Lawsuit: Midland Credit Management Sent Debt Collection Letter Containing False Assurances

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A proposed class action has been filed against Midland Credit Management, Inc. by a California man who claims the debt collector misled him into believing his debt could not be reported to credit bureaus. According to the complaint, the defendant sent the plaintiff a debt collection letter that contained the following statements:

“The law limits how long a debt can appear on your credit report. Due to the age of this debt, we will not report payment or non-payment of it to a credit bureau.”

“Plaintiff read the above statement and believed, as would any unsophisticated consumer, that this debt, or payments or non-payments of it, cannot legally ever be reported to a credit bureau because of the age of the debt,” the suit argues. Federal law, however, allegedly indicates that a debt can be reported to credit agencies for seven years “from the date of last activity,” which, in the plaintiff’s case, was supposedly less than seven years prior.

In fact, the plaintiff claims, the defendant did continue reporting the alleged debt on the man’s credit report, meaning the statements in its letter were “false, deceptive, and prohibited by [federal law].”