Midland Funding, a large debt collection agency that also purchased large amounts of debt for 3 to 4 cents on the dollar and then sued debtors, settled a large class action lawsuit and dropped over 10,000 lawsuits against debtors.
The case Johnson v Midland funding, filed in Maryland, alleged that Midland Funding, in cooperation with Mann Bracken, knowingly sued consumers in Maryland to collect debts when it was neither a registered company to do business in Maryland nor a licensed collection agency.
It is also alleged that Midland Funding, LLC also misrepresented the amount of debt dues and ignored the complaints of consumers being being sued by them that they were not authorized to do business in Maryland.
This class action addresses the planned, prolonged, illegal, and systematic abuse
of thousands of Maryland residents and consumers by Midland.
Midland acquires or services defaulted consumer debt that is bought for a few cents on the dollar. Midland then conducts business in Maryland by attempting to collect on consumer debts by contacting Maryland consumers and suing Maryland consumers, often after the statute of limitations has expired. Midland communicates with and sues Maryland consumers while refusing and failing to comply with Maryland statutes requiring registration of foreign businesses; while failing to comply with Maryland licensing laws regulating collection agencies; while assiduously violating federal and Maryland consumer debt collection statues; while unlawfully using the courts of Maryland; and while routinely violating the Maryland Consumer Protection Act. The communications from Midland to consumers are most often contradictory, inaccurate, and misleading. Virtually every act of Midland in its attempts to collect consumer debt in Maryland is an unfair and deceptive act precluded by both federal and Maryland statutes.
In addition to dropping the lawsuits they will also pay the consumers impacted from a fund of $200,000.
You can read the original complaint and all its juicy details here.
Midland Funding Slapped With Class Action Award for Deceptive Collection Acts by Steve Rhode
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