Midland Credit Management Hit with Debt Collection Suit Over ‘Ambiguous’ Letter

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Midland Credit Management, Inc. is facing a proposed class action that claims it sent a New York man a collection letter that was subject to multiple interpretations. The letter allegedly contained several settlement options and the following statement:

“[I]f you pay your full balance, we will report your account as Paid in Full. If you pay less than your full balance, we will report your account as Paid in Full for less than the full balance.”

The suit argues that this statement is misleading because it contains “ambiguous language” that fails to clearly specify which actions will result in which reporting options, noting several interpretations that a reasonable consumer could conclude after reading the statement.

The complaint further notes that the defendant failed to identify to whom it will report the information – a credit reporting agency, the plaintiff’s creditor, or both.

The case also alleges the settlement deadline listed in the letter was meant to “create a false sense of urgency” in the plaintiff and coerce him into paying the debt more quickly.

The complaint was originally filed in the Supreme Court of the State of New York and has been removed to federal court.