Consumer complaint received 2024-04-23
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: ENCORE CAPITAL GROUP INC. (TX)

To whom it may concern My name is XXXX XXXX and I am filing a claim against MIDLAND CREDIT MANAGEMENT , INC ( MCM ) which is A debt collection agency that is owned by ENCORE CAPITAL GROUP, INC ( ECG ) and any other entities known or unknown. ENCORE CAPITAL GROUP INC purchases bad debt that in their XXXX filings with the SEC, they state : We acquire and service charged-off receivables that the obligors have failed to pay and the sellers have deemed uncollectible and have written off. 
This Company has had multiple lawsuits and claims filed against them for violation ( s ) of the 12 CFR part 1006- debt collection practices on authority from 15 USC 1692 ( a ) ( b ) ( c ) and other laws pertaining to debt collection.

In my situation MCM violated my rights as a protected consumer in the Consumer Financial Protection Act of 2010. MCM also violated 15 USC 1692 ( e ) ( f ) ( g ) ( j ), filed a claim against me for a debt they purchased and failed to serve me and received a default judgment. I became aware of this because XX/XX/XXXX my bank account was garnished and levied. I called the MCM and gave them my information and they told me that my information did not show in their system. This goes to show that even though they have had lawsuits, judgements, and injunctions placed upon them for these violations because of the revenue they generate they don't care about the redresses and civil money penalties they must pay because it is small compared to their yearly revenue. 

They had a XXXX in XXXX that came from the CFPB for violations of the Consumer Financial Protection Act of 2010. They also violated the Consent order of XXXX There needs to be further oversight and reviews into this company and its practices. Also there needs to be regulatory reform and more adequate compensation for consumers that have and will be violated by the companys continued unlawful practices. 

They filed their claim in the Justice of the peace precinct XXXX XXXX XXXX Texas. They sent a server who stated that she served the alleged debtor in person with the said person Idendentifying themselves by name. She stated that the person who she served was a XXXX male, XXXX XXXX XXXX lbs. I am a XXXX male, XXXX. I was never served and i didnt know about this claim until my bank accounts were garnished and frozen because of a legal order they obtained by misleading and false information. Because of the laws in Texas I can't go to the courts and have the judge dismiss this case because you only have 120 days at most to file a dispute even if you never knew about the claim. I also have documents showing that they are not actually verifying the information and data they file. I called MCM XX/XX/XXXX when I became aware of the judgment and gave my name and DOB and court case number, they told me that That information didnt pull up in the system. I was hung up on twice that day because they wanted more information that I would not provide because they had already said I was not in the system. The next day I called again and they told me the same thing. I asked if they had the original contract that I allegedly signed with the original creditor and they told me they did not have that information and all they had were a few statements from the original creditor. I had filed reports with the FTC before because I was a victim of Identity theft. I told MCM about that and they said they would have to do an investigation that would last 90 days but they would still garnish my bank account and keep accounts frozen until they finished their investigation. 

I am seeking to have the judgment dismissed and the claim thrown out. Also all monies returned with interest. Also would like to be paid damages because of the emotional stress and XXXX  i have had to deal with because of this false claim. Because of what they have done I am facing eviction because I don't have money to pay my rent. 

Also after reading their SEC filings from these past years it is apparent that they are preying on individuals who are facing financial hardships already and relying on their inability to pay, ignorance, and/or MCM/ECG ( s ) ability to manipulate the courts with the bevy of false information made to look real and legitimate in order to get judgments in their favor. I would like to request a subpoena duces tecum for ECG, MCM, and Midland funding LLCs and any companies know or unknown for any and all records pertaining to this said account. 

Also, it appears ECG is purchasing debts securities and transferring them to MCM or Midland Funding LLC in order to play a game of misdirection in who purchases/owns/collects these debt receivables in order to continue to raise capital, sell stock and notes to its investors. The unbroken chains of title they file in individual lawsuits are in fact false because it appears MCM does not purchase debt securities, It appears that ECG purchases the debt securities, immediately discharges the debts, and then it transfers to MCM and/or Midland Funding LLC to collect. 

In Their SEC Filings they state : Principled Intent. Across the full extent of our operations, we strive to treat consumers with respect, compassion, and integrity. From affordable payment plans to hardship solutions, we work with our consumers as they attempt to return to financial health. We are committed to dialogue that is honorable and constructive and hope to play an important and positive role in our consumers financial recovery. We believe that our interests, and those of the financial institutions from which we purchase portfolios, are closely aligned with the interests of government agencies seeking to protect consumer rights. We expect to continue investing in infrastructure and processes that support consumer advocacy and financial literacy while promoting an appropriate balance between corporate and consumer responsibility. 

Through the many lawsuits, And the Judgment and injunction recently placed upon them by the CFPB it appears that they are violating what they are stating within their own public filings.

Encore Capital Group , Inc. ( Encore ), through its subsidiaries ( collectively with Encore, the Company ), is an international specialty finance company providing debt recovery solutions and other related services for consumers across a broad range of financial assets. The Company purchases portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies and commercial retailers. Defaulted receivables may also include receivables subject to bankruptcy proceedings. The Company also provides debt servicing and other portfolio management services to credit originators for non-performing loans. 

Our Competitive Advantages XXXX XXXX. We believe that success in our business depends on our ability to establish and maintain an information advantage. Leveraging an industry-leading financially distressed consumer database, our in-house team of statisticians, business analysts, and software programmers have developed, and continually enhance, proprietary behavioral and valuation models, custom software applications, and other business tools that guide our portfolio purchases. Moreover, our collection channels are informed by powerful statistical models specific to each collection activity, and each year we deploy significant capital to purchase credit bureau and customized consumer data that describe account level and macroeconomic factors related to credit, savings, and payment behavior. 
Consumer Intelligence. At the core of our analytic approach is a focus on characterizing our consumers willingness and ability to repay their financial obligations. In this effort, we apply tools and methods from statistics, psychology, economics, and management science across the full extent of our business. During portfolio valuation, we use an internally developed and proprietary family of statistical models that determines the likelihood and expected amount of payment for each consumer within a portfolio. Subsequently, the expectations for each account are aggregated to arrive at a portfolio-level liquidation solution and a valuation for the entire portfolio is determined. During the collection process, we apply a number of proprietary operational frameworks to match our collection approach to an individual consumers payment behavior. 



A significant portion of our collections relies upon our success in individual lawsuits brought against consumers and our ability to collect on judgments in our favor. 

Also : Revenues Our revenues primarily include debt purchasing revenue, which is revenue recognized from engaging in debt purchasing and recovery activities. We apply our charge-off policy and fully write-off the amortized costs ( i.e., face value net of noncredit discount ) of the individual receivables we acquire immediately after purchasing the portfolio. 


So it appears that ECG/MCM and all companies known and unknown are messing over the everyday consumer who falls on hard times. It is predatory practices on financially stricken individuals whom they claim to be helping but instead are pushing into further financial ruin.