Consumer complaint received 2026-05-13 00:00:00
Product: Debt collection — Credit card debt
Issue: False statements or representation — Indicated you were committing crime by not paying debt
Company: ENCORE CAPITAL GROUP INC.
State: NC

Complaint narrative:
Midland Credit Management , Inc. ( " Midland Credit '' ) has attempted to collect from me on four consumer accounts ( MCM # XXXX, # XXXX, # XXXX, and # XXXX ) while sending me written correspondence that does not comply with the licensing-disclosure requirements imposed on collection agencies in North Carolina , the State where I reside and where the collection activity is directed. Midland Credit has now confirmed this non-compliance in writing to a federal regulator and continues to furnish information about these accounts to the three major consumer reporting agencies. I have previously raised related issues through CFPB Case # XXXX and NC DOJ XXXX XXXX. XXXX. Midland Credits response letters of XXXX XXXX XXXX XXXX XXXX XXXX XXXX do not address the federal violations described below. I am filing this complaint to place those federal violations directly before the Bureau. Issue 1 Federal violations arising from collection correspondence that omits required state licensing disclosure ( 15 U.S.C. 1692e ( 5 ), 1692e ( 10 ), and 1692f ) North Carolina law requires that " [ a ] ll collection agencies licensed under this statute doing business of a collection agency in this State, shall in all correspondence with debtors use stationery or forms which contain the permit number and the true name and address of such collection agency. '' XXXX XXXX XXXX. XXXX. The North Carolina Department of Insurance ( " NCDOI '' ) administers this Article and issues the collection-agency permits to which XXXX refers. Midland Credits XXXX XXXX XXXX letter ( to NC DOJ regarding File No. XXXX ) and XXXX XXXX XXXX letter ( to the CFPB regarding Case # XXXX ) both expressly state, " This communication is from a debt collector. '' Both letters were sent to me as the consumer. Neither letter, from Midland Credit, contains a North Carolina collection agency permit number on the stationery or anywhere in the body of the correspondence. When I raised this issue in my prior CFPB complaint, Midland Credits XXXX XXXX XXXX response declined to provide the permit number. It stated only that the company is " licensed and/or bonded in every state which requires such licensing and/or bonding for collection companies '' and instructed me to " contact your local state office for more information regarding licensing requirements. '' Midland Credit has now affirmatively, in writing, both ( a ) confirmed that its correspondence with me does not contain the disclosure required by XXXX, and ( b ) declined to bring the correspondence into compliance. I am not asking the Bureau to enforce N.C. Gen. Stat. XXXX directly. I am identifying federal violations that arise from this conduct : Violation of 15 U.S.C. 1692e and 1692e ( 10 ) false representation or deceptive means. By sending collection correspondence to me that holds itself out as the work of a duly licensed collection agency while omitting the statutorily required permit number, Midland Credit uses deceptive means to create the appearance of regulatory legitimacy that the correspondence itself, on its face, does not establish. Courts have recognized that a debt collectors failure to comply with state licensing-related disclosure requirements, where the collector nonetheless communicates with the consumer as a licensed entity, can constitute a 1692e violation. The Bureaus own Regulation F preamble and supervisory guidance treat state licensing compliance as a foundational element of lawful debt collection practice. Violation of 15 U.S.C. 1692e ( 5 ) threats to take action that can not legally be taken. Midland Credits XXXX XXXX XXXX letter affirmatively states that " account nos. XXXX and XXXX had been determined to be eligible for legal efforts '' and that " non-payment on the accounts may result in the accounts being forwarded to a law firm in [ my ] area to review for possible legal efforts to collect the balance. '' A debt collector that is operating in non-compliance with state licensing-disclosure requirements is not in a position to make such representations, and using the threat of legal action while simultaneously refusing to provide the state-required licensing disclosure violates 1692e ( 5 ). Violation of 15 U.S.C. 1692f unfair or unconscionable means. Continuing to attempt to collect a debt, and continuing to furnish information about that debt to consumer reporting agencies, while operating in admitted non-compliance with the states correspondence-disclosure requirements, is an unfair means of collection within the meaning of 1692f. The consumer is denied the ability to verify, on the face of the correspondence, that the entity demanding payment is operating within the regulatory framework that authorizes it to do so. Issue 2 Additional context : third-party disclosure through email subject lines ( 15 U.S.C. 1692c ( b ) ) As additional context showing a pattern of non-compliance, Midland Credit has previously sent me email collection communications with subject lines that disclose or expressly reference the existence of the debt, including " XXXX, youve got some unfinished business, '' " XXXX, Please Address Your Financial Commitment, '' " XXXX, Accept Your Low Payment Option, '' and similar formulations. Email subject lines are visible in lock-screen notifications, notification previews, and on shared or monitored devices without the message being opened. Midland Credits response to this issue in my prior CFPB complaint stated only that the subject lines were " reviewed and approved '' by its legal team and that the company " does not have control over an individual users settings on devices, applications, or email service providers. '' That response did not address the substance of the 1692c ( b ) concern. I have retained dated copies and screenshots of these communications and will produce them on request. I raise this here primarily as evidence of a broader pattern of treating consumer-facing compliance obligations as discretionary. What Midland Credits prior responses do not establish They do not provide a North Carolina collection agency permit number on the correspondence. They do not deny that the correspondence omits the permit number. They affirmatively decline to bring future correspondence into compliance, instead instructing me to contact a state office. They do not substantively address the 1692c ( b ) subject-line concern. They do not provide documentation of the source of, or consent associated with, the email address used to contact me, as called for under the email procedures of 12 C.F.R. 1006.6 ( d ) ( 4 ). Parallel filings I have filed a separate complaint with the NC Department of Insurance regarding the XXXX issue and a written dispute and notice-of-violation letter directly with Midland Credit by certified mail XXXX This CFPB complaint addresses the federal-law violations arising from the same underlying conduct. Fair Resolution ( " What would be a fair resolution? '' field ) I am requesting that Midland Credit Management , Inc. : 1. Delete the tradelines for MCM accounts # XXXX, # XXXX, # XXXX, and # XXXX from XXXX XXXX XXXX XXXX, as a remedy for the federal violations described above, and confirm deletion in writing. A debt collector that has communicated with me in non-compliance with the state licensing-disclosure law, and has affirmatively declined to come into compliance after notice, should not be furnishing information about the collection effort to consumer reporting agencies. 2. Identify, on the response itself, Midland Credits North Carolina collection agency permit number, and confirm in writing that all future correspondence with North Carolina debtors will include the permit number as required by XXXX. 3. Provide a substantive written response to the 1692e, 1692e ( 5 ), 1692e ( 10 ), and 1692f issues identified above not a reference back to prior correspondence. 4. Provide documentation showing the source from which Midland Credit obtained the email address used to contact me, and the consent ( or original creditors permissible transfer of consent under 12 C.F.R. 1006.6 ( d ) ( 4 ) ) authorizing electronic communications regarding these accounts. 5. Confirm that the email address previously used for collection communications has been removed from all systems and will not be re-enrolled. I am not requesting that the Bureau adjudicate the underlying debts, and I acknowledge that account no. XXXX was previously recalled by the seller and is not at issue. I am requesting that the Bureau require Midland Credit to address the specific federal violations identified above, which its two prior responses have not done. Supporting Documents to Upload Midland Credit response letter dated XXXX XXXX XXXX ( CFPB Case # XXXX ). Midland Credit response letter dated XXXX XXXX XXXX ( NC DOJ File No. XXXX ). Copy of the complaint filed with the NC Department of Insurance regarding the XXXX violation. Screenshots of email subject lines referenced in Issue 2, with dates.

Company response to consumer: Closed with explanation