Midland Credit Management (MCM), a large debt buyer, frequently uses lawsuits as a way to collect unpaid debts from Texas consumers. The sheer volume of cases makes it a notable legal trend within the state. Texans struggling with delinquent debts need to be aware of MCM’s tactics, while understanding the legal avenues available for fighting back.
Understanding Debt Buyers
Companies like Midland Credit Management don’t originate debts. They acquire outstanding debts like unpaid credit cards, medical bills, and personal loans at drastically reduced prices from the original lenders. Their profit rests on their ability to collect the full original amount owed even though they paid pennies on the dollar. Aggressive collection tactics, including litigation, are common.
A Spotlight on Midland Lawsuits in Texas
Midland Credit Management files thousands of lawsuits across Texas annually. Here’s a snapshot of cases with varying circumstances:
| Complete Date | Case | Short Summary |
|---|---|---|
| Feb 2022 | Midland v. Rodriguez | MCM sues for defaulted credit card debt. Rodriguez counter-sues, alleging improper service of process and debt collection violations. |
| June 2022 | Midland v. Johnson | MCM wins default judgment due to Johnson not responding to the lawsuit. A wage garnishment is pursued. |
| Nov 2023 | (Class Action) Lopez et al. v. Midland | Lawsuit challenges MCM’s “robo-signing” practices involving sworn affidavits used as evidence during court cases. The lawsuit seeks statutory damages under the FDCPA. |
Frequent Issues Underpinning These Lawsuits
Several recurring themes emerge in Midland’s Texas lawsuits:
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Disputed Debts: Consumers may believe the debt itself is invalid, such as in potential identity theft cases, or the statute of limitations for pursuing collections might have expired.
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Insufficient Documentation: Debt buyers occasionally struggle to produce the original loan agreements or complete billing statements to prove they own the debt and thus have the right to sue.
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“Robo-signing” Controversies: Accusations arise that MCM employees signed bulk legal affidavits without reviewing individual cases, leading to inaccuracies and false declarations to the court.
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Aggressive Wage Garnishment: When Midland obtains default judgments, wage garnishment often follows, creating economic distress for struggling Texans.
How Texas Consumers Can Respond
Taking decisive action is vital when facing a Midland lawsuit:
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Do Not Ignore It: Ignoring the lawsuit almost guarantees a default judgment that Midland can vigorously enforce through wage garnishment, asset seizure, etc.
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Seek Legal Help: Attorneys specializing in debt defense in Texas can analyze the case, identify potential violations, and advise if you have grounds to fight the lawsuit.
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Assert Your Rights: Texas and federal law offer certain protections to debtors. Understand what collection activities are impermissible, such as harassment or calls while at work.
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Statute of Limitations: In Texas, this is usually four years for unpaid debts. Exploring whether the debt has “aged out” can be a viable defense, but the rules in this arena are complex.
The Bigger Picture
Midland Credit Management’s widespread litigation activity highlights larger trends:
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Rise of Debt Buying: This industry has exploded in recent decades, impacting how overdue debts are collected and raising concerns about potential abuses.
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Texas Legal Environment: The state’s debtor-friendly laws are evolving, and legal action has forced debt buyers to re-evaluate some of their practices.
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Consumer Knowledge: The more Texans understand their rights and are proactive in fighting back against abusive debt collection practices, the more accountable companies like Midland will have to become.
Disclaimer This article offers an overview, not legal advice. Contact a qualified Texas attorney for a personalized analysis of your situation if facing a Midland lawsuit.
