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Case ID: 3115 | Credit / Debt | 02/02/2004
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. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Credit / Debt Cases of Interest A statewide class action has been filed in Indiana against collections specialist Account Receivable Collections, LLC. The action is brought on behalf of all Indiana consumers who received an initial collection letter from Account Receivable that demanded immediate payment of their debt. The action is brought under the Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief. State and federal laws require that lenders deal with consumers in a straightforward and honest manner. The parties have reached a tentative partial settlement in a national class action against lenders First Union National Bank of Delaware, First Union Home Equity Bank, and First Union Home Equity Corporation on behalf of all persons who obtained a home equity or other loan that resulted in a mortgage from the lenders that was brokered or referred to First Union by either Pennsylvania Resource Corporation or First Liberty Financial Services at any time between May 10, 1995, and the eventual date of any judgment in the action.
Four loan officers filed a class action under Florida's new Minimum Wage Amendment to the Constitution on September 27, 2005, for unpaid minimum wage and a collective action against Residential Finance Corporation, and its two principal officers Michael Isaacs and David Stein, for failure to pay minimum wage and overtime compensation. Plaintiffs are represented by attorneys in Florida. "This may be the first class action filed under Florida's new minimum wage constitutional provision" states one of the attorneys representing plaintiffs. The parties have reached a $1.65 million settlement in an administrative proceeding filed against Fairbanks Capital Corporation on behalf of nearly 40,000 Florida borrowers over claims that the company required illegal late fees and other charges. Persons eligible to take part in the settlement should contact the attorneys who prosecuted the action. A class action lawsuit has been filed on behalf of Kansas residents who were the subject of garnishment proceedings initiated by Midwest Checkrite, Inc. The suit alleges that Midwest Checkrite failed to adhere to the requirements of the federal fair debt collection practices act with respect to its garnishment efforts. Whether it is a home loan, a car loan, or a debt consolidation loan, borrowers must be wary of predatory lenders. In many cases, a predatory lender will use deception, high-pressure sales tactics, or excessive fees to lock a borrower into a cycle of debt. All too often, the borrower victimized by a predatory lender ends up in bankruptcy, or loses his home, or is forced into a cycle of debt. |
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