Midland Funding Debt Collection Dismiss Order issued by CFPB

Millions of dollars of Midland Funding debt collection was dismissed pursuant to a civil settlement with the Consumer Finance Protection Bureau (CFPB).

The government agency found Midland Funding debt collection lawsuits were filed against thousands of consumers without sufficient proof of the debt claimed. This debt buyer received the credit card accounts by assignment of debt from the original creditor. Therefore, Midland Funding did not have all the required documents to establish their claims.

Midland Funding LLC along with its parent company Encore Capital, and affiliate Midland Credit Management, agreed to the CFPB settlement requiring it to pay up to $42 Million dollars in debt collection refunds, along with a $10 Million dollar fine.

Further, the CFPB ordered Midland Funding debt collectors dismiss $125 Million dollars of active collection agency claims and discontinue collection lawsuits.

Midland Funding debt collection lawyers filing cases in Brooklyn & Queens NYC are Rubin & Rothman, Pressler & Pressler, Forster & Garbus, Selip & Stylianou f/k/a Cohen & Slamowitz, and Solomon & Solomon.

Midland Funding Debt Collection Violations

Midland Funding’s unlawful conduct included the following:

  1. Making false threats of lawsuits even though Midland Funding had no intent to sue.
  2. Robo-signing affidavits of debt without reviewing necessary account documents. These affidavits were used in court filings, resulting in judgments and wage garnishments.
  3. Suing debtors after the statute of limitations had expired, and sending debt collection letters that failed to disclose the debt was “time barred” for suit.
  4. Requiring debtors to disprove the debt, instead of offering proof themselves. The are largely based on default judgments having been entered pursuant to account affidavits alleging the debtor’s failure to dispute the debt satisfied the debt collector’s burden of proof. By law, a collection agency must file affirmative proof of the debt in order to enter a default judgment.
  5. Failure to investigate debtor disputes, or ignoring the disputes altogether. Encore Capital required debtors to provide overly burdensome documentation to support a dispute. Midland Funding collected on debts they knew or should have known the consumer did not owe.
  6. Harassing debt collection phone calls made very frequently and at unlawful hours of the day and night.

Click here to read a copy of the Midland Funding debt collection dismissal order entered into by Encore Capital with the CFPB.

Do you need a Midland Funding debt collection dismissed? Call our debt defense lawyer for a free consultation today.