Midland Credit Management Inc. lost its bid to send a consumer debt collection practices class action to arbitration March 22.
The debt collector bought the plaintiffs’ credit card account but provided no evidence that it also bought the right to arbitrate disputes about the account, Judge Mark A. Kearney wrote for the U.S. District Court for the Eastern District of Pennsylvania.
“Midland needs to show us what it purchased. As of today, it has not done so,” the court said. It extended discovery “to allow the parties to explore this issue which presently appears, at best, to be ambiguous.”