Lawsuit: Debt Collectors Attempt to Trick Consumers into Renewing SOL on Debts

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Midland Credit Management, Inc.; Midland Funding LLC; and Encore Capital Group, Inc. are on the receiving end of a proposed class action lawsuit filed by an Illinois man who claims the defendants sent him a deceptive debt collection letter. The notice allegedly offered the man three settlement options and then stated: “The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it.”

The suit argues that the language in the notice implies that the defendants are simply choosing not to sue the plaintiff when they are actually prohibited from doing so. Further, the complaint claims, the letter notably failed to mention that if the plaintiff makes any payments toward one of the three settlement options, he will renew the statute of limitations on his debt and allow the defendants to commence litigation against him.

The case alleges that the defendants’ language “is calculated to induce either a payment or a response from [the plaintiff] acknowledging the debt and a promise to pay,” thereby allowing them to pursue more aggressive collection methods.