Midland Credit Management Debt Collection Class Action Settlement

Individuals in California who received a initial written communication from Midland Credit Management that did not include the true name of the debt buyer and was printed in less than 12-point type, may be eligible to receive a cash payment from a class action settlement. The settlement class includes 36,635 people with a charged-off consumer debt originally owed to Capital One.

Midland Credit Management Inc. has agreed to pay at least $318,000 to settle a class action lawsuit alleging violations of California’s Fair Debt Buying Practices Act. The plaintiff claimed that Midland sent initial debt collection letters that failed to provide the true name of the debt buyer and used a font size smaller than required by law.

Who is eligible for a debt collection settlement payout?

Class members must meet the following criteria:

• They have a California address and received an initial written communication from Midland Credit Management Inc. in the form of Exhibits “1” and “2” to the First Amended Class Action Complaint.
• The letter was an attempt to collect a charged-off consumer debt originally owed to Capital One Bank (USA) N.A.
• The debt was sold or resold to Midland Credit Management Inc. on or after Jan. 1, 2014.
• The letter was not returned as undeliverable by the U.S. Post Office.
• The letter was sent between Sept. 12, 2018, and Aug. 22, 2022.

How much is the class action settlement payment?

Pro rata cash payment: Class members who do not opt out of the settlement will receive an equal cash payment from the $318,000 class recovery fund. Final payment amount will be determined by the total number of participating class members.

Example Calculation

If all 36,635 class members participate, the calculation is as follows:

• $318,000 estimated class recovery fund ÷ 36,635 class members = $8.68 per person

If fewer class members participate, for example, if 30,000 people remain after opt-outs, the payment per person would increase:

• $318,000 ÷ 30,000 = $10.60 per person

No claim form required

Class members do not need to file a claim to receive a settlement payment. Class members request a preferred payment method on the settlement website using the CPT ID and Passcode from their settlement notice.

Payout options (how the class members can get paid)

• Digital payment, if preferred payment method is submitted online
• Paper check, mailed to the address on file

Settlement fund breakdown

The settlement fund includes:

• Settlement administration costs: Estimated at $87,000
• Attorneys’ fees and expenses: Up to $260,000
• Service award to class representative: Up to $6,000
• Payments to eligible class members: $318,000

Important dates

• Deadline to opt out of the settlement: April 24, 2026
• Final fairness approval hearing: July 23, 2026

When is the Midland Credit Management settlement payout date?

Payments will be issued to eligible class members after the court grants final approval and processing is completed.

Why was there a class action settlement?

The class action lawsuit alleged that Midland Credit Management violated California’s Fair Debt Buying Practices Act by sending initial Capital One debt collection letters to consumers that did not provide the true name of the debt buyer and were printed in less than 12-point type. Midland denies the allegations but agreed to settle to avoid the expense and uncertainty of further litigation and a possible trial.

Sources

1. Settlement website
2. Settlement agreement and notice
3. First amended class action complaint with exhibits 1 and 2