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Midland Funding Slapped With Class Action Award for Deceptive Collection Acts

By on June 15, 2010
Midland Funding Slapped With Class Action Award for Deceptive Collection Acts

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.

READ  Midland Funding Keeps Trying to Collect From Me


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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

4 Comments

  1. Hueypilot

    January 2, 2012 at 4:37 pm

    No one likes to be in debt or unable to pay their bills. The present economic condition has caused massive unemployment and with it the inability to offset obligations. People are living off credit cards and getting further in debt only to be sued by people like Midland Funding whom preys on these disadvantaged. Can you imagine the frustration of starting a new job after 1 1/2 years of search only to be discharged again because of garnishment of wages resulting from legal actions taken by Midlands unscrupulous attorneys. 

    People don’t have money to pay for defense attorneys, court filings, lawsuits, and Midlands lawsuit automation factory’s prevail in 90% of their cases because people can’t afford to defend themselves.

     This is a major contributor to a high percentage of bankruptcy, family breakups, violence and crime and most States.   

    We all need to write out Attorney Generals in every State and end these deceptive and illegal collection practices. Maryland, and Minnesota are setting some good examples. 

    Huey Pilot

  2. Wendell Berry

    July 15, 2010 at 12:49 pm

    I am in the state of Tennessee and being sued by Midland for an account with another company I had already paid off. The company in question can not be reached because they have closed their doors. I can not get a response back from Midland after leaving several messages. I have never heard of Midland Funding until now. I am due in court in a little bit and would like to know what can I do to find out if this company is authorized to do business in the State of Tennesee?

    Thanks……WB in Tennessee.

    • Steve Rhode

      July 15, 2010 at 1:02 pm

      A search of the Tennessee Department of State site could not locate Midland Funding.

    • Laura

      August 8, 2010 at 11:20 pm

      I am also being sued by Midland funding and due in court on Wednesday. Mine is from an old loan with American General. Have you found out any more info? What are you going to do?

      Thanks
      LS in TN

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