Illinois Man Accuses Debt Collector of Serious FDCPA Violations

Midland Funding LLC is facing serious allegations of FDCPA violations from an Illinois resident alleging the company had inaccurately reported his debt to Experian. The claimant alleges that Midland also failed to correct this mistake, in violation of federal and Illinois debt collection laws.

Plaintiff Terry B. points out a multitude of alleged FDCPA violations in his claim, including how Midland failed to report the fact that the alleged debt is disputed. Terry says this failure created a “real risk of financial harm caused by an inaccurate credit rating.”

According to the FDCPA lawsuit, the debt in question is expired and is not eligible for collection under Illinois state law or federal policy. According to his FDCPA violations lawsuit, Terry incurred the debt for typical goods and services, but became unable to pay it due to his financial circumstances.

This allegedly caused the debt to default to Citibank NA, and it was later purchased by Midland. After receiving notice of the debt, Terry says, he consulted with his law  yer and sent a letter to Midland dated June 28, 2017, stating that “the amount reported is not accurate.”

Soon after the letter was sent to Midland, Terry says he obtained his credit report from Experian and found a problem with the reported debt, which allegedly was caused by Midland. He claims this inaccurate credit report reportedly caused Terry’s credit score to lower because the company allegedly failed to note to Experian that the debt was disputed.

It is important to note that at the time the credit report was dated in 2018, it had been over one year since Midland had notified that Terry was disputing the debt. Failing to clarify that a debt is currently being disputed and having improper contact with credit reporting agencies are both FDCPA violations.

Terry has since filed legal action against Midland, seeking a remedy for the long term financial damage the company caused to his credit score.

Overview of FDCPA Violations

The FDCPA (Fair Debt Collection Practices Act) is a federal law that helps consumers combat aggressive debt collectors, which was first established by Congress in 1978.

While debt collection is not inherently illegal, the FDCPA prevents collection agencies and their employees from conducting themselves in an abusive or intimidating manner against consumers.

The FDCPA prohibits debt collectors from trying to collect on expired debts, using abusive language or harassment, as well as sending out debt collection letters that are designed to be confusing and intimidating to the average consumer.

Debt collectors are also prohibited from trying to collect on an expired debt and must provide some form of proof to prove the validity of the debt. Failure to comply with any of these rules constitutes as FDCPA violations. In addition to the FDCPA, some states like Illinois have their own debt collection policies that help protect consumers.

The Illinois Fair Debt Collection Practices Act states that a debt collector cannot call at unusual times or places, and forbids debt collectors to communicate with consumers who are represented by attorneys.

Terry is filing this FDCPA lawsuit seeking multiple damages against the federal policy and Illinois state law, along with any other relevant charges. FDCPA violations can be up to $1,000 per penalty, which can quickly add up for any company.

This FDCPA Violations Lawsuit is Case No. 18-cv-05538, in the U.S. District Court of Northern Illinois, Eastern Division.

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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.