Midland Funding LLC garnished my wages even though they knew I was the wrong person

[ja82]

What is the name of your state (only U.S. law)? New York

I would like to know if I have the ability and/or if I should pursue a lawsuit against Midland Funding LLC for garnishing my wages, when they knew (or should have known) I was not the debtor.

I noticed a garnishment on my pay statement last week so I immediately asked my HR department what it was about. They handed me a copy of an order from Erie County, NY that I was to pay $318+ until a $2,500+ debt was settled from 2013 for Midland Funding LLC.

Since this was the first time I had ever heard of them or this debt I called Midland and tried to get more info. After nearly an hour on the phone, 5 diff departments, and providing them with all my personal info and the info on the order, nobody could find any information on me or my supposed debt/account. Finally I spoke with a "manager" at Midland who told me that since they can't find me to have my HR dept. call them to "take care of it".

Incredibly embarrassed and distressed at this point, I did just that. Within a few minutes my HR department informed me that it was "taken care of" and I didn't have to do anything else. They didn't provide any further detail. Still panicked about the situation and the $300+ I'm out for the next few weeks I pulled my credit report but found nothing, crystal clear.

Determined to get to the bottom of it I called my father, since he and I share the same name minus the fact that I'm a Jr. I asked him if he had dealings with Midland and in-fact he did, he had been in dispute with them on the debt. He had received the order when it originated and immediately noticed that my information (in particular the name and address of my work) had somehow made it on the document and his account. Knowing they would likely attempt to garnish my wages or contact me at my place of business, he called them the following morning to correct the error (of which he has proof of doing). The representative told him it was taken care of and that my information would be removed from his account. He took them at their word but it's obvious they blatantly disregarded his correspondence or as a result of negligence proceeded with the wrong information and wrong person.

At this point my name and it's correlation to my place of employment has been dragged across two county courts, my reputation feels jeopardized and slandered at the small place of business I pursue my professional career, I'm out the $300+ this pay period (which will inevitably impact my ability to pay my bills and buy my kids supplies they need to start the school year), and lastly has cost me a significant amount of stress and time to correct.

I'm infuriated Midland would still move forward knowingly (or at minimum has no excuse to not know) garnish the wages of a person with a similar name that happens to live in the same county as the debtor. They shouldn't be able to get away with something this serious and I want to see them pay for it. Do i have the right to pursue a lawsuit for damages? What are my options if so?

 

[LdiJ]

What is the name of your state (only U.S. law)? New York

I would like to know if I have the ability and/or if I should pursue a lawsuit against Midland Funding LLC for garnishing my wages, when they knew (or should have known) I was not the debtor.

I noticed a garnishment on my pay statement last week so I immediately asked my HR department what it was about. They handed me a copy of an order from Erie County, NY that I was to pay $318+ until a $2,500+ debt was settled from 2013 for Midland Funding LLC.

Since this was the first time I had ever heard of them or this debt I called Midland and tried to get more info. After nearly an hour on the phone, 5 diff departments, and providing them with all my personal info and the info on the order, nobody could find any information on me or my supposed debt/account. Finally I spoke with a "manager" at Midland who told me that since they can't find me to have my HR dept. call them to "take care of it".

Incredibly embarrassed and distressed at this point, I did just that. Within a few minutes my HR department informed me that it was "taken care of" and I didn't have to do anything else. They didn't provide any further detail. Still panicked about the situation and the $300+ I'm out for the next few weeks I pulled my credit report but found nothing, crystal clear.

Determined to get to the bottom of it I called my father, since he and I share the same name minus the fact that I'm a Jr. I asked him if he had dealings with Midland and in-fact he did, he had been in dispute with them on the debt. He had received the order when it originated and immediately noticed that my information (in particular the name and address of my work) had somehow made it on the document and his account. Knowing they would likely attempt to garnish my wages or contact me at my place of business, he called them the following morning to correct the error (of which he has proof of doing). The representative told him it was taken care of and that my information would be removed from his account. He took them at their word but it's obvious they blatantly disregarded his correspondence or as a result of negligence proceeded with the wrong information and wrong person.

At this point my name and it's correlation to my place of employment has been dragged across two county courts, my reputation feels jeopardized and slandered at the small place of business I pursue my professional career, I'm out the $300+ this pay period (which will inevitably impact my ability to pay my bills and buy my kids supplies they need to start the school year), and lastly has cost me a significant amount of stress and time to correct.

I'm infuriated Midland would still move forward knowingly (or at minimum has no excuse to not know) garnish the wages of a person with a similar name that happens to live in the same county as the debtor. They shouldn't be able to get away with something this serious and I want to see them pay for it. Do i have the right to pursue a lawsuit for damages? What are my options if so?

You could certainly attempt a small claims suit. I would if I were in your shoes, if only for the principal of the matter.

 

[adjusterjack]

Disagree.

I don't see where you have any grounds for a lawsuit against Midland because you did not take the proper steps to address the garnishment.

The proper steps would have been to immediately go to the court that issued the garnishment order and file a motion to quash the garnishment and get the court to order the return of your money.

You can still do that.

If you don't, you have nowhere to go with this.

 

[ja82]

Disagree.

I don't see where you have any grounds for a lawsuit against Midland because you did not take the proper steps to address the garnishment.

The proper steps would have been to immediately go to the court that issued the garnishment order and file a motion to quash the garnishment and get the court to order the return of your money.

You can still do that.

If you don't, you have nowhere to go with this.

I never received anything from anyone. Noticing the garnishment on my paycheck was the first indication I had of anything. It was addressed immediately after being made aware by calling Midland. They told me to have my HR department call them. Midland would not confirm or deny anything with me (they couldn't find any info on it supposedly), but they must have confirmed to my HR department that is was not me because I'm getting reimbursed next pay period supposedly. I also asked my HR department if I should contact the county court and they assured me that I didn't have to, they claimed they would be sending a letter and it would all be cleared up. Part of why I'm reaching out here is my uncertainty in that claim and for whom should be held responsible, and to what degree.

In addition, I understood this order to be against my father, that's why I never received any information on it. However, at some point Midland or their attorney added my place of employment to it. The thing that really puts me off is that my father was in communication with Midland when this error occurred and Midland claimed to have corrected, I'm told there is proof of this communication by my father.

There is a point of failure somewhere in their process or worse, my father is on disability so cannot be garnished (supposedly/don't really care) so someone thought it a better chance to collect from someone with paycheck (a speculative rant I know).

Thanks for the advice on how to move forward either pursuing legal representation or at minimum ensuring this won't come back to bite me.

 

[latigo]

If you intend to pursue a legal remedy what you MUST do is to shop for an aggressive and successful New York trial lawyer regarding filing a tort action against Midland for malicious prosecution.

It is clear from your posting that Midland knowingly lacked probable cause to file the civil lawsuit against you, which "could" subject them to exemplar or punitive damages.

However, I chose the word "could" advisedly. Because (and quoting/editing from an article on the subject) "the application of punitive damages in the New York state court system is not uniform. Some courts have held that the conduct complained of must result in a harm to the public. Others that it must be of an "egregious" nature ", whatever that means".

BUT here's the deal. The only way you are going to put a real hurt on Midland is by receiving an award of punitive damages. Otherwise you will be limited to proving actual damages which (unless you could prove that you lost some financial opportunity because of the damage to your credit) are entirely subjective (as in not ostensible) and very, very difficult to prove.

Also, you may experience difficulty in finding a qualified attorney willing to take on the case without something big up front.

 

[quincy]

What is the name of your state (only U.S. law)? New York

I would like to know if I have the ability and/or if I should pursue a lawsuit against Midland Funding LLC for garnishing my wages, when they knew (or should have known) I was not the debtor.

I noticed a garnishment on my pay statement last week so I immediately asked my HR department what it was about. They handed me a copy of an order from Erie County, NY that I was to pay $318+ until a $2,500+ debt was settled from 2013 for Midland Funding LLC.

Since this was the first time I had ever heard of them or this debt I called Midland and tried to get more info. After nearly an hour on the phone, 5 diff departments, and providing them with all my personal info and the info on the order, nobody could find any information on me or my supposed debt/account. Finally I spoke with a "manager" at Midland who told me that since they can't find me to have my HR dept. call them to "take care of it".

Incredibly embarrassed and distressed at this point, I did just that. Within a few minutes my HR department informed me that it was "taken care of" and I didn't have to do anything else. They didn't provide any further detail. Still panicked about the situation and the $300+ I'm out for the next few weeks I pulled my credit report but found nothing, crystal clear.

Determined to get to the bottom of it I called my father, since he and I share the same name minus the fact that I'm a Jr. I asked him if he had dealings with Midland and in-fact he did, he had been in dispute with them on the debt. He had received the order when it originated and immediately noticed that my information (in particular the name and address of my work) had somehow made it on the document and his account. Knowing they would likely attempt to garnish my wages or contact me at my place of business, he called them the following morning to correct the error (of which he has proof of doing). The representative told him it was taken care of and that my information would be removed from his account. He took them at their word but it's obvious they blatantly disregarded his correspondence or as a result of negligence proceeded with the wrong information and wrong person.

At this point my name and it's correlation to my place of employment has been dragged across two county courts, my reputation feels jeopardized and slandered at the small place of business I pursue my professional career, I'm out the $300+ this pay period (which will inevitably impact my ability to pay my bills and buy my kids supplies they need to start the school year), and lastly has cost me a significant amount of stress and time to correct.

I'm infuriated Midland would still move forward knowingly (or at minimum has no excuse to not know) garnish the wages of a person with a similar name that happens to live in the same county as the debtor. They shouldn't be able to get away with something this serious and I want to see them pay for it. Do i have the right to pursue a lawsuit for damages? What are my options if so?

I agree with latigo that you (and possibly your father) should speak with an attorney in New York to go over the facts of the garnishment of your wages. You could have a suit worth pursuing.

New York's Attorney General is only one of several Attorneys General throughout the country who has sued Encore Capital Group (of which Midland is a unit) over its practices - resulting in $675,000 in penalties and 4500 court judgments vacated.

Here is a link to the Consent Order: http://www1.nyc.gov/assets/dca/downloads/pdf/about/sa_Midland.pdf

 

[ja82]

If you intend to pursue a legal remedy what you MUST do is to shop for an aggressive and successful New York trial lawyer regarding filing a tort action against Midland for malicious prosecution.

Thank you for the insight and help with the nomenclature latigo.

 

[latigo]

Disagree.

I don't see where you have any grounds for a lawsuit against Midland because you did not take the proper steps to address the garnishment.

The proper steps would have been to immediately go to the court that issued the garnishment order and file a motion to quash the garnishment and get the court to order the return of your money.

You can still do that.

If you don't, you have nowhere to go with this.

Aren't you overlooking (among other things) the fact that the judgment preceded the garnishment; a money judgment that was issued against the poster without the presence of due process of law?! You know, like being served with process and given the opportunity to respond to Midland's complaint by filing a "Motion to Dismiss for Improper Party Defendant".

And that it is the judgment, not necessarily the incidental garnishment process, that has damaged his credit status? And that quashing the writ of garnishment would have negative effect upon the judgment itself?

 

[quincy]

One additional link, this to the settlement: http://www.hollandlawfirm.com/wp-content/uploads/Encore-NY-AG-Settlement.pdf

 

[adjusterjack]

Aren't you overlooking (among other things) the fact that the judgment preceded the garnishment; a money judgment that was issued against the poster without the presence of due process of law?! You know, like being served with process and given the opportunity to respond to Midland's complaint by filing a "Motion to Dismiss for Improper Party Defendant".

Didn't overlook that at all.

The judgment wasn't against John Doe Jr, it was against John Doe.

Garnishing John Doe Jr was an error that could be quickly corrected by quashing the garnishment.

John Doe Jr has nothing to do with the judgment and therefore has no reason or grounds to address it.

And that it is the judgment, not necessarily the incidental garnishment process, that has damaged his credit status?

Did you miss this part of Junior's post?

"I pulled my credit report but found nothing, crystal clear."

 

[quincy]

Didn't overlook that at all.

The judgment wasn't against John Doe Jr, it was against John Doe.

Garnishing John Doe Jr was an error that could be quickly corrected by quashing the garnishment.

John Doe Jr has nothing to do with the judgment and therefore has no reason or grounds to address it.



Did you miss this part of Junior's post?

"I pulled my credit report but found nothing, crystal clear."

Both ja82 and his father should seek out the help of an attorney in New York. There is good reason to believe that a suit against Midland is worth pursuing.

 

[ja82]

Thank you everyone for taking the time to help me better understand my options.

I have reached out to a handful of attorneys based on search engine results. Any pointers on how to find/choose the best one? Maybe a good website trusted in the industry or better yet... recommendations? . To be honest, outside of purchasing my house I never had to hire one.

 

[quincy]

We cannot provide attorney recommendations on this site but you can go to the New York Bar Association's website to find attorneys in your area. I suggest you find one whose law practice centers on consumer fraud and protection.

http://www.nysba.org/

From what you have described in your posts, it appears that Midland violated at least one of the terms of their settlement agreement with the State (and possibly violated others).

Good luck to both you and your father, ja82.

 

[single317dad]

Any good consumer debt attorney would eat this case for lunch. Personally, I'd start with the fact that Midland disclosed your father's debt to you by garnishing the wrong account. Your father probably has a valid FDCPA action against them for that. I'd also take latigo's advice given earlier in the thread. Choose your attorney wisely.

Whatever your decision going forward, I wish you the best of luck against Midland, one of the dirtiest players in a very dirty game.

 

[quincy]

One of the terms of the settlement agreement with New York: "[Encore Capital Group] will not execute any affidavit, declaration, or other sworn statement in connection with a Debt Collection Action unless affiant has first reviewed the affidavit, declaration, or other sworn statement to confirm that the information and statements contained therein are truthful, accurate, and complete ..."

Midland appears to have failed just a bit in ja82's case in confirming accuracy. And, according to ja82, there cannot even be a garnishment against his father (this even if any judgment was legitimate to begin with, which would bear checking out).

ECG has had the unfortunate habit in various and assorted states of submitting false affidavits when obtaining default judgments, among a slew of other offenses and illegal collection practices.

You are right, single317dad. They do not play nicely.

I should point out that the first link I provided was to a New York City Consent Order. The second link was to New York State's settlement with ECG.