A proposed class action filed in South Carolina federal court accuses Midland Credit Management, Inc. (MCM) and Midland Funding, LLC of violating the Fair Debt Collection Practices Act (FDCPA) by misrepresenting a consumer’s rights concerning his time-barred debt.
The defendants allegedly sent a collection notice to the plaintiff in August 2017 regarding a debt owed to Credit One Bank, the lawsuit says. The case argues that the letter contained deceptive language and omissions that could lead the consumer to unknowingly waive legal protections afforded to him. According to the complaint, the letter stated, in part:
“The law limits how long you can be sued on a debt… Due to the age of this debt, we will not sue you for it.”
The suit claims this language misrepresented the consumer’s legal rights by implying the defendants have chosen not to sue the plaintiff when, in fact, neither the defendants nor any subsequent creditor can file suit over the time-barred debt. The case further argues that the defendants unlawfully failed to disclose that any payment made would renew the debt’s statute of limitations, which would allow the plaintiff to be sued over the obligation.
“These deceptive statements and material omissions by the Defendants are harmful to the Plaintiff, since they fail to clearly state the legal status of the debt and potential ramifications for paying or not paying,” the complaint reads.