Wonita Archer v. Midland Credit Management, Inc.

Tyler, Texas consumer credit Fair Debt Collection Act violation lawyer represented the Plaintiff.

This case dips us briefly into the vast pool of credit card debt collection efforts within the broader debt collection industry. Here's how it works. When a credit card company gives up on collecting an individual account in default (leading it to "charge-off" the debt), it bundles lots of individual accounts together and sells the bundle to a debt collection entity (otherwise known as the debt buyer). Peter A. Holland, The One Hundred Billion Dollar Problem in Small Claims Court: Robo-Signing and Lack of Proof in Debt Buyer Cases, 6 J. Bus. & Tech. L. 259, 264-65 (2011). Buying such bundles of individual consumer debt is a massive and lucrative industry; in 2016, the participating corporate entities disclosed revenue of over $13 billion. Midland Funding, LLC v. Johnson, ––– U.S. ––––, 137 S. Ct. 1407, 1416, 197 L.Ed.2d 790 (2017) (Sotomayor, J., dissenting) (citing Consumer Financial Protection Bur., Fair Debt Collection Practices Act: Annual Report 2016, at 8). Some of this revenue is earned by winning default judgments in state small claims courts, where corporate entities who have bought consumer debt often win their gamble that individual consumers will not appear in court to defend against a debt collection action to the tune of "billions of dollars." Id. at 1417 (quoting Holland, supra, at 263 ).

Settled and Dismissed with prejudice.