Consumer Claims MCM, Midland Funding Misrepresented Time-Barred Debt

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Midland Credit Management, Inc. (MCM) and Midland Funding have been named in a proposed class action that takes issue with a collection notice sent by the defendants regarding a time-barred debt.

According to the case, MCM sent a letter to a Washington consumer in an attempt to collect a debt on behalf of Midland. The September 2017 letter stated, in part: 

“The law limits how long you can be sued on a debt…
Due to the age of this debt, we will not sue you for it.”

In this statement, the defendants implied they have chosen not to sue the plaintiff, “instead of the true statement that neither Defendant nor any subsequent creditors can file a lawsuit” because the statute of limitations on the debt had expired, the suit says.

Moreover, the letter supposedly contained a settlement offer while simultaneously failing to disclose that any payment made may restart the debt’s statute of limitations.

“These deceptive statements and material omissions by the Defendants are harmful to the Plaintiff, since they fail to clearly state the legal status of the debt and potential ramifications for paying or not paying,” the complaint summarizes.