May 14, 2019 / 9:21 PM / 12 days ago

Midland cannot force arbitration of debt collection lawsuit - ruling

A federal judge has rejected a bid by Midland Credit Management to compel arbitration of a lawsuit accusing it of misleading New Jersey borrowers by suggesting in collection letters that they may owe federal taxes if part of their debt is canceled.

In a decision on Monday, U.S. District Judge Jose Linares in Newark said the existence of an enforceable arbitration agreement is not apparent based on the lawsuit, and more discovery will have to be taken before he can decide whether such agreement was formed.

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