Consumer complaint received 2024-08-23
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Sued you without properly notifying you of lawsuit
Company: ENCORE CAPITAL GROUP INC. (MA)

Re : Formal Complaint Against Midland Credit Management for Breach of Original Contract and Inaccurate Reporting To Whom It May Concern, I am writing to file a formal complaint against Midland Credit Management , Inc. for numerous violations related to the handling and reporting of a debt that has been incorrectly attributed to me. Specifically, I believe Midland Credit Management has breached the original contract terms and engaged in practices that violate both the Fair Debt Collection Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ). 

Breach of Original Contract Midland Credit Management has failed to adhere to the arbitration clause contained in the original contract I had with XXXX XXXX XXXX. This clause, which survives the sale of the debt, mandates that any disputes must be resolved through arbitration, not through traditional legal channels. Midland 's actions in pursuing collection activities and reporting this debt without proper validation directly breach this contractual obligation. 

Issues with Reporting and Validation There are several significant issues with the way Midland Credit Management has reported this debt to the credit bureaus, which include the following : Failure to Provide Debt Validation : Despite my formal request for debt validation, Midland has not provided any documentation that links this debt to me. The documentation they have provided, such as the bill of sale, does not contain any identifying information that confirms this debt is mine. 

Inconsistent Reporting of Account Opening Date : The account opening date is inconsistently reported across the credit bureaus : XX/XX/XXXX ( XXXX ) XX/XX/XXXX ( XXXX and XXXX ) Incorrect Classification of Account Type : XXXX has listed this account as an " Open Account, '' which is misleading and inaccurate for a collection account. 

Misleading Information about Original Creditor : The account is incorrectly listed as " Collection ( Original Creditor : COLLECTION ), '' failing to properly identify XXXX XXXX XXXX  as the original creditor. 

Inconsistent Payment Status Reporting : The payment status is reported as : " Late 120 Days '' by XXXX " Collection/Chargeoff '' by XXXX and XXXX Incorrect Reporting of Monthly Payment : The monthly payment is listed as {$0.00}, which is inconsistent with the accounts classification as an " Open Account. '' Inconsistent Reporting of Balance and Past Due Amounts : While the balance is consistently reported as {$740.00}, the past due amounts are inconsistently reported or omitted entirely. 

Inconsistent Reporting of Last Payment and Last Active Dates : There are significant discrepancies in the dates reported : XX/XX/XXXX ( XXXX ) XX/XX/XXXX ( XXXX and XXXX ) Incorrect Reporting of Number of Months/Terms : The number of months or terms is either inconsistently reported or not reported at all across the different bureaus. 

Misleading Reporting of Payment Status History : The payment history includes misleading entries, such as " OK '' under XXXX for XX/XX/XXXX, which is inaccurate for a collection account. 

Lack of Detailed Comments or Explanations : There is a lack of detailed comments or explanations, particularly on XXXX, leading to confusion and inaccurate reporting. 

Incorrect Scheduled Removal Date : Midland Credit Management has incorrectly reported the account removal date as XX/XX/XXXX, despite the bill of sale indicating that the account should only be reported until XX/XX/XXXX. This is a blatant re-aging of the account, which is both misleading and a violation of credit reporting standards. 

Possible Misattribution Due to Common Name : There are numerous individuals with the same name as mine, and it appears this debt has been incorrectly attributed to me without sufficient verification. 

Request for Action I am requesting the following actions be taken : Immediate Deletion of the Midland Credit Management Tradeline : Due to the numerous inaccuracies and the failure to validate the debt properly, I request that the Midland Credit Management tradeline be deleted from all credit reports. 

Correction of XXXX XXXX XXXX  Reporting : I request a thorough review of XXXX XXXX XXXX  reporting practices to ensure accuracy and consistency across all credit bureaus. 

Investigation into Breach of Contract : I request that the CFPB investigate Midland Credit Managements failure to honor the arbitration agreement as stipulated in the original contract. 

Conclusion Midland Credit Managements practices have caused significant harm to my credit profile and financial well-being. Their failure to adhere to legal requirements and contractual obligations is unacceptable, and I request that the CFPB take swift action to correct these issues. 

Thank you for your attention to this matter. I look forward to a prompt resolution. 

Sincerely, XXXX XXXX