Attorney General Erases $3.5 million from Debt Purchaser’s Portfolio

Attorney General (West Virginia) Darrell McGraw announced today that his office has entered into a settlement agreement with Midland Credit Management, Inc. (“Midland”) of San Diego, California resulting in the cancellation of more than $3.5 million in credit card debt allegedly owed by approximately 3,500 West Virginia consumers. Midland had previously purchased the charged-off accounts for collection from Cross Country Bank of Wilmington, Delaware.

Attorney General McGraw’s office began investigating Midland in 2004 after receiving complaints from West Virginia consumers who had been sued or contacted by Midland to collect debts originally owed to Cross Country Bank. Cross Country Bank is a credit card bank that markets high interest credit cards to consumers with bad credit histories. McGraw’s office settled its lawsuit against Cross County Bank on June 21, 2005.