Midland Credit Management Faces Claims of Debt Collection Violations

Midland Credit Management Inc. is facing a New York woman’s debt collection violations lawsuit alleging the company violated debt collection laws after she received a notification letter constituting what she describes as an empty threat of legal action if she did not pay her alleged debt.

Plaintiff Ella S. filed the debt collection violations lawsuit in New York federal court. The lawsuit was filed on Jan. 19, 2018.

According to the debt collection violations lawsuit, Ella is seeking redress for the alleged illegal practices committed by Midland and for violations of the Fair Debt Collection Practices Act.

Ella says that it was on Jan. 18, 2017 that Midland sent her a collection letter. The letter allegedly stated that they would act against her if she did not pay her alleged debt. But according to the FDCPA, it is illegal to say so if the company has no intention of doing so.

According to the debt collection violations lawsuit, “The Defendant’s statement in the said letter of ‘possible litigation’ and ‘we may proceed with forwarding this account to an attorney,’ constituted an empty threat of legal action in order to scare the Plaintiff into paying the alleged debt.”

The debt collection violations lawsuit contends that Midland violated Ella’s rights to an honest and truthful debt collection process. She alleges that she was the target of “misleading debt collection communications,” and according to FDCPA regulations she has the right to not be targeted in such a manner.

Filing a Debt Collection Violations Lawsuit

The Fair Debt Collection Practices Act (FDCPA), was enacted in 1978 to protect consumers against harassment and unfair debt collection practices committed by third-part debt collectors.

The FDCPA prohibits certain actions by third-party debt collectors and provide rules for behaviors that they must follow. Some regulations provided by the FDCPA include the time a third-party debt collector can be in contact. Typical hours are 8:00 AM to 9:00 PM. Unless an arrangement is made between a debtor and debt collector, third-party debt collectors are only permitted to call during these times.

Other actions prohibited by third-party debt collectors include threatening and harassing telephone calls. A debt collector is prohibited from using profane language when attempting to collect on a debt.

If a debtor raises any objection to any kind of contact, either verbally or in writing, a third-party debt collector must abide by that request. If a third-party debt collector received a “cease and desist” request notice, a debt collector can only be in contact with a debtor through an attorney. “Cease and desist” letters also mean that a debtor refuses to pay a debt.

Other actions prohibited by the FDCPA include sending confusing letters to consumers that might be misunderstood by the “least sophisticated consumer.” It also includes the collection on old debts, adding collection charges or fees to a debt and calling too often.

The Debt Collection Violations Lawsuit is Case No. 1:18-cv-00385-ENV-CLP, in the U.S. District Court for the Eastern District of New York.

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If you live in New York and 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).

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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.