Fighting credit bureaus, creditors and debt buyers

Category Archives: Midland fraudulent interest charges

My 5/11/16 opening brief re. my Midland, Equifax and Bursey & Associates appeal

I’m sorry I haven’t posted in so long, but I’ve been extremely busy.

Last September the Phoenix district court dismissed ALL my claims against Equifax and Midland Funding / MCM.

I appealed and last night I filed my informal opening brief:

5-11-16–doc-12-Opening-Brief

After two weeks of doing not much else but read the orders and filings and doing a ton of research, my brain is fried and I have to attend to the gardens for a few days.

However, having to relive how I got railroaded in kangaroo court motivated me very much to update and post here again.

It’s incredibly that Equifax stepped up to defend Midland / MCM to get an obviously unjust dismissal.

The lies, the deceit … it’s so hard to find justice in the courts because the judges ACTIVELY  encourage the most deplorable practices such as Midland claiming that I failed to respond to their motion for judgment on the pleading re. my FDCPA claims when I had in fact THREE more days to reply.  Judge Campbell couldn’t have cared less …

My case was reassigned to judge Logan and he refused to extend the discovery deadlines even though none of the defendants objected (I attached their emails).

I NEVER got to see the Equifax initial disclosures and had LESS than 3 months from the Equifax and Midland/MCM answers to my amended complaint until discovery closed.

It’s so unfortunate that ALL we can do is appeal.  I ran across several FDCPA and FCRA cases in Arizona and it’s depressing to read those rulings.

A key issue with Midland / MCM is that they charged interest PRIOR to its ownership of the accounts.

When they sued me in justice court, I argued that it was an FDCPA violation to charge “pre-ownership” interest for my HSBC accounts (HSBC did not add interest to the accounts after they charged off).   So they “waived” all “prejudgment” interest in their motion for summary judgment to get a dismissal of my FDCPA claims.

Then they continued to report this “waived” interest to the credit bureaus and verified after my disputes in 2013 AFTER I sued them!  The nerve …

Most people with credit cards have received credits for late fees, over limit fees and interest due to whatever issues.  Imagine the uproar if the banks later ADDED these charges again!

If anyone has relevant case law regarding such a situation, please let me know!

Midland Funding interest fraud documented

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:

MCM-SupplResponse-Production-doc-4-acct1-pub-web

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.