October 3, 2019 / 10:36 PM / 2 months ago

IN BRIEF: Midland must show it bought arbitration rights, not just debt, judge rules

Midland Funding cannot force potential class-action plaintiffs to arbitrate their debt-collection claims because it has not yet established it has a valid and enforceable arbitration agreement, U.S. District Judge Katharine Hayden ruled Wednesday in Newark, New Jersey.

Shanthi Hejamadi and Ricardo Varela sued Midland last year under the Fair Debt Collection Practices Act, alleging that its dunning notices were intentionally misleading. Midland moved to dismiss the class action and compel individual arbitration based on provisions in the borrowers’ credit-card agreements with Citibank.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/31JRhGJ

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