Class Action: MCM, Midland Funding Misled Consumer Concerning Payment Deadlines

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In a proposed class action out of New York federal court, a consumer alleges that Midland Credit Management, Inc. (MCM) and Midland Funding, LLC falsely suggested he may lose the option to settle his Capital One Bank debt absent timely payment.

The case’s timeline begins in November 2018, when the plaintiff received a letter that supposedly stated legal action may be taken against him should he not make a payment by the listed deadline and warned, “If the account goes to an attorney, our flexible options may no longer be available to you.”

According to the suit, the defendants’ deadline was “illusory and arbitrary” because the man received another letter the following December that again offered flexible payment options.

“Defendants’ notices used language to create a deceptive sense of urgency in Plaintiff and implied certain deadlines, which would change with each subsequent dunning notice,” the suit argues.

The lawsuit goes on to say that in January 2019, the plaintiff placed a call to MCM in search of more information on the letters. During the call, the complaint claims, a representative “immediately demanded full payment” and threatened that legal action would be taken if the man did not pay the debt in full by the end of February. The case argues the representative made “conflicting representations regarding payment amounts and deadlines” and wrongly implied that the plaintiff had no other option but to pay the account in full.