Midland Credit Management Hit With Debt Collection Lawsuit

Midland Credit Management Inc. was hit with a debt collection class action lawsuit alleging that the debt collection agency used illegal practices when trying to collect a debt.

New York plaintiff Levi Huebner is filing a Federal Debt Protection Collection Act (FDPCA) lawsuit against Midland Credit Management. Huebner alleges that the company had used illegal intimidation tactics when he challenged the debt.

Huebner is filing this debt collection class action lawsuit on behalf of himself and all other victims who allegedly faced the severe debt collection harassment from Midland. The New York man’s own plight allegedly had to do with a consumer debt incurred from a Verizon account.

The debt collection incidents reportedly started occurring on Oct. 17, 2013 when the plaintiff spoke to a Midland representative regarding a Verizon account the defendant owned. At no point in time did Huebner claim responsibility to this account, but Midland resorted to various threats when he refused to accept and pay the debt, according to the FDPCA class action lawsuit.

Huebner’s initial response to the debt was asking how he could go about disputing the debt, to which the Midland Credit responded by requesting Huebner to tell the company what he was disputing and allegedly threatening Huebner that this was a communication violation.

However, the federal debt collection law does not require consumers to provide any reason or validation in the case they dispute a debt, and does not give a company the right to threaten violations or penalties.

Huebner contends in the debt collection lawsuit that the phone records and witness testimony shows that Midland Credit and its employees had never intended to follow through with the his validation rights, and that its employees willfully violated federal regulations by demanding reason for the New York man’s dispute. Additionally, Midland did not have the right to threaten discommunicate when Huebner disputed the Verizon account, the FDCPA class action lawsuit alleges.

Huebner further states that Midland and its employees willfully violated the debt collection law, with the evidence indicating that the company has done so for a number of years.

Additionally, these alleged violations appear to be routine practice, with many other debt collection victims alleging similar accounts of harassment. Therefore, Huebner is suing Midland Credit for illegal debt collection practices and for causing him fear, emotional and mental anguish, and a significant amount of stress.

This Debt Collection Class Action Lawsuit is Levi Huebner v. Midland Credit Management, Case No. 1:14-cv-06046-BMC, in the U.S. District Court for the Eastern District of New York.

Overview of FDCPA Violations

The FDCPA was approved and passed by Congress in 1978 to battle against unfair debt collection practices used by a variety of financial companies. While debt collection itself is perfectly legal, the federal debt collection law establishes rules and regulations that companies must follow when trying to collect from these people.

The FDCPA also provides potential victims with the means of challenging these debt collection allegations and allows them to prove the accuracy and validity of these alleged debts.

Under the FDCPA, a debt collector is anyone who regularly collects debts that are owed to different parties from the borrower. The FDCPA has very strict regulations for debt collectors to follow, fining any violators with $1,000 in statutory damages, plus any actual damages the debtor may have suffered.

Generally, any debt collector will find themselves in violation of the FDCPA if it commits one or more of these acts:

• Debt collection harassment
• Telephone harassment
• False statements and deceptive practices
• Collection of expired debts
• Making improper reports to credit reporting agencies
• Failure to cease communication upon request
• Improper communication with third parties

DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.