Midland Credit Management Lawsuit

Erica · Feb 5, 2004

From www.classactionamerica.com

California Residents Target Midland Credit Management's Collection Practices
A statewide class action has been filed in California against collection specialist, Midland Credit Management, Inc., who operate under the name Kansas Midland Credit Management, Inc. The action is brought on behalf of all California residents who received a collection letter from Midland which offered to settle their alleged debt for a lesser amount, if payment was made immediately. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.

This action arises from the alleged policy of Midland in which they include in their collection letters an offer to settle the outstanding debt for a reduced rate. The settlement offer is, according to the letters, a limited offer, requiring immediate payment. According to consumers, this offer is misleading and deceptive because Midland is allegedly always prepared to negotiate a settlement for a lesser amount. Thus, the language requiring immediate action is claimed to be deceptive to consumers because they are given the impression that they need to act immediately in order to have an opportunity to discharge the debt at a reduced rate. The consumers claim that this has a coercive effect, limiting their ability to challenge the validity of the debt and limiting their ability to make an informed decision about the debt.
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cnoob · Feb 6, 2004

Re: Midland Credit Management Lawsu

Are collection agencies required to keep logs of all letter sent while trying to collect a debt?

lbrown59 · Feb 7, 2004

Re: Re: Midland Credit Management Lawsu

Originally posted by cnoob
Are collection agencies required to keep logs of all letter sent while trying to collect a debt?
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does anyone know?????????

IrishDiva · Feb 8, 2004

Re: Re: Midland Credit Management Lawsu

When I worked at ACE in Phoenix (in client services) the letters were automaticlly generated - the type was based on the code punched in. When we would pull up an account, we could see which letter(s) were sent when.

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