Lawsuit: MCM’s Collection Letter Could Mislead Consumers

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Midland Credit Management, Inc. (MCM) is the defendant in a proposed class action that alleges violations of the Fair Debt Collection Practices Act (FDCPA). According to the suit, the debt collector sent the plaintiff a collection letter that contained his “Current Balance” but neglected to specify whether the account was subject to interest or additional fees. From the complaint:

“[The plaintiff’s] account was not subject to the accrual of interest, but by stating a ‘Current Balance,’ [the defendant] falsely suggested that immediate payment of the balance would benefit [the plaintiff] by implying that the Balance would be subject to change, and could be subject to additional interest.”

Alternatively, the suit suggests, if the plaintiff’s account was subject to interest, the letter failed to clearly disclose the interest rate, date of accrual, and any other information that would allow the plaintiff to calculate the true balance of his alleged debt.