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Midland Funding case dismissal and court announcement
As part of a class action settlement, the Maryland District Court has dismissed, without prejudice, over 10,000 debt collection cases filed by Midland Funding. The dismissals cover cases that were filed by Midland between Jan. 15, 2007 and Jan. 15, 2010, where no judgment or settlement was entered in the case. As part of the settlement, Midland has agreed not to re-file the cases or to sell the debts to a 3rd party. However, Midland does have the right to continue to try to collect on the debts by writing or calling the debtor. Any clients who have debts with Midland and are part of the class should be advised that if Midland contacts them to try to collect the debt, they can send a “Do Not Contact” letter to Midland requesting that it cease collection efforts. You may also want to provide the client with a copy of Legal Aid’s Debt Collection: Protect Yourself From Harassment brochure.
For additional information about the settlement, see the press release from the District Court below, and the Settlement Agreement attached.
OFFICE OF COMMUNICATIONS AND PUBLIC AFFAIRS
2011-D Commerce Park Drive
Annapolis, Maryland 21401
For Immediate Release CONTACT: Angelita Plemmer Terri Bolling
Thousands of District Court of Maryland Cases Dismissed
(ANNAPOLIS, Md. – March 17, 2011) Chief Judge Ben C. Clyburn, District Court of Maryland, today signed a motion to dismiss 10,168 debt collection cases against Maryland residents. The mass dismissals are required by the terms of a settlement of a class action lawsuit against Midland Funding in U.S. District Court.
The dismissals include cases against Maryland residents who have been sued in Maryland District Court between Jan. 15, 2007 and Jan. 15, 2010 by Midland Funding to collect debts. The cases are being dismissed because Midland Funding was not then licensed as a debt collection agency by the Maryland Department of Licensing and Labor Regulation (DLLR).
Defendants whose cases have been dismissed will receive written notification from the District Court of Maryland. To get more information, Maryland residents should contact the local District Court location where the debt collection case was filed. In addition to sending written notices to the people affected by this settlement, the District Court is directing that court records and the Judiciary Case Search public records website be updated to show the dismissals.
In 2010, Judge Clyburn dismissed more than 27,000 debt collection cases without prejudice against Marylanders when the law firm Mann Bracken LLP dissolved. Midland Funding is a former client of Mann Bracken LLP.
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