Rutledge Reaches Settlement with Debt-Collection Company
December 5, 2018
Arkansans to receive more than $410,000 in debt relief
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced that Arkansas has joined 42 other states and the District of Columbia in an agreement to settle illegal debt-collection practice accusations against Midland Funding.
“I want companies like Midland to think twice before using these tactics in Arkansas,” said Attorney General Rutledge. “This settlement will make Arkansans whole after Midland violated both Arkansas and federal law through its deceptive practices.”
Between 2003 and 2009, Midland engaged in various debt-collection activities that harmed Arkansans, such as filing false affidavits in court proceedings, failing to verify debts as requested by consumers, attempting to collect debts that are legally unenforceable and signing affidavits of debts owed without reviewing the account. The settlement affirms that Midland is required to follow all Arkansas and federal debt-collection laws.
As part of the settlement, Midland will eliminate or reduce the judgment balances of more than 300 Arkansans, totaling about $410,000, in cases where Midland used an affidavit against them in court between 2003 and 2009. Midland will notify impacted consumers by mail of the balance reduction and no further action is necessary from the consumer. In addition, Midland will set aside $25,000 per state to compensate consumers who may have paid Midland money they did not owe.