Debt Collectors Accused of Sending Illegal Threats, Extraneous Text

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Midland Credit Management, Inc. and Midland Funding, LLC are facing a proposed class action lawsuit filed by three plaintiffs who claim the defendants violated certain provisions of the Fair Debt Collection Practices Act (FDCPA). The first plaintiff says she received a letter from the debt collectors that was marked at the top as “PRE-LEGAL REVIEW” and informed her that if she did not contact the defendants or make a payment by a certain date, they “may proceed with forwarding this account to an attorney.” The suit argues that the letter’s “threat of litigation” is illegal under the FDCPA because it was an action the defendants did not intend to take and was included “only to unfairly scare consumers.”

The other two plaintiffs claim they received collection letters from the defendants delivered in envelopes that were marked in the top-right corner with “U.S. POSTAGE PAID MCM.” The complaint argues that the defendants are not permitted to include on envelopes sent to consumers “extraneous text” that may indicate the communication is from a debt collector.