Midland Credit Management, Midland Funding Sued Over ‘Threatening’ Collection Letter

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Midland Credit Management, Inc. and Midland Funding, LLC are facing a proposed class action over allegedly unlawful debt collection practices. The case alleges that the plaintiff received a collection letter stating “[i]f this account goes to an attorney, our flexible payment options may no longer be available to you.” The lawsuit argues that this statement was misleading and effectively violated the Fair Debt Collections Practices Act.

“[The] defendants routinely offered individuals flexible payment options even after a debt has been referred to an attorney for collections,” the case says.

The lawsuit argues that the statement made in the letter was false and meant to intimidate the plaintiff into making immediate payment. It further alleges that the defendants have sent similar letters threatening the loss of payment options to more than 40 people during the year before the complaint was filed.