Texas consumer alleges Midland Credit Management is attempting to collect time-barred debts

By Jenie Mallari-Torres | Nov 28, 2018

HOUSTON (Legal Newsline) – A Houston consumer alleges a California debt collector is attempting to collect a time-barred debt.

Lizeth Padron filed a complaint individually and on behalf of all others similarly situated on Nov. 20 in the U.S. District Court for the Southern District of Texas against Midland Credit Management Inc., Midland Funding LLC and John Does 1-25 alleging violation of the Fair Debt Collection Practices Act.

According to the complaint, the plaintiff received a collection letter from Midland Credit Management, which was contracted by Midland Funding, in November 2017. The plaintiff claims the alleged debt is time barred and that the letter implies Midland has chosen not to sue when it cannot file a suit against her.

The plaintiff also alleges the letter outlined a settlement offer and failed to disclose that acceptance would restart the statute of limitations.

The plaintiff holds Midland Credit Management Inc., Midland Funding LLC and John Does 1-25 responsible because the defendants allegedly failed to advise that any payment made on the debt by plaintiff would restart the statute of limitations for bringing a lawsuit and used deceptive and misleading representations in their communication.

The plaintiff requests a trial by jury and seeks judgment against defendants, declaratory action, award statutory and actual damages, costs of action, attorneys' fees, expenses, interest and further relief as the court deems just. She is represented by Jonathan Kandelshein in Dallas.

U.S. District Court for the Southern District of Texas case number 4:18-cv-04407

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