Midland Credit Management Facing Lawsuit Over Time-Barred Debt Collection

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A proposed class action claims Midland Credit Management, Inc. sent a collection letter that attempted to deceive the plaintiff regarding her time-barred debt. According to the complaint, the letter contained the following statement:

“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…”

The lawsuit argues that this statement is misleading because it implies that the debt collector has decided not to sue the plaintiff when, in reality, the defendant and the woman’s creditor are both prohibited by law from filing suit against her. In fact, the case continues, the letter fails to mention the creditor’s rights at all and leaves the plaintiff to wonder whether she will face a lawsuit over her obligation in the future.

The case takes further issue with the settlement offers contained in the letter, arguing that they entice the plaintiff into paying a portion of her debt without disclosing that any partial payments will restart the statute of limitations and renew the defendant’s right to pursue more aggressive collection methods.