Unfair Debt Collection Lawsuit Filed Against Midland Funding

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A Texas resident has filed a Fair Debt Collection Practices Act (FDCPA) lawsuit against the debt collection company Midland Funding LLC alleging that the company harassed her over an alleged debt owed by the plaintiff.

Jeri Benoit filed the FDCPA lawsuit against Midland for allegedly committing unfair debt collection practices regarding Benoit’s debt owed to GE Capital Retail Bank. In May of this year, Midland contacted Benoit by letter seeking to collect $5,083.

“However, Defendant’s correspondence was confusing as it stated that vague additional charges may continue to accrue on some or all of the balance due until the account is satisfied,” the unfair debt collection lawsuit says.

Additionally, Benoit claims that Midland’s correspondence stated that her account was under inspection by Midland’s “internal legal collections department … for possible initiation of legal proceedings against you.” Midland then allegedly proceeded to threaten the plaintiff with “possible” legal action if the debt was not paid.

“Based on these statements, the least sophisticated consumer would receive this information as a threat of legal action for non-payment, and in fact, Plaintiff believed that legal action was imminent,” the FDCPA lawsuit says. However, Midland never sued Benoit over the debt and allegedly never intended to, which the unfair debt collection lawsuit asserted would make these letters acts of coercion.

Benoit’s debt collection lawsuit accuses Midland Funding LLC and its partner Midland Credit Management of five separate violations of the FDCPA including making false statements, misleading representation, and empty threats of legal action.

The FDCPA Lawsuit is Benoit v. Midland Funding LLC, et al., Case No. 3:14-cv-00290, in the U.S. District Court for the Southern District of Texas.

What is the Fair Debt Collection Practices Act (FDCPA)?

In 1978, Congress passed the FDCPA with the intention of curbing creditor and debt collectors’ unfair debt collection practices. While debt collection as a business is not illegal, debt collections companies must respect borrowers’ rights and the FDCPA’s laws work to protect borrowing consumers from debt collection abuse.

According to the FDCPA, unfair debt collections practices that infringe on the rights of the consumer include:

• Debt collection harassment
• Telephone harassment
• False statement and deceptive practices
• Collection of debts not owed by the consumer
• Collection of expired debts
• Improper reporting of the debtor’s loan to credit reporting agencies
• Refusing to cease communication even under request
• Improper communication between the lenders and other third parties

Midland Funding LLC is not the only creditor or debt collection agency facing potential lawsuits and FDCPA class action lawsuits from U.S. consumers. Many consumers are discovering their rights under the FDCPA and pursuing litigation against companies that allegedly violate these laws.

Join a Free Unfair Debt Collection Class Action Lawsuit Investigation

If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).