Midland Credit Agrees to $995,000 to End Collection Letters Suit

Midland Credit Management agreed to pay $995,000 to resolve claims that it violated the Fair Debt Collection Practices Act and West Virginia law when it sent collection letters for old debts without disclosing to recipients that the statute of limitations had run.

If approved, the settlement would provide for a recovery of $807 per letter, before pro rata deductions for attorneys’ fees, costs, and any service awards, the motion filed on Wednesday in the U.S. District Court for the Southern District of West Virginia said.

The motion argues the recovery would be significant “relative to the maximum potential statutory recovery ...