Midland Funding

News & Analysis as of

Is Midland Funding Even Aware of the CFPB Consent Order?

A few weeks back I reported how the Consumer Financial Protection Bureau (“CFPB”) had sanctioned both Midland Funding and Portfolio Recovery Associates for their illegal debt collection tactics when it came to junk debt buyer...more

Alabama Bankruptcy Court Holds That Filing Proof of Claim for Time-Barred Debt Cannot Give Rise to FDCPA Claim or Sanctions

In Jenkins v. Midland Credit Management, Inc., the U.S. Bankruptcy Court for the Northern District of Alabama held that the filing of a proof of claim based on a time-barred debt cannot give rise to a claim for damages under...more

CFPB Cracks Down on Major Debt Collection Companies for Due Diligence and Deceptive Practices Infractions

Last week the Consumer Finance Protection Bureau (CFPB) took action against the nation's two largest debt collection companies for lack of due diligence when buying portfolios of debt, and deceptive practices in collecting on...more

Midland Funding and Portfolio Recovery Associates Slammed by Consumer Financial Protection Bureau

Today the Consumer Financial Protection Bureau (“CFPB”) took action against Midland Funding (and its parent company Encore Capital) and Portfolio Recovery Associates – the nation’s two largest junk debt buyers – for their...more

Can We Really Trust the Banks?

I have written previously on the bias that consumers face from courts and others when they challenge a creditor who is suing them on a debt. The source of this bias, in my opinion, is partially due to the trust that people...more

The Second Circuit Denies Midland’s Request For Rehearing On Its Decision That Upended Longstanding Principles of Lending Law

On August 12, 2015, the United States Court of Appeals for the Second Circuit denied Midland Funding, LLC and Midland Credit Management (collectively, “Midland”)’s petition for panel rehearing, or, in the alternative,...more

FDCPA Bona Fide Error Defense Held Applicable to Statute-of-Limitation Mistakes of Law

Following the Supreme Court’s ruling in Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA, 559 U.S. 573 (2010), it is clear that the bona fide error defense set forth in section 1692k(c) of the Fair Debt Collection...more

Orrick's Financial Industry Week in Review

5th Circuit Revives FDIC's Suit Against Goldman, Deutsche Bank, and Royal Bank of Scotland - On August 10, 2015, the Fifth Circuit revived a securities fraud suit brought by the Federal Deposit Insurance Corporation...more

Second Circuit Denies Request for Rehearing in Madden v. Midland Funding Case

In a case closely watched by the lending industry, on August 12, 2015, the U.S. Second Circuit Court of Appeals denied a request by Midland Funding, LLC (Midland Funding) to rehear a case decided in May (Madden v. Midland...more

Case Update: Madden v. Midland Funding

Despite the strong petition and amici briefs, the Second Circuit denied the request to rehear the Madden v. Midland Funding case. With the denial of the petition on August 12 (order attached), it is now clear that Madden is...more

Dealing with Judicial Bias in Debt Collection Cases

Recently I was attending a pretrial conference at one of the local justice courts here in Arizona in one of the cases I have against Midland Funding, LLC. This type of court hearing is quite short (less than 5 minutes) and...more

Special Alert: Second Circuit Will Not Rehear Madden Decision That Threatens to Upset Secondary Credit Markets

Two months ago we issued a Special Alert regarding the decision of the Court of Appeals for the Second Circuit in Madden v. Midland Funding, LLC, which held that a nonbank entity taking assignment of debts originated by a...more

Financial Services Weekly News - August 2015 #2

Regulatory Developments - SEC Revises 2014 Money Market Fund Reform FAQs: On Aug. 4, the SEC staff issued revised 2014 Money Market Fund Reform Frequently Asked Questions (FAQs), which were originally released...more

7 Reasons You May Win Your Debt Collection Lawsuit that have Nothing to Do With the Law

Often here on my blog I will discuss some of the more technical legal arguments that can help you win your case against junk debt buyers. However, in a surprisingly high number of cases you end up winning simply for showing...more

Maryland Appeals Court Declines to Adopt “Meaningful Attorney Involvement” Standard

The Maryland Court of Special Appeals recently declined to adopt the “meaningful attorney involvement” standard for Fair Debt Collection Practices Act (FDCPA) claims based on alleged insufficient attorney involvement in debt...more

Treasury Request for Public Input on Expanding Access to Credit through Online Marketplace Lending

On July 20, the Department of the Treasury published a Notice and Request for Information (“RFI”) seeking comment on various aspects of online marketplace lending, including – - the business models and products offered...more

Increased Risk for Buyers of Credit Card Loans

Third party debt buyers may face increased threat of state-law class action lawsuits after a recent Second Circuit ruling prohibiting such debt buyers from invoking federal preemption defenses under the National Bank Act to...more

Madden v. Midland Funding, LLC

On May 22, the Second Circuit Court of Appeals ruled that when a nonbank entity purchases loans from a national bank, the interest rate the nonbank entity may charge is limited to the rate of interest of the state of...more

Orrick's Financial Industry Week in Review

Federal Reserve Releases First Determination of Aggregate Consolidated Liabilities of all Financial Companies - On July 1, the Federal Reserve Board released its first determination of the aggregate consolidated...more

Valid at Inception Rule Shot Down by the Second Circuit

Marketplace lenders and investors that purchase interests in loans originated by banks should pay close attention as it could spawn a host of class action lawsuits if left standing. In a controversial opinion decided on...more

Second Circuit Decision Could Disrupt Secondary Market for Bank-Originated Loans

A May 22, 2015 decision by the U.S. Court of Appeals for the Second Circuit appears to disturb the generally settled body of law concerning the status of non-bank investors with respect to applicable usury laws for...more

Special Alert: Second Circuit Decision Threatens To Upset Secondary Credit Markets

The Second Circuit Court of Appeals’ recent decision in Madden v. Midland Funding, LLC held that a nonbank entity taking assignment of debts originated by a national bank is not entitled to protection under the National Bank...more

The Unknown World of Junk Debt Buying

This past weekend I attended a workshop in Seattle that was set up for consumer protection lawyers like myself who help people fight back against junk debt buyers like Midland Funding, Cavalry SPV, CACH, LLC (too name a few)....more

Second Circuit Holds Application of State Usury Laws to Third-Party Debt Purchasers Not Preempted by National Bank Act

On May 22, 2015, in Madden v. Midland Funding, LLC (“Madden”), the United States Court of Appeals for the Second Circuit held that the application of state usury laws to third-party assignees is not preempted by the National...more

Second Circuit Holds That National Bank Act Preemption Does Not Apply to an Independent, Third-Party Debt Collector That Purchased...

The Second Circuit recently issued a National Bank Act preemption decision with significant implications for purchasers of loans and other debt from national banks. See Madden v. Midland Funding, LLC, --- F.3d ---, 2015 WL...more

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