Collection agency escapes class action lawsuit over tax threats

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By Anna Scott Farrell (August 1, 2022, 6:42 p.m. EDT) — A collection agency that threatened to report debtors to the Internal Revenue Service escaped a class action lawsuit on the grounds that the letters did not cause concrete harm , according to a federal court in New Jersey.

Judge Madeline Cox Arleo ruled on Friday that class action leaders lack standing to sue Midland Credit Management Inc. in federal court under the harm standards established by the U.S. Supreme Court last year in TransUnion LLC v. Ramirez.

While the couple leading the prosecution, Robert and Donna Schultz, said they felt panic, fear and confusion when Midland sent them letters trying to…

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