Midland Credit Management, Inc. (MCM) and Midland Funding, LLC are defendants in a proposed class action that accuses the companies of Fair Debt Collection Practices Act (FDCPA) violations. According to the lawsuit, MCM was retained by Midland Funding to collect a debt owed by the plaintiff and sent unlawful, “threatening” collection letters in the process.
According to the complaint, on March 23, 2018, MCM sent the plaintiff a letter that included the following statement:
“This letter is to inform you that we are considering forwarding this account to an attorney in your state for possible litigation…[i]f this account goes to an attorney, our flexible options may no longer be available to you.”
The lawsuit argues that this statement is false and misleading as the defendants had no real intention to withdraw flexible payment options, which they routinely continue to offer after debts are referred to attorneys for collection. The case goes on to argue that the letter sought to pressure the plaintiff into making immediate payment by making false threats suggesting the loss of time-sensitive options. On April 13, 2018, the plaintiff alleges that she received another letter from MCM that made similar “threats.”
The defendants violated the FDCPA by “using false, deceptive, or misleading representations or means” to collect the plaintiff’s debt, the lawsuit claims.