law

Midland Funding LLC Class Action Lawsuit

A class action lawsuit is a legal case in which multiple plaintiffs try to sue together for the same injury or the same damages as a class. Class actions are often settled out of court through arbitration or through a trial. Midland Funding LLC is a defendant in this lawsuit. The case revolves around a debtor named Debra Hackett who owes money to Midland Funding through a home equity loan. Hackett was never given written notice of default by Midland Funding nor did she ever receive an offer in compromise from Midland Funding.

Midland Funding LLC Class Action Lawsuit

Plaintiff Deborah Hackett takes this action against defendant Midland Funding, claiming that Midland improperly charged her credit card account for an unpaid balance on an interest bearing account. Hackett further states that Midland did not deliver what it said it would; in essence, it did not make any contact with the debtor to notify her of its intention to collect the overdue debt at the previously agreed upon time frame. Upon learning of Hackett’s lawsuit, Midland filed its own legal action in an attempt to defend against Hackett’s complaint. This legal action ultimately wound up in the hands of a jury who decided that Hackett had a case against Midland and ordered it to pay her debt in full.

Midland Funding states that it will not be fighting back against the judgment in this class action lawsuit.

“Ms. Hackett has been given a very clear warning regarding her rights and obligations to the company, and that those rights and obligations do not extend to filing a lawsuit against Midland Funding LLC,” the company states in a statement. Hackett may be able to recoup some funds from the judgment, however; Midland Funding can only afford to lose the suit entirely. Midland Funding could lose this case and further damage already existing financial problems for Hackett and her family. Midland Funding also states that it will continue to work diligently to make sure consumers are held accountable for their financial debts.

hackett’s attorney defendants maintain that they only acted in accordance with the law.

“Ms. Hackett has provided full and truthful information to the court, which is supposed to be factually true and accurate,” said one of Hackett’s attorney defendants, Paul S. Gerspach. “Ms. Hackett has provided a history of accurate and timely payment of bills, along with providing proof of current income and insurance coverage.” Hackett’s attorney did not respond to requests for comment on whether she would pursue other possible avenues of pursuing damages against the default judgment companies.

The sale of Midland Funding LLC was originally done in compliance with local and federal regulations regarding the sale of such companies.

According to these regulations, the sale was limited to ensure the fair distribution of proceeds from the sale to creditors who would benefit from the debt lawsuit. The sale of Midland Funding LLC triggered questions and concerns about the validity of Midland Funding’s debt collection practices.

The class action lawsuit is scheduled to begin trial in the fall of 2021.

If the trial moves too quickly, there is the risk that the defense will seek to settle the case without going to trial. If Midland Funding goes to trial, the case may be lost. However, the debtors have the option of being awarded a substantial amount in damages. In addition, the outcome of the class action lawsuit against Midland Funding LLC could impact the debtors’ ability to obtain any future credit or debt relief from other sources.

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