Consumer complaint received 2024-10-02
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: ENCORE CAPITAL GROUP INC. (FL)

I am writing in response to your recent communication regarding my complaint through the Consumer Financial Protection Bureau ( CFPB ). While I appreciate your acknowledgment of my concerns, your response fails to address the serious violations of federal law that have occurred concerning your handling of my personal information, particularly around consent and disclosure. I outline below the specific legal violations and my formal demands for corrective action. 

Violation of Consent Requirements 15 U.S.C. 1681b ( a ) ( 2 ) Pursuant to 15 U.S.C. 1681b ( a ) ( 2 ) of the Fair Credit Reporting Act ( FCRA ), consumer reports may only be furnished with the written instructions of the consumer to whom it relates. At no point did I provide Midland Credit Management or any credit reporting agency ( CRA ) with written or verbal consent to furnish my personal information to XXXX, XXXX, XXXX, or XXXX. 

Your continued reporting of my personal information to these CRAs, in the absence of my explicit consent, constitutes a clear violation of the FCRA. I demand that you immediately cease the unauthorized furnishing of my information and take immediate steps to ensure the removal of this data from my credit reports. 

Non-Compliance with Gramm-Leach-Bliley Act ( GLBA ) 15 U.S.C. 6802 and 12 CFR 1016.4 Under 15 U.S.C. 6802 ( b ) of the Gramm-Leach-Bliley Act ( GLBA ), and as implemented in 12 CFR 1016.4, you are required to provide me with a clear and conspicuous privacy notice explaining my right to opt out of the disclosure of my nonpublic personal information to nonaffiliated third parties. You are also required to provide this notice before any disclosure occurs. 

Despite your claims, you have failed to provide me with any clear notice of my right to opt out of such disclosures. The privacy notice you referenced in your response does not meet the clear and conspicuous standards required by law, and I was not given a meaningful opportunity to opt out of the disclosure of my personal information. 

Additionally, under 12 CFR 1016.7, a consumer may exercise their opt-out rights at any time, and the financial institution must comply with the opt-out request as soon as reasonably practicable. You have neglected to inform me of this right and have continued to unlawfully disclose my personal information to the CRAs. 

I am formally invoking my opt-out rights under 12 CFR 1016.7 and demand that Midland Credit Management cease any further disclosure of my nonpublic personal information to CRAs or other third parties. 

Failure to Maintain Reasonable Procedures 15 U.S.C. 1681e ( b ) and 12 CFR 1022.42 Under 15 U.S.C. 1681e ( b ) of the FCRA, and as outlined in 12 CFR 1022.42, credit reporting agencies are required to maintain reasonable procedures to assure the maximum possible accuracy of the information they report. Midland Credit Management, by furnishing inaccurate, outdated, or incomplete information to the CRAs, has contributed to the CRAs failure to maintain these reasonable procedures. 

Despite my multiple disputes, you continue to furnish information that is inaccurate or unverifiable, which is a direct violation of your obligations under the FCRA. By failing to ensure that the information furnished to the CRAs is accurate and properly verified, Midland Credit Management is contributing to the ongoing harm caused by these inaccuracies. 

I demand that you take immediate action to ensure that all information related to my account is removed from the CRAs, as it is either inaccurate or has not been properly verified under the law. 

Failure to Provide Adequate Validation of the Debt FDCPA Violations ( 15 U.S.C. 1692g ) Under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g, Midland Credit Management is required to provide adequate validation of any debt that it seeks to collect. While you assert that the documentation provided is sufficient, I dispute this claim. The verification information provided does not fully substantiate the debt in question.

FDCPA case law may suggest that you are not required to produce all billing statements, but you are obligated to provide enough documentation to prove that the debt is valid, especially in the context of ongoing disputes. The verification information you have provided does not meet this standard, as it lacks sufficient documentation regarding the original contract and the detailed history of the debt. 

I request that you provide adequate validation of the debt, including the original contract and a detailed account history, or cease all further collection and reporting activities related to this account. 

Conclusion Midland Credit Managements continued furnishing of my personal information to the CRAs without my consent, refusal to honor my opt-out rights, and failure to maintain reasonable procedures in reporting constitute clear violations of the FCRA, GLBA, and FDCPA. I request the following corrective actions : Cease all reporting of this account to XXXX, XXXX, XXXX, and XXXX. 
Remove all inaccurate, outdated, or unverifiable information from my credit reports immediately. 
Honor my formal opt-out request under 12 CFR 1016.7, ceasing all further disclosure of my personal information to third parties. 
Provide sufficient validation of the debt, including the original agreement and a detailed account history, or cease collection efforts.