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Midland Credit Invasion of Debtor’s Privacy Texas FDCPA Class Action

The Fair Debt Collection Practices Act (FDCPA) regulates the actions of third-party debt collectors in trying to collect consumer debts. The FDCPA is meant, the law says, “to eliminate abusive debt collection practices by debt collectors” and to protect consumers from them. The complaint for this class action alleges that Midland Credit Management, Inc. has violated the FDCPA and the Texas Debt Collection Act (TDCA) by improperly revealing information about consumer debtors to third-party vendors.

The class for this action is

  • All consumers with mailing addresses within the Eastern District of Texas
  • Where Midland Credit Management, Inc. used form collection letters to try to collect consumer debts allegedly owed for Synchrony Bank-branded credit cards.
  • Where Midland used a third-party letter vendor to transmit the collection letters, and
  • Where Midland’s use of the third-party letter vendor resulted in Midland sending the demographic information of the subject consumers as well as their status as alleged debtors to the letter vendor, in violation of Section 1692c(b) of the FDCPA.

The plaintiff in this case, Theressa C. Levine, incurred a consumer debt related to a credit card issued by Synchrony Bank.

Midland acted as the debt collector by causing two form collection letters to be sent to Levine. But the complaint alleges that Midland used a third-party vendor to prepare and mail the letters.

According to the complaint, Midland’s “operating system/software involves sending a debtor/consumer’s demographic information, as well as the existence and the amount of the debt, to [Midland’s] third-party vendor for the purpose of causing the letter vendor to merge this information into letter templates that [Midland] uses to collect consumer debts.”

The complaint claims that this communication of information violates the FDCPA: “Section 1692c(b) of the FDCPA, titled ‘Communication with third parties,’ with very limited exceptions, prohibits debt collectors from disclosing to third[ ]parties that a ‘consumer’ is obligated to pay a debt to a creditor communicated to third[ ]parties without consent of the consumer.”

When communicating with such third parties, the law says, the debt collector “shall … not state that such consumer owes any debt…” Midland’s transmission of consumer debtor information to its letter vendor thus constitutes a violation of the FDCPA and an invasion of Levine’s privacy.

The complaint alleges that Midland “violated Section 1692c(b) when it used a third-party vendor to mail the December 30, 2020 and February 10, 2021 Collection Letters to [Levine] because … [Midland] disclosed [Levine’s] personal contact information and information identifying the Subject Debt to [Midland’s] letter vendor.” This, the complaint alleges, violated Levine’s right to privacy.

The complaint also objects to certain markings on the envelopes for the debt collection letters.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Midland Credit Invasion of Debtor’s Privacy Texas FDCPA Complaint

June 5, 2021

The Fair Debt Collection Practices Act (FDCPA) regulates the actions of third-party debt collectors in trying to collect consumer debts. The FDCPA is meant, the law says, “to eliminate abusive debt collection practices by debt collectors” and to protect consumers from them. The complaint for this class action alleges that Midland Credit Management, Inc. has violated the FDCPA and the Texas Debt Collection Act (TDCA) by improperly revealing information about consumer debtors to third-party vendors.

Midland Credit Invasion of Debtor’s Privacy Texas FDCPA Complaint

Case Event History

Midland Credit Invasion of Debtor’s Privacy Texas FDCPA Complaint

June 5, 2021

The Fair Debt Collection Practices Act (FDCPA) regulates the actions of third-party debt collectors in trying to collect consumer debts. The FDCPA is meant, the law says, “to eliminate abusive debt collection practices by debt collectors” and to protect consumers from them. The complaint for this class action alleges that Midland Credit Management, Inc. has violated the FDCPA and the Texas Debt Collection Act (TDCA) by improperly revealing information about consumer debtors to third-party vendors.

Midland Credit Invasion of Debtor’s Privacy Texas FDCPA Complaint
Tags: FDCPA, Invasion of Privacy, Unlawful Debt Collection