MCM, Midland Funding Allegedly Misled Consumer Regarding Time-Barred Debt

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Midland Credit Management, Inc. (MCM) and Midland Funding, LLC are facing a lawsuit out of Florida federal court that claims the companies used “deceptive, misleading and unfair debt collection practices” when trying to collect on a woman’s time-barred debt.

According to the suit, the plaintiff received a letter from MCM in October 2017 attempting to collect a debt purportedly owed to Midland Funding. The letter supposedly stated, in part:

"The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it..."

Given that the plaintiff could not be legally sued for the time-barred debt, the case argues the letter falsely implied the defendants have chosen not to sue her, rather than accurately representing the legal status of the debt.

“The statement contained in Defendant MCM's Letter is materially deceptive to the unsophisticated consumer, who would believe that Defendants or a subsequent creditor has the option to change its mind should he/she not pay the alleged debt,” the case reads.

The suit further alleges the letter was deceptive in that it failed to disclose that any payment made toward the debt would restart its statute of limitations.