NY Consumer Hits Midland Credit Management with FDCPA Class Action

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A New York man is the plaintiff in a proposed class action that alleges defendant Midland Credit Management Inc., which also goes by Midland Funding, LLC, violated federal debt collection laws in the course of its conduct with consumers. The lawsuit alleges the defendant, in collection notices sent to the plaintiff and proposed class members, claimed that forgiveness of the man’s debt would be reported to the Internal Revenue Service “as required by IRS regulations.” The plaintiff argues this language amounts to a threat made by the defendant to take legal action that it does not truly intend to act on:

“[The defendant’s] violations of the FDCPA created the risk of real harm that the plaintiff would perceive the defendant’s statement as a threat to report potential forgiveness of debt to the Internal Revenue Service when in reality, the amount allegedly owed on the debt would preclude such action,” the complaint asserts. “[The defendant’s] actions as described herein are part of a pattern and practice used to collect debts.”