Midland Credit Management (MCM), a debt buyer headquartered in San Diego, has had a prominent presence in Texas courtrooms with lawsuits focused on debt collection. When consumers fall behind on debt, original creditors can sell this delinquent debt to companies like MCM for pennies on the dollar. Debt buyers then initiate collection actions, frequently including lawsuits, to recover a higher amount from the debtors. These lawsuits have resulted in a complex legal landscape with crucial implications for consumer rights.
Midland Credit Management in Texas
MCM uses the court system to enforce collections forcefully, making them regulars in Texas legal proceedings. While some lawsuits result in default judgments if consumers don’t respond, several have triggered counter-actions and ongoing court battles. Midland has drawn scrutiny from government authorities, including the Texas Attorney General.
Why Texas Residents Sue Midland Credit Management
Lawsuits filed against MCM by Texas residents highlight various common themes, including:
- Lack of Proof: Debt collection actions necessitate adequate documentation to establish ownership of the debt, its initial balance, and any interest due. Consumers can sue MCM if there’s a failure to provide crucial evidence.
- Statute of Limitations: Texas enforces a four-year statute of limitations on various debt types. Lawsuits aim to stop MCM from collecting time-barred (too old) debts .
- FDCPA Violations: The Fair Debt Collection Practices Act (FDCPA) is federal law meant to curtail excessive debt collection tactics. When MCM violates FDCPA provisions, lawsuits emerge, asserting deceptive practices, harassment, and other infringements against consumers.
- Robo-signing Scandal: Texas courts recognized issues with robo-signing (affidavits used in MCM claims, but signed without properly reviewing account data). Many residents filed lawsuits aiming to challenge default judgments.
| Complete Date | Case Name | Short Summary |
|---|---|---|
| 2015 | Texas Attorney General v. Midland Funding, LLC | Attorney General lawsuit alleging the company violated several legal provisions by filing lawsuits involving expired debts without adequate proof. |
| 2017 | Midland Funding LLC v. Brent Morse | This case reached the Texas Supreme Court, ruling in favor of Morse for Midland’s failure to adequately prove ownership of the debt |
| Various cases with “robo-signing” allegations | Lawsuits challenging MCM’s practice of robo-signing affidavits used in lawsuits to obtain default judgments. |
Impact of the Lawsuits
Midland Credit Management lawsuits bring crucial issues to the forefront:
- Consumer Protection: Lawsuits push back against aggressive debt collection actions, emphasizing the necessity of ethical debt collection.
- Proof of Debt: Debt buyers in Texas and nationwide now face heightened scrutiny to provide robust evidence to substantiate their legal collection rights.
- Legal Oversight: Lawsuits trigger attention from state regulators such as the Texas Attorney General, who can fine and sanction companies found to engage in misleading or unlawful debt collection activities.
If You’re Facing an MCM Lawsuit
- Respond: Ignoring the lawsuit won’t make it disappear; MCM might win with a default judgment.
- Seek Legal Help: Legal experts on debt law can assess your rights, MCM’s adherence to collection laws, and your options for mounting a defense.
- Don’t Overlook Time Limits: Statute of limitations and court deadlines dictate time frames for action.
Key Takeaways
While it’s essential to fulfill debt obligations, consumers are not defenseless against unfair tactics. If you believe your rights are being violated by Midland or other debt collectors in Texas, it’s crucial to consult legal professionals and fight for fair treatment.
