Consumer complaint received 2024-08-27
Product: Debt or credit management — Debt settlement
Issue: Didn't provide services promised — 
Company: ENCORE CAPITAL GROUP INC. (CA)

Complaint Regarding Unlawful Collection Practices and Misrepresentation by Midland Credit Management Dear CFPB Representative, I am filing a formal complaint against Midland Credit Management XXXX XXXX for their predatory practices, misrepresentation, and failure to provide proper validation of an alleged debt, which has resulted in significant financial and personal harm. The following details the events and issues related to my situation. 

Background Information : 1. **Alleged Debt and Original Creditor : ** - I am disputing a debt of {$470.00} claimed by Midland Credit Management . I have no contractual obligation with this company as they are not the original creditor. Under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g, I have the right to request validation of this debt, including proof of assignment from the original creditor. Despite multiple requests, Midland Credit has failed to provide any verifiable proof. 

2. **Misleading Representations and Unfulfilled Promises : ** - On XX/XX/year>2024, I contacted Midland Credit Management with the intent to settle the alleged debt for less than the stated amount. I was redirected to their dispute line, where I was told that for an initial payment of {$270.00} and subsequent payments of {$99.00} per month, Midland Credit would dispute not only this debt but all negative and inaccurate items on my credit report. I was assured that this would result in the removal of these items within XXXX month based on alleged inaccuracies and protections afforded by various legislative Acts. 

XXXX. **Failure to Perform Services and Further Harm to Credit : ** - It has now been XXXX months since entering into this arrangement, and I have paid more than the original debt amount. Despite this, none of the negative items on my credit report have been removed, and I have not received proof of any disputes being filed on my behalf. The credit bureaus have confirmed that they received disputes, but since these disputes were not filed directly by me, they were deemed invalid and no corrective actions were taken. Midland Credit Management 's failure to deliver the promised results has resulted in continued damage to my credit, affecting my ability to secure credit, loans, and housing. 

Legal Basis for Complaint : 1. **FDCPA Violations** - Midland Credit Management is in clear violation of the FDCPA, specifically 15 U.S.C. 1692e, which prohibits deceptive practices in the collection of debts. Their promises of removing negative items without proper validation and charging for such a service constitutes a violation of this statute.

2. **Fair Credit Reporting Act ( FCRA ) Violations** - The FCRA, 15 U.S.C. 1681 et seq., requires that any disputed information be investigated and that the furnisher of such information ( in this case, Midland Credit ) report accurate and complete information. Offering to dispute items en masse without proper validation and failing to report accurate outcomes violates my rights under the FCRA.

3. **Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) ** - Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, it is illegal for financial service providers to engage in practices that are unfair, deceptive, or abusive. Midland Credits actions clearly fall within this scope by misleading me into paying for a service that was never properly delivered. 

Desired Resolution : 1. Immediate removal of the {$470.00} debt from my credit report due to lack of verification. 
2. A full refund of all payments made toward this debt and for the alleged dispute services. 
3. Maximum monetary compensation for damages resulting from continued harm to my credit score, which has hindered my ability to secure loans, credit, and housing. 
4. An investigation into Midland Credit Managements practices and potential sanctions for violations of the FDCPA, FCRA, and UDAAP regulations. 

I have attached supporting documentation, including payment records, communications with Midland Credit, and responses from the credit bureaus confirming the invalid disputes. I trust that the CFPB, in conjunction with the relevant credit bureaus, will investigate this matter and provide a fair resolution. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX