Consumer complaint received 2025-03-18 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: ENCORE CAPITAL GROUP INC.
State: NY

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am writing to complain about the inadequate handling of a credit report dispute by XXXX and the lack of transparent debt information from Midland Credit Management Inc. ( MCM ), potentially violating the Fair Credit Reporting Act ( FCRA )., FDCPA, and the Credit Card Accountability Responsibility and Disclosure Act of 2009 ( CARD Act ) I had a credit card account with XXXX  XXXX with a credit limit of {$400.00}. The account was closed, and the debt was subsequently transferred to Midland Credit Management Inc. ( MCM ). My credit report now inaccurately reflects a debt of {$800.00} for this account, which is more than double ( 100 % + ) the original credit limit. This sudden and substantial increase in the debt raises serious concerns about potential violations of consumer protection laws. 
On XX/XX/2025 I exercised my rights under the Fair Credit Reporting Act ( FCRA ) and filed a dispute with XXXX regarding this patently inaccurate debt amount. My dispute specifically questioned the lack of justification for the significant increase in the balance beyond the initial {$400.00} credit limit. 
In response to my dispute, MCM provided a report to XXXX. This report mentioned a nominal {$41.00} fee but failed to provide a comprehensive and verifiable explanation for the remaining substantial increase in the debt. This lack of transparency in the debt collection process by MCM may constitute a violation of the Fair Debt Collection Practices Act ( FDCPA ), which prohibits deceptive and unfair debt collection practices, including misrepresenting the amount of the debt. 
XXXX subsequently closed my dispute on XX/XX/2025 stating that the information was " verified. '' However, this verification appears to have been conducted without a reasonable reinvestigation, as mandated by Section 611 of the FCRA. XXXX did not provide me with any evidence or documentation substantiating the {$800.00} balance, nor did they adequately address the fundamental discrepancy between the credit limit and the reported debt. This suggests a failure by XXXX to fulfill their obligation to ensure the accuracy of credit report information and to conduct a thorough reinvestigation of disputed items, potentially violating the FCRA. 
Furthermore, the Credit Card Accountability Responsibility and Disclosure Act of 2009 ( CARD Act ) includes provisions regarding fees and charges associated with credit card accounts. The dramatic and unexplained increase in my debt with XXXX XXXX, far exceeding the credit limit, suggests a potential lack of transparency and fairness in the application of fees and interest, which may be inconsistent with the spirit and intent of the CARD Act, even though the account is now closed and in collections. 
My request for a clear and justifiable explanation for the inflated debt, made through the FCRA dispute process with XXXX, was not adequately addressed. The lack of transparency from MCM in explaining the debt and the inadequate investigation by XXXX constitute potential violations of the FCRA and raise concerns regarding compliance with the FDCPA and the principles of the CARD Act. My objective is the removal of this inaccurate debt from my credit report to ensure compliance with these consumer protection laws and to rectify the negative impact on my credit standing. 
With regards, XXXX.

Company response to consumer: Closed with explanation