Consumer complaint received 2024-09-17
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: ENCORE CAPITAL GROUP INC. (TX)

Letter to the Consumer Financial Protection Bureau ( CFPB ) : Subject : XXXX XXXX Midland Credit Management Account Numbers : XXXX XXXX XXXX XXXX XXXX XXXX, Dear Consumer Financial Protection Bureau, I am writing to provide additional documentation and formally update my complaint against Midland Credit Management. This complaint concerns the unauthorized transfer of debts originally associated with XXXX XXXX and XXXX from XXXX XXXX XXXX to Midland Credit Management. The issues I have experienced with Midland Credit Management include the following : 1. Unauthorized Transfer of Debt : These debts were transferred without my knowledge or consent. XXXX XXXX XXXX has been under investigation, and their involvement in managing my debts was terminated. Despite this, Midland Credit Management is claiming ownership of the debts. I am requesting full documentation from Midland Credit Management proving that these transfers were authorized and properly executed. 
2. Failure to Acknowledge Legal Representation : In XX/XX/year>, I informed Midland Credit Management that I had legal representation. Despite this, Midland continued collection efforts and reported these debts to the credit bureaus, which remained on my credit report since XX/XX/year>. This violates the Fair Debt Collection Practices Act ( FDCPA ), as they were required to cease communication once legal representation was in place. 
3. Credit Reporting Issues : Midland Credit Management has provided contradictory information regarding credit reporting. They claimed that these debts were not being reported to credit bureaus, yet when I applied for a VA loan as an active member of the XXXX XXXX, I was denied due to these collections appearing on my credit report. This may constitute a violation of the Fair Credit Reporting Act ( FCRA ).

4. Continuous Harassment : I have been subjected to frequent phone calls, emails, and threatening prelegal notices from Midland Credit Management. Their communication has been aggressive even though I had legal representation, and I relied on XXXX XXXX XXXX to negotiate. I have no clarity on what was negotiated or paid, and this lack of transparency has caused undue stress. 
Given the significant impact these actions have had on my financial standing and my ability to secure a VA loan, I request further investigation and enforcement action from the Consumer Financial Protection Bureau. 
Attached is my formal letter to Midland Credit Management detailing these concerns. I look forward to your continued assistance in resolving this matter. 


Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX LETTER TO XXXX Letter to Midland Credit Management : Subject : Formal Dispute and Request for Debt Validation I am writing in response to your letter dated XX/XX/year>, in which you claim ownership and have validated the debts originally associated with XXXX XXXX XXXX, XXXX. While I acknowledge receipt of the validation letter you provided, I dispute the validity of your claim to ownership of these debts and your right to collect them for the following reasons : XXXX. Unauthorized Transfer of Debt : I did not authorize the sale or transfer of these debts from XXXX XXXX XXXX XXXX Midland Credit Management. As you are aware, XXXX XXXX XXXX has been under scrutiny, and their involvement in my debt management was terminated. While you have provided a validation letter for the XXXX XXXX XXXX  debts, this transfer was conducted without my consent. I request full documentation proving that this transfer was properly authorized, including : Proof of ownership transfer for each account. 
- Explanation why the amount of debt is higher than original amount A detailed accounting of all payments made and the amounts negotiated on my behalf. 
The original agreements with XXXX XXXX XXXX, XXXX Transfer agreement. 

2. Failure to Acknowledge Legal Representation : In XX/XX/year>, I informed Midland Credit Management that I had legal representation. Despite this, you continued collection activities, and the collection remained on my credit report since XX/XX/year>. This is a violation of proper legal procedure and may constitute a violation of the Fair Debt Collection Practices Act ( FDCPA ), which requires debt collectors to cease direct communication when legal representation is in place. 

3. Contradictory Information Regarding Credit Reporting : Despite your claim that these debts have not been reported to the credit bureaus, I have evidence that they have been reported. When attempting to use my VA loan as an active member of the XXXX XXXX, I was informed that I was denied due to these collections appearing on my credit report. This contradicts your statements and may violate the Fair Credit Reporting Act ( FCRA ). I request immediate clarification of the status of these accounts with all credit bureaus and correction of any inaccurate reporting. 

4. Violation of Fair Debt Collection Practices Act ( FDCPA ) : Your frequent phone calls, threatening emails, and prelegal notices, in addition to claiming ownership of debts that were transferred without my consent, may violate the FDCPA. I have no clarity on the amounts negotiated on my behalf, nor the legitimacy of these debt transfers. This lack of transparency has caused undue stress and affected my financial standing. 

5. XXXX  Finance Code Violations : As a resident of Texas, I am protected under the XXXX Finance Code, which prohibits deceptive or unfair practices in the collection of consumer debts. The unauthorized transfer of my debts and inconsistent statements regarding credit reporting may constitute a violation of these protections. 

6. Formal Complaint with the Consumer Financial Protection Bureau : I have filed a formal complaint with the Consumer Financial Protection Bureau ( CFPB ) against both XXXX XXXX XXXX and Midland Credit Management. The CFPB is investigating this matter, and I expect full cooperation from Midland Credit Management in providing all requested information. 

Therefore, I formally request that you : - Cease all collection activities, including phone calls, emails, and threats of legal action, until this matter is resolved. 
- Provide proof that the debt transfers were authorized and properly executed. 
- Correct any inaccuracies in your credit reporting, as this is already negatively affecting my ability to secure a VA loan. 

If you fail to comply with these requests, I will pursue further complaints with the CFPB and consider additional legal action to protect my rights under federal and state law. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX