Midland Credit Management Sends Vague, Misleading Debt Collection Letters, Claims Class Action Lawsuit

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Midland Credit Management Class Action Lawsuit Overview:

• Who: A Philadelphia resident filed a Midland Credit Management lawsuit. 
• Why: The plaintiff claims that Midland Credit Management’s debt collection letters are vague and can mislead consumers into paying more.
• Where: The class action lawsuit was filed in Pennsylvania federal court.

A Philadelphia resident filed a class action lawsuit against debt collector Midland Credit Management for violating debt collection laws by knowingly sending a vague and misleading collections letter. 

The lead plaintiff is Shannon Smith, says she received a deceptively worded debt collection letter from the company in June 2021. Smith claims the debt collections company’s actions violate consumer protection debt laws that intend to combat “the use of abusive, deceptive, and unfair debt collection practices by many debt collectors,” according to the Midland Credit Management lawsuit. 

Smith wants to represent Pennsylvania who received similar letters from the debit collection company in the past year in the Midland Credit Management lawsuit.  

Midland Credit Management Lawsuit Claims Debt Letter Vague

The letter Midland Credit Management sent to Smith outlined three options for her debt repayment: one for 10 percent off her balance in one payment, one for 5 percent off in six payments, and one for “‘Monthly Payments As Low As’ – Payments as low as $50 per month,” according to the class action lawsuit.

Smith says that the third option is vague, since it could indicate either $50 monthly payments until the debt is paid off or an unspecified discounted amount in monthly $50 payments. Further, when placed alongside other discount offers, the third option could be misconstrued as another discount offer, which would not be the case if the debtor was expected to pay $50 per month until the debt was paid.

Due to this confusion, Smith was “unable to evaluate her options of how to handle this alleged debt,” and spent time and money trying to figure out what to do, according to court documents. 

The Midland Credit Management lawsuit demands awarding of statutory and actual damages and costs of the class action lawsuit including attorneys’ expenses. 

Have you received a similarly confusing letter from a debt collector as the plaintiff in the Midland Credit Management lawsuit? What was your experience like? Let us know in the comments below!

The plaintiff is represented by Antranig Garibian for Garibian Law Offices, PC. 

The Midland Credit Management Class Action Lawsuit is Smith v. Midland Credit Management Inc., et al., Case No. 2:21-cv-03718, in the U.S. District Court for the Eastern District of Pennsylvania.

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