September 24, 2018/Philadelphia, PA
U.S. Court of Appeals precedential ruling impacts consumers nationwide
In an important ruling this week, the United States Court of Appeals for the Third Circuit in Philadelphia, PA agreed with Flitter Milz that a collection dun sent to a consumer was deceptive and in violation of the federal law regulating debt collectors.
Midland Credit Management, one of the largest debt-buyers and debt collectors in the United States, sent our client a collection notice stating Midland would “report forgiveness of debt as required by IRS regulations.” Flitter Milz argued that the debt involved was so small that there is nothing ever to report to the IRS, and the statement about Internal Revenue was just a scare tactic.
The federal appeals court, sitting in Philadelphia, agreed that the consumer might be persuaded into thinking that a settlement may be reportable to the IRS, and this remark is misleading under the consumer laws. The Court agreed with Flitter Milz, holding that “it is not merely the inclusion of a lie, but also incomplete” language in a collection letter that may violate the consumer laws. The Court has told Midland that ‘half-truths’ to consumers are not good enough.
Flitter Milz is a nationally recognized consumer protection law firm representing consumers in matters against collection agencies and collection law firms for violation of the Fair Debt Collection Practices Act. “This victory, is not just for our client and firm, but for consumers across the U.S.”, said Cary Flitter and Andy Milz.
To learn more about this case, Robert A. Schultz, Jr & Donna Schultz v Midland Credit Management, click here . Consumers with questions about collection contact, calls or letters, from Midland Credit Management, contact us.
Midland Credit Management is a billion dollar purchaser of consumer debt, who collects and files collection lawsuits in Pennsylvania, New Jersey, New York and across the country.