiration date. Once the debt becomes “time-barred” it can no longer be collected on. What NO debt collector wants you to know, is the exception to that rule: that after a debt becomes “time-barred,” even making a small payment starts the statute of limitations over and allows debt collectors to continue trying to collect on the debt, including bringing lawsuits. Knowing this, MCM allegedly sent collection notices to many consumers whose debts were too old at that point to be collected on, and failed to include on the notices any information addressing (1) the fact that the debts were “stale,” and (2) the fact that if the defendants paid anything on the debts, the statute of limitations could start over, (3) if the statute of limitations starts over, they can be sued again for the debt.
Through deceptive means, MCM tried to convince, or bully, as many of these Pennsylvania consumers as possible into paying even a tiny payment towards their debt. What they are really doing is taking debt they currently can’t collect on, and tricking consumers into making a payment so that the statute of limitations starts over and the debt can again be collected on.
Don’t allow yourself to be deceived! If you’ve received a collection notice from Midland Credit Management, Inc. or Midland Funding, LLC, give us a call today to find out how we can help.
For more information about Class Action Land: Midland Funding, LCC/Midland Credit Management, contact The Law Office of Michael A. Ziegler, P.L. today.
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