Consumer complaint received 2024-12-06 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: ENCORE CAPITAL GROUP INC.
State: GA

Complaint narrative:
Details of the Issue This is a follow-up to Complaint ID XXXX, originally submitted on XX/XX/XXXX. Midland Credit Management ( MCM ) reported a debt that I disputed on XX/XX/XXXX, under the Fair Debt Collection Practices Act ( FDCPA ). I sent a debt validation and cease communication letter formally disputing the debt and requesting proper validation. I also requested that MCM cease reporting the debt to the credit bureaus until validation was provided. 

Despite this, MCM failed to provide timely validation and continued to report the debt for months. While the debt has since been removed from my credit reports as of XX/XX/XXXX, their conduct resulted in significant financial harm, emotional distress, and reputational damage. 

Key Issues with Midland Credit Managements Conduct 1. Failure to Provide Adequate Validation MCM failed to provide the required documentation to validate the debt under FDCPA 1692g ( b ).

They did not supply : A copy of the original agreement with the creditor.

A clear chain of custody for the debt.

Proof of payment history or the balance owed. 
This failure violates XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), which requires debt collectors to substantiate disputed debts adequately. 
XXXX. Delayed Removal of Debt Despite my formal dispute and lack of validation, MCM continued reporting the debt to the credit bureaus. 
The debt was only removed in XX/XX/XXXX, after months of harm to my credit score and financial standing. 
XXXX. Misrepresentation in Response to CFPB Complaint In their response to Complaint ID XXXX, MCM falsely claimed that I had retained an attorney, which is untrue. 
Such false or misleading representations violate FDCPA 1692e. 
XXXX. Violation of Identity Theft Protections I provided a police report and an identity theft affidavit, yet MCM failed to block the account as required under FCRA 605B. 
Their continued reporting of the fraudulent debt after receiving this documentation is a violation of federal law. 

Harm Caused XXXX. Financial Harm The prolonged reporting of the unvalidated debt negatively impacted my credit score. 
I experienced credit denials, higher interest rates, and lost financial opportunities. 
XXXX. Emotional Distress MCMs failure to resolve my dispute and their misrepresentation caused stress and anxiety. 
XXXX. Reputational Damage The inaccurate reporting harmed my reputation as a reliable borrower. 

Violations of Federal Laws Fair Debt Collection Practices Act ( FDCPA ) : 1. 1692g ( b ) : Failure to validate the debt upon request.

2. 1692e ( 8 ) : Reporting disputed information to credit bureaus without proper disclosure.

3. 1692e : Misrepresentation ( false claim of attorney representation ).

4. 1692f : Employing unfair or unconscionable collection practices.

Fair Credit Reporting Act ( FCRA ) : 1. 1681s-2 ( a ) : Failure to ensure the accuracy of information reported to credit bureaus.

2. 1681s-2 ( b ) : Failure to conduct a reasonable investigation after a dispute.

3. 605B : Failure to block fraudulent information after receiving identity theft documentation.

Case Law Supporting My Claims : XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) : Debt collectors must provide sufficient validation of disputed debts. 
XXXX. XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Failing to correct inaccuracies after receiving disputes violates FCRA 1681s-2 ( b ).

Company response to consumer: Closed with non-monetary relief