Judge Approves Counterclaim against Midland Funding for Deceptive Practices

by San Antonio Attorney

Debt buyer Midland Funding faces a consumer’s claim that it is involved in misleading practices at the time of litigation in order to collect debt payments, according to a judge’s ruling.

For the first time ever, a New York state court had allowed a consumer to file a counterclaim against a debt buyer in accordance to the state’s General Business Law.

Adriana Giraldo was sued by Midland Funding in 2012 to collect a contested $12,553 credit card debt that the company bought in 2011 along with many other accounts. A counterclaim was filed by Giraldo alleging Midland had violated the law. She claimed that the lawsuit was brought against her without evidence that she incurred the debt and that Midland was trying to trick her into paying the debt.

Midland filed a motion to dismiss the counterclaim, saying that statute could be applied to misleading business practices, not in lawsuits. But in March 22 the court ruled that Giraldo had position to file the counterclaim.

The judge said that there is no reason why Midland should be considered sheltered from liability under the statute mainly because its misleading actions is in the context of seeking civil litigation.

Since 2006, Midland has filed over 20,000 lawsuits in Nassau District Court, averaging about 3,000 annually in the past 6 years, based on the ruling.

Giraldo’s attorney, Jesse Langel, declared that the ruling shows a potential gateway of legal option for people who believe they were exploited by the credit card debt collection industry.

Langel said debt buyers, litigating attorneys, or other debt collectors have no immunity to make deceitful representations in litigation.

Scrutiny of the debt buying industry has heated up recently. Some of the biggest banks in the country are being investigated into whether they assisted debt collectors to go after defective judgments against consumers.

 

If you are being hounded by a credit card debt buyer or facing a lawsuit, defend yourself to avoid a judgment. It is in your best interests to contact a San Antonio Attorney to get help if you are being sued by a debt buying company.

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