MCM Facing Lawsuit Over Alleged Misrepresentations of Woman’s Time-Barred Debt

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Midland Credit Management, Inc. (MCM) is facing a Delaware woman’s claims that the debt collector violated federal law by failing to inform her of the legal status of her alleged debt. The plaintiff says she received a collection letter regarding an obligation purportedly owed to Verizon Pennsylvania, Inc. in which the defendant offered the woman three settlement options. Further down, the letter allegedly stated:

“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.”

The lawsuit claims the defendant failed to inform the plaintiff that the statute of limitations on her debt had expired and that, in consequence, Midland was not permitted to sue her over it. Even further, the case attests MCM neglected to mention that any partial payments the plaintiff made – including the acceptance of one of the settlement options – would renew the debt’s statute of limitations and allow the defendant to commence litigation.

“In fact,” the complaint reads, “had [the plaintiff] chosen a payment plan option, and advised Defendant of this in writing, the partial payment would revive the statute of limitations rendering the Plaintiff worse off than if she had rejected the offer.”