Midland Sued in Debt Collection Class Action by NY Resident

A Fair Debt Collection Practices Act (FDCPA) class action lawsuit has been filed against Midland Credit Management Inc., alleging the debt collection company violated FDCPA law by engaging in abusing and unfair debt collection practices.

Plaintiff Arie H., a resident of New York, claims he began receiving letters from Midland in November 2013, informing him that the company was seeking to collect on an alleged debt.

According to the Midland FDCPA class action lawsuit, the debt collection letters from Midland to the plaintiff states, “The offer in this letter to settle your account remains open until 01-11-2014. If we do not receive your payment by 01-11-2014, the amount you owe may be greater because of interest that may vary from day to day.” Arie claims he received at least six more similar debt collection letters from Midland between November 2013 and December 2014.

During this same time period, interest was not charged or has since been charged to Arie’s account, contrary to what the Midland threatened to do in the debt collection letters.

The FDCPA class action lawsuit alleges:

“Defendants’ letters bore to the Plaintiff a false sense of urgency as they implied that if the Plaintiff did not pay on the offer by the due date, his account balance would have increased because of interest. In addition, the letter continued to state: ‘In the event you fail to complete arrangements, interest will be applied from the date it was stopped and added to the Current Balance.’”

Arie alleges Midland’s language was deceptive and misleading. For example, phrases such as “the amount you owe may be greater because of interest that may vary from day to day,” left Arie uncertain as to the final amount of the alleged debt.

The plaintiff further alleges that through the actions detailed above, Midland violated FDCPA statutes. Arie is seeking statutory and actual damages, attorney’s fees, and any other forms of relief deemed fit by the court.

Arie seeks to represent himself in this Midland FDCPA class action lawsuit, as well as a Class that would include similarly situated individuals, which can be readily identified from Midland’s records.

The Midland FDCPA Class Action Lawsuit is Case No. 1:15-cv-00807-JG-VMS, in the U.S. District Court for the Eastern District of New York.

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

The Fair Debt Collection Practices Act (FDCPA) are laws set in place by the federal government to restrict creditors and debt collectors from practicing unfair debt collection. Debt collection as a business is not illegal, but debt collection companies must respect borrowers’ rights and follow protocol.

According to the FDCPA, unfair debt collection 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 debtors loan to credit reporting agencies
• Refusing to cease communication even under request
• Improper communication between the lenders and other third parties

Arie is not the only consumer filing an FDCPA lawsuit against a loan servicer or debt collector like Midland Credit Management. Dozens of individuals are now filing FDCPA lawsuits or joined FDCPA class action lawsuits against companies who allegedly practice unfair debt collection practices like Midland.

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).

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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.