Consumer complaint received 2021-03-30
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: ENCORE CAPITAL GROUP INC. (VA)

XX/XX/XXXX - I was served with a lawsuit being sued in small claims court ( General District ) court in XXXX XXXX Virginia for a debt that a XXXX XXXX purchased as a charge off from a XXXX XXXX account my ex-fianc and I had opened. She let the account go delinquent, and the last information I had was when XXXX, who was servicing the account for XXXX, reached out with a settlement offer. After that, I was not contacted about it until I received the summons. 

I did research about Midland Credit, and noticed all of their recent improper collection tactis. 

XX/XX/XXXX - I filed an answer to the lawsuit for the judge to send the case to private arbitration per the agreement of the original account terms. I provided service of my answer to XXXX 's attorneys. 

XX/XX/XXXX - I received a phone call from the XXXX Attorney that filed suit, XXXX XXXX XXXX. We discussed why I had counter filed, and if we could work out a settlement prior to having to appear in court ( which was scheduled for XX/XX/XXXX ). I sent him the last documentation I had from XXXX, and he came back with his best settlement offer of 50 % of the outstanding total to consider the account satisfied, the balance {$0.00} and the account paid less in full, but settled. 

XX/XX/XXXX - I accept the settlement offer, and immediately send XXXX a check via XXXX overnight. 

XX/XX/XXXX - He receives the payment and sends it to XXXX 's internal team that does that, and says it will take XXXX days to clear since it was a personal check, and that was no problem, and we would have the hearing on XX/XX/XXXX and ask for a continuation, and once the check cleared, he would dismiss the case. 

XX/XX/XXXX - I go to court as well, we agree that a settlement is in place, and the check has been provided, and are just waiting for final clearance of funds. The judge pushes the case to XX/XX/XXXX. 

XX/XX/XXXX - I reach out to XXXX to see if there is any additional items he needs from me. He responds that no, the funds have cleared, and he will write up a memo to the clerk of court that the matter is settled and for it to be dismissed. 

XX/XX/XXXX - XXXX 's attorney writes a memo to the clerk of court regarding the matter being settled and for it to be dismissed. 

XX/XX/XXXX - The clerk of court receives the memo, and reaches out to me, as I had called and ask for her if she did not mind before XX/XX/XXXX so I would know if I had to show up in court with proof of payment and offer. 

XX/XX/XXXX - I receive an update from credit karma for a " new '' and open collection account on my credit report. That is odd, because, I understand them reporting the account, that is fine, and that is what should be done, however per my agreement, and the terms from their legal team, my account was considered closed, and having a balance of {$0.00}. Why would my credit report show that I have a balance of {$1400.00} with an active open account. 

XX/XX/XXXX - I reach out to the XXXX attorney about this. He states that the account should show as closed and a balance of {$0.00}, however he doesn't handle that, and to call XXXX 's XXXX number. Which I do, and they state that the account is reflected properly. 

XX/XX/XXXX - I file a dispute with the three agencies, and submit the supporting documentation I am going to provide here as well ( copies of the settlement agreement, the memo to the clerk of court, the communication between the attorney and I, copies of my bank statement showing the cashed check and a copy of the cashed check ). 

I have not heard back from XXXX  or XXXX  as of this dispute, however experian has responded, and stated they found the information to be accurate, which I can not believe. They are the only one that was submitted online, so I was not able to submit as much documentation, however this is unbelievable ( to me ) tactics by an already known deceitful company. The fact that they can still report an open active collection account when their own attorneys agreed to a settlement offer that is not being honored, is mind blowing, and really hurts the consumer.