Midland Credit Management Improper Income Execution New York Class Action

When a company obtains a judgement against a consumer debtor, it may in some cases ask for an income execution—that is, it may request that the individual’s wages be garnished to pay off the debt. This class action brings suit against Midland Funding, LLC, Midland Credit Management, Inc., and lawful Selip & Stylianou, LLP for improper income executions.

Midland Funding is a major buyer of consumer debt. It uses related company Midland Credit Management to perform collection duties on its behalf.

Plaintiff Jessica Morrison allegedly owed a credit card debt incurred for personal, family, or household purposes. Sometime around November 14, 2019, Midland Funding filed a lawsuit against her to try to collect it. Selip & Stylianou handled the legal proceedings.

On January 27, 2020, a default judgment was entered against Morrison. After that, Midland asked the court for an income execution.

The document claimed Morrison’s income was “more than $354 per week.” The complaint claims that this statement was false and that her disposable weekly income (that is, what the law specifies her payments must be based on) was less than $215 per week. This is less than thirty times the minimum wage of $7.25 an hour. Wages this low cannot be garnished.

In addition to the incorrect amount of pay, the document also did not set forth the frequency of payments to Morrison or the exact amount of monetary payment that would be due. All three items are supposed to be included in the income execution.

The complaint alleges that if the information had been properly entered, the calculated payment required under the law would have been $0. Because the companies do not include correct information in the income execution, the complaint says, they expose consumers to inaccurate calculations and does not allow them to avoid expenses for sheriffs’ or enforcement officers’ levies for performing collections. The law requires that the individuals have the opportunity to pay the installments due directly before their employers are brought into the case.

The complaint alleges that the companies violated the Fair Debt Collection Practices Act (FDCPA) and the New York Civil Practice Law and Rules (CPLR), among other things.

Two classes have been proposed for this action.

  • The Midland Class is (a) all individuals (b) sued in a New York state court by Midland Funding or Midland Credit Management (c) where an Additional Notice of Consumer Credit Action was filed and (d) against whom an income execution order was issued that did not set forth the real amount of income received from the individual’s employer, the real frequency of payments by the employer, or the calculated amount of installments expected to be paid to the enforcement officer.
  • The Selip Class is the same except that item (b) is “sued in a New York state court by Selip (representing anyone)…”
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Midland Credit Management Improper Income Execution New York Class Action

July 7, 2020

When a company obtains a judgement against a consumer debtor, it may in some cases ask for an income execution—that is, it may request that the individual’s wages be garnished to pay off the debt. This class action brings suit against Midland Funding, LLC, Midland Credit Management, Inc., and lawful Selip & Stylianou, LLP for improper income executions.

Midland Credit Management Improper Income Execution New York Class Action

Case Event History

Midland Credit Management Improper Income Execution New York Class Action

July 7, 2020

When a company obtains a judgement against a consumer debtor, it may in some cases ask for an income execution—that is, it may request that the individual’s wages be garnished to pay off the debt. This class action brings suit against Midland Funding, LLC, Midland Credit Management, Inc., and lawful Selip & Stylianou, LLP for improper income executions.

Midland Credit Management Improper Income Execution New York Class Action
Tags: FDCPA, Income Execution (Garnishment), Unlawful Debt Collection