Midland Funding ‘Abused’ the Legal Process to Obtain Settlements, Class Action Alleges

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Hayt, Hayt & Landau, LLC (HHL) and Midland Funding, LLC are the defendants in a Pennsylvania man’s proposed class action alleging the defendants misused the legal process in order to settle debts with consumers.

The suit claims that in June 2018, law firm HHL delivered the plaintiff a “Notice of Deposition” regarding a debt purportedly owed to Midland Funding. The letter allegedly informed the man that a judgment was obtained against him and that he was required to testify at a deposition the following July regarding his “assets, income and property, which could be used to satisfy the judgment.” When the plaintiff and his legal counsel arrived at the location indicated in the subpoena, the case continues, HHL told the man “that there was no real intent to take a deposition, and that instead the Plaintiff was invited to settle the alleged debt.”

The complaint claims the defendants violated the Fair Debt Collection Practices Act (FDCPA) by threatening to take actions they did not intend to take. From the complaint:

“Defendant attempted to abuse the legal process by serving subpoenas on debtors - thereby requiring them to take time to gather documents, prepare for, and then attend, a deposition under threat of contempt -when in actuality no deposition was ever intended and instead the compelled appearance was just an underhanded way for Defendant to obtain settlements from debtors.”