Lawsuit: MCM Attempts to Trick Debtors Out of Statute of Limitations Protections

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Midland Credit Management Inc. (MCM) is facing a proposed class action lawsuit alleging the defendant violated the Fair Debt Collection Practices Act by misrepresenting the status of a consumer’s alleged debt. The plaintiff says she received a collection letter from MCM informing her that the age of her debt prevented the debt collector from reporting it to credit bureaus. What the letter failed to mention, according to the suit, was that any partial payments the plaintiff submitted in response to the defendant’s settlement offers would renew the statute of limitations on the debt, “rendering the [plaintiff] worse off than if she had rejected the offer.”