Lawsuit: Midland Credit Management Misinformed Consumers of Debt Collection Laws

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action has been filed against Midland Credit Management, Inc. over claims that the defendant sent collection letters to consumers that attempted to mislead them into forgoing their protections under federal law. According to the suit, the letters informed recipients that the age of their debts prevented the defendant from suing them to collect it. The complaint argues, however, that the letters then presented consumers with several settlement options and neglected to mention that any partial payments on the debts would renew the statute of limitations and the possibility of litigation.

“Effectively,” the complaint reads, “if [the consumer] takes advantage of any of the options, he is in a worse position than if he had done nothing.”