Consumer complaint received 2025-10-02 00:00:00
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Threatened to sue you for very old debt
Company: ENCORE CAPITAL GROUP INC.
State: MA

Complaint narrative:
Formal Complaint Regarding Unlicensed, Harassing, and Deceptive Debt Collection Practices I am writing to file a formal complaint regarding a series of unlawful actions by a debt collection company. The following is a detailed chronology of events. 

I. Chronology of Events and Violations This complaint details a pattern of unlawful debt collection activity, including operating without a required state license, making threats of legal action it may not be authorized to take, and failing to respect formal debt validation disputes and cease-and-desist demands.

A. The Debt Collector 's Initial Communications and Inherent Violation The debt collector initiated collection efforts on two separate accounts it had purchased. The initial notices, while containing some validation-of-rights language, were the first step in an unlicensed collection campaign directed at a resident of a state that requires mandatory licensure for debt collectors.

The first account, associated with an original creditor from the banking sector, was referenced in a communication dated XX/XX/year>. 

The second account, associated with a different major banking original creditor, was referenced in a communication dated XX/XX/year>. 

Crucially, this debt collector is not licensed to collect debts in my state of residence, as verifiable through my state 's official licensing database. Engaging in collection activity without this mandatory license is a direct violation of my state 's statutes. Every communication sent to my address constitutes a separate violation of state law. 

B. Escalation to Threats of Litigation On or about XX/XX/year>, the collector escalated its unlawful campaign by sending a collection letter for one of the accounts, prominently titled " ATTORNEY REVIEW PLANNED. '' This letter stated, in substance : " If you do not reply, we plan on sending your account to an attorney in your state... We intend to have a lawsuit filed against you. '' It demanded payment by XX/XX/year>. 

This threat is deceptive and abusive under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e ( 5 ) & ( 10 ), for several reasons : An entity that is not licensed to collect debts in a state often lacks the legal standing to lawfully initiate a lawsuit through an attorney in that state 's courts for its own benefit as the current owner of the debt. 

The threat implies a legal action is imminent and inevitable, which is deceptive if the collector knows it can not legally file suit due to its unlicensed status or if it has no actual intention of doing so. 

This communication was an attempt to collect a debt without the legal authority to do so, an unfair practice under 15 U.S.C. 1692f.

C. My Formal Response and Assertion of Rights In response to the collector 's unlawful collection campaign and threats, I took the following corrective and legally prescribed actions : Formal Debt Validation Disputes : On XX/XX/year>, I sent two comprehensive debt validation letters to the collector via certified mail, pursuant to my rights under 15 U.S.C. 1692g. 

These letters formally disputed the debts and demanded specific documentation to prove the debts ' validity, the collector 's legal ownership, and its authority to collect in my state. The collector was given 30 days to provide this verification and was instructed to cease all collection activity pending fulfillment of this request. 

Cease and Desist Demand : On XX/XX/year>, I sent a separate, firm Cease and Desist letter to the collector 's Legal Department via certified mail. 

This letter explicitly cited the collector 's unlicensed status in my state as a primary violation. 

It demanded that the collector provide proof of its state license or proof of engagement with a state-licensed attorney within 14 days. 

It formally demanded that the collector " cease all collection activities, '' including litigation threats and credit reporting, effective immediately. 

The letter also served as a formal demand for relief under my state 's consumer protection statute regarding unfair and deceptive practices. 

II. Summary of Violations The collector 's actions constitute multiple, willful violations of federal and state law : Unlicensed Collection : All collection activity, from the first letter to the most recent threat, is illegal due to the collector 's unlicensed status in a state that requires it.

False, Deceptive, or Misleading Representations ( FDCPA 15 U.S.C. 1692e ) : Threatening a lawsuit in a state while unlicensed is deceptive and misleading.

Harassing, Oppressive, or Abusive Conduct ( FDCPA 15 U.S.C. 1692d ) : The threat of baseless legal action to coerce payment is abusive.

Unfair or Unconscionable Means to Collect ( FDCPA 15 U.S.C. 1692f ) : Using the threat of the legal system as a tool without the legal standing to do so is unfair.

Failure to Validate Debt Before Continuing Collection ( FDCPA 15 U.S.C. 1692g ( b ) ) : The " Attorney Review Planned '' letter, dated XX/XX/year>, is a clear continuation of collection activity. My formal disputes, sent on XX/XX/year>, now legally obligate the collector to cease all collection until it provides verification. Its prior threat is a violation of this spirit, and any further action before validation would be a direct violation. 

III. Request for Assistance I have taken all reasonable steps to resolve this directly with the collector by formally disputing the debts and demanding it cease its illegal activity. The collector has instead chosen to escalate its threats with a deadline for " pre-legal '' action of XX/XX/year>. 

I request that the CFPB investigate this debt collector for its apparent unlicensed debt collection activities and its deceptive and abusive threats of litigation. My goal is to secure my rights as a consumer and compel this company to comply with the law. Its unlicensed status and deceptive threats have caused significant distress, and it must be compelled to cease all collection activity. 

I will provide any specific account numbers or personal information directly to the CFPB upon request to facilitate this investigation.

Company response to consumer: Closed with explanation