Consumer complaint received 2022-07-22
Company: ENCORE CAPITAL GROUP INC.
State: TX
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
I received the first letter from Midland on XX/XX/2022, with a statement from the original creditor XXXX XXXX XXXX You sent me a letter with statements attached from XXXXy XXXX  and a back page showing you purchase the debt from XXXX XXXX XXXX By CFPB subpart 2 regulation F you still did not validate any debt, you only sent me statements from the original creditor ( XXXX ) showing that you purchase the debt. 
I have also sent proof to XXXX of the law, and they still fail to remove off my credit file. 

Per 12 CFR Part 1006 - Fair Debt Collection Practices Act ( Regulation F ) subpart b CFPB 1006.34 Notice for validation of debts. 

( a ) Validation information required. 

( 1 ) In general. Except as provided in paragraph ( a ) ( 2 ) of this section, a debt collector must provide a consumer with the validation information required by paragraph ( c ) of this section either : ( i ) The last statement date, which is the date of the last periodic statement or written account statement or invoice provided to the consumer by a creditor ; Official interpretation of Paragraph 34 ( b ) ( 3 ) ( i ). 

1. Last statement date. Under 1006.34 ( b ) ( 3 ) ( i ), the last statement date is the date of the last periodic statement or written account statement or invoice provided to the consumer by a creditor. 
For purposes of 1006.34 ( b ) ( 3 ) ( i ), the last statement may be provided by a creditor or a third party acting on the creditors behalf, including a creditors service provider. However, a statement or invoice provided by a debt collector is not a last statement for purposes of 1006.34 ( b ) ( XXXX ) ( i ), unless the debt collector is also a creditor. 
You sent me a letter just advising me of the original creditor for XXXX, date of charge off, and the date you purchase the debt. You did not provide me what the law say you must provide when requesting for validation of debt. You are also not a creditor per CFPB subpart A 1006.2 Definitions. Regulation F ; For purposes of this part, the following definitions apply : ( g ) Creditor means any person who offers or extends credit creating a debt or to whom a debt is owed. The term creditor does not, however, include any person to the extent that such person receives an assignment or transfer of a debt in default solely to facilitate collection of the debt for another. 
So as a company you are being misleading and also deceptive with using the term or trying to claim that you are the original creditor. You are a debt buyer and per your website you claim Midland Funding, LLC is one of the nations largest owners of unpaid debts. Midland Funding owns accounts that have been charged off by the original lender. Charge offs happen after a lender doesnt receive payments for a period of time or payments are less than the minimum amount due. Lenders then close these accounts and sell them to companies like Midland Funding or MCM. So how can you claim to be a creditor that does not offer credit, but also state on your website you purchase charge offs? Like I advise in my first complaint you do not have any rights putting your purchase of a charge off of an alleged debt, that was written off on a company 's balance sheet, and claimed on the company 's corporation taxes as loss income on my credit report. Once that company has charge off any debt and include on their XXXX XXXX corporation taxes as bad debt ( charge off ), it is now considered loss income for that corporation and now that charge off becomes income for the consumer. If you are not aware of this, income is not reported on credit, so you are reporting income on my credit report which is not legal at all. Unless you can provide me with proof and documentation that XXXX never written or claimed this charge off on their corporation taxes, that you where transfer that debt to collect on XXXX behalf XXXX then you have no rights to report or collect any so-called debt from me. You purchased a bad debt/ charge off that has been written off from the prior and original creditor, assuming you have the rights to collect, but honestly you don't. Delete off all 3 of my credit reports and send me a letter showing proof, thank you!

Company response to consumer: Closed with explanation