MCM, Midland Funding Sued Over ‘Unfair and Unconscionable’ Time-Barred Debt Collection

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Midland Credit Management, Inc. (MCM) and Midland Funding, LLC are the defendants in a proposed class action lawsuit out of Florida that accuses the debt collectors of misinforming a consumer about his debt dispute rights. The plaintiff says he received a collection letter from the defendants that offered him three payment plans and informed him that the “law limits how long you can be sued on a debt.” Though the debt collectors supposedly assured the man that they would not sue him because of the age of the obligation, the case claims the companies failed to mention that any partial payments would renew the debt’s statute of limitations.

“Despite the fact that a partial payment by Plaintiff could renew the statute of limitations on the entire amount of the Debt owed, the July 5, 2017 letter makes no mention of the substantial risks of a partial repayment,” the complaint reads, describing the alleged omission was “unfair and unconscionable.”