I’ve been working on my responses to the Midland and Equifax motions for summary judgment. One of my FCRA claims revolves around the Midland verifications of incorrect balances with Equifax.
Midland had sued me in justice court and I realized that Midland charged interest from the date of chargeoff — NOT from the date it purchased the account. In justice court, Midland decided to not seek any interest in its motion for summary judgment to avoid further investigation of its practice to charge illegal interest.
When I sued Midland after its lawsuit was dismissed (expired SOL), Midland provided NO documents at all in response to my discovery requests. After several failed attempts to get them to cooperate with filing a joint discovery motion, they finally provided me with documents on the evening before the doomed settlement conference.
From the 8/18/2014 MCM Supplemental Responses to my Request for Production of Documents, Document # 4, Account #1:
Purch. from HSBC BANK NEVADA, N. A. on 1/26/10, purch. bal. = $2,260.41
Charge-Off Date: 12/31/2008
Charge-Off Balance: 2,260.41
Interest Method: Interest accrued from charge-off date
As per Arizona state law creditors can charge 10% interest. Obviously, a creditor can NOT charge interest PRIOR to its purchase of an account. And that’s exactly what Midland is doing.
Midland charged 10% interest for over two years – while it did NOT own the account!
HSBC was one of the credit card issuers who did not charge interest after an account was charged off (unlike Capital One, which purchased the HSBC credit card portfolio).
In 2003 I sued Capital One and the credit bureaus because they refused to report the Cap One credit limits and this practice could significantly lower FICO scores. Due to my relentless publication and litigation, several class actions were filed and finally all credit bureaus reported the Cap One credit limits around 2007. I sure hope it won’t take several years for Midland to be sued into oblivion!
ALL Midland judgments that include these fraudulent interest charges should be vacated and all collection accounts should be cancelled.
And of course all consumers who PAID these fraudulent interest charges deserve compensation.