Lawsuit: Midland Credit Management Faces Alleged FDCPA Violations

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A New York woman has filed suit against Midland Credit Management Inc. (also known as Midland Funding, LLC), claiming the debt collector violated provisions of the Fair Debt Collection Practices Act in not clearly communicating the amount of her alleged debt and failing to inform her of her options to respond. The letter supposedly stated a “current balance” without indicating whether the alleged balance was static or whether it would increase due to interest and other charges. The suit argues that this lack of disclosure forces the unsophisticated consumer to guess how much money will satisfy his or her account.

The letter further informed the plaintiff that she could either enclose the stated amount in the provided envelope or contact Midland Credit Management by telephone to resolve the account, according to the complaint. The suit argues that the letter failed to mention the plaintiff’s right to dispute the alleged debt in writing, and that it “overshadows and contradicts the consumer’s validation rights.”