Consumer complaint received 2024-02-17
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: ENCORE CAPITAL GROUP INC. (NJ)

In XXXX, Midland Credit Management filed a civil complaint against me over {$1200.00}. Howver, since acquiring the debt in XX/XX/XXXX, they engaged in confusing and nerfarious collections practices in violation of numerous federal and consumer protection laws. 

This civil suit has caused mental, emotional, and physical anguish in the form of XXXX XXXX 

And this civil suit lead to my losing a licensing opportunity with a financial firm with whom I was XXXX XXXX XXXX XXXX XXXX XXXXr for teachers and nonprofit workers. 

As an XXXX XXXX on Medicaid, I worked 70, 80, and 90-hour work weeks to overcome homelessness and {$14000.00} of credit card debt incurred in XXXX during XXXX XXXX. Since XX/XX/XXXX, I was able to triple my credit score. 

Midland Credit Management 's confusing and nerfarious collections practices played a direct hand in my becoming a defendant in this civil suit in the first place. And to lose this job opportunity that would help me overcome my student loan debt, invest in the educational programming of my nonprofit, and help other teachers and nonprofit workers overcome their financial duress after all I've been through is devastating. 

At the time of writing this, the status of the civil suit is still pending. 

Midland Credit never mailed any correspondence about the debt to a correct mailing or residential address. I engaged in one phone call correspondence with Midland Credit wherein I asked for debt validation. They mailed that debt validation letter to the wrong address and it was missing provisions 3 and 4 of 15 U.S. Code 1692g ( a ).

Midland Credit Management is in violation of 15 U.S. Code 1692g ( a ), which requires that Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing ( 1 ) the amount of the debt ; ( 2 ) the name of the creditor to whom the debt is owed ; ( 3 ) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector ; ( 4 ) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector ; and ( 5 ) a statement that, upon the consumer 's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. 

Initial communication with Midland Credit Management was established through a phone call held sometime between XX/XX/XXXX and XX/XX/XXXX. 

On XX/XX/XXXX, Midland Credit Management intentionally mailed the debt validation letter, evidenced in Exhibit H, to an invalid address. 

Midland Credit can not claim a bona fide error defense, as they have put forth no evidence to suggest it sent me a validation notice at a valid address. See Mahon v. Credit Bureau of Placer County, 171 F.3D 1197 ( 9th Cir. 1999 ). 

Additionally, in the debt validation is missing provisions 3 and 4 of 15 U.S. Code 1692g ( a ). Without provisions ( 3 ) and ( 4 ), the validation noticecreates confusion by overshadowing and obscuring the required information set out by provisions ( 3 ) and ( 4 ) .See Muha v. Encore Receivable Mgmt., Inc., 558 F.3D 623, 629 ( 7th Cir. 2009 ) ; Johnson v. Revenue Mgmt. Corp., 169 F.3D 1057, 1060 ( 7th Cir. 1999 ) ; Bartlett v. Heibl, 128 F.3D 497, 500 ( 7th Cir. 1997 ) ; Avila v. Rubin, 84 F.D3 222. 226 ( 7th Cir. 1996 ).

I would like to note that I did not receive this debt validation notice until XXXX XXXX This debt validation notice was provided in evidence used to justify Midland Credit 's motion for a summary judgment against me in this civil suit. Midland Credit mailed every single correspondence concerning this debt to the wrong address, even though Synchrony Bank provided them with my correct mailing address. They did not even file this civil suit with my correct address. Further evidence of this practice is provided in the case docket, the number for which can be found in the evidence provided for the complaint with the CFPB I'm currently filing.

In failing to send any communications regarding the debt in question to a valid address, Midland Credit Management also violated rules set forth by the Consumer Financial Protection Bureau.

12 CFR 1006.42 ( a ) states : A debt collector who sends disclosures required by the Act and this part in writing or electronically must do so in a manner that is reasonably expected to provide actual notice, and in a form that the consumer may keep and access later. 

As stated in my objection to the summary judgment ( which Midland Credit attempted to obscure through a XXXX XXXX ), Midland Credit intentionally mailed notice to an invalid address whenever Plaintiff possessed the valid address provided to Plaintiff by XXXX XXXX, from whom Plaintiff purchased the debt. Thus, Plaintiff is in violation of 12 CFR 1006.42 ( a ). See Lightfoot v. Clark County Collection Services, LLC, 2:22-cv-608 ( 9th Cir. 2022 ).

12 CFR 1006.34 ( c ) ( 3 ) ( i ) ( ii ) ( iii ) states : A debt collector must provide the following validation information... ( 3 ) ( i ) The date that the debt collector will consider the end date of the validation period and a statement that, if the consumer notifies the debt collector in writing on or before that date that the debt, or any portion of the debt, is disputed, the debt collector must cease collection of the debt, or the disputed portion of the debt, until the debt collector sends the consumer either verification of the debt or a copy of a judgment. ; ( ii ) The date that the debt collector will consider the end date of the validation period and a statement that, if the consumer requests in writing on or before that date the name and address of the original creditor, the debt collector must cease collection of the debt until the debt collector sends the consumer the name and address of the original creditor, if different from the current creditor. ; ( iii ) The date that the debt collector will consider the end date of the validation period and a statement that, unless the consumer contacts the debt collector to dispute the validity of the debt, or any portion of the debt, on or before that date, the debt collector will assume that the debt is valid. 

In failing to provide the date that Midland Credit would consider the end of the validation period and the information about consumer protections ( see Exhibit H ), Plaintiff is in violation of 12 CFR 1006.34 ( c ) ( 3 ) ( i ) ( ii ) ( iii ). See Lightfoot v. Clark County Collection Services, LLC, 2:22-cv-608 ( 9th Cir. 2022 ).