Midland Credit Management Faces Claims of Non-Compliant Letters

New to ClassAction.org? Read our Newswire Disclaimer

Midland Credit Management, Inc., an affiliate, and their parent company are facing claims that they failed to properly communicate in collection letters sent to consumers. The plaintiff says he was sent a collection letter that stated a “current balance” and noted “post charge-off interest accrued” as $194.98. The letter allegedly failed to clearly disclose whether interest was accruing on the account, and if so, how it would be calculated. The “post charge-off interest” note implies that interest is accruing; however, the plaintiff lacked the information needed to determine the rate of accrual, according to the lawsuit. As a result, he argues that he is unable to calculate the true amount of his alleged debt and cannot make an informed decision about how to settle it. The suit claims that the defendants’ lack of disclosure violated the Fair Debt Collection Practices Act and harmed consumers such as the plaintiff.