Consumer complaint received 2025-08-10 00:00:00
Product: Debt collection — Credit card debt
Issue: Communication tactics — Frequent or repeated calls
Company: ENCORE CAPITAL GROUP INC.
State: TX

Complaint narrative:
CFPB Rules Violations by Midland Credit Management I. Violations of CFPB Rules A. Failure to Provide Accurate Validation Notices ( 1006.34 ) Who : Midland Credit Manag

ement ( MCM ), acting as a debt collector, failed to provide accurate validation notices to consumers. What : Validation notices sent by MCM did not meet CFPBs require ments under 1006.34. Specifically : Notices lacked required disclosures such as the name of the original creditor, the amount owed, and clear instructions on how to dispute the debt.

The notices were vague and did not provide sufficient information for consumers to exercise their legal rights.

When : The violations occurred during communications initiated by MCM after consumers were contacted about their debts. MCMs Privacy Notice and State Disclosures document ( updated XX/XX/XXXX ) outlines their communication practices but fails to align with CFPBs validation notice requirements. 

Where : This issue arises in MCMs debt collection process, as detailed in their Terms & Conditions and Privacy Notice documents. Consumers receive these notices via mail or electronic communications. 

Why : Failure to provide accurate validation notices deprives consumers of the ability to dispute debts effectively or request information about the original creditor. This lack of transparency is a direct violation of CFPB Regulation F.

How : MCMs validation notices omit key information required under 1006.34. The Privacy Notice document mentions that MCM collects and uses financial information but fails to disclose how consumers can dispute debts or obtain validation notices with the required details.

B. Improper Collection of Time-Barred Debts ( 1006.26 ) Who : Midland Credit Management ( MCM ), acting as a debt collector, pursued time-barred debts without proper disclosures. 

What : MCMs Terms & Conditions document ( updated XX/XX/XXXX ) does not include clear language about time-barred debts. Consumers reported receiving communications from MCM that : Implied legal action could be taken on debts that were beyond the statute of limitations. 
Failed to disclose that the debts were time-barred and that consumers were not legally obligated to pay them. 
When : These violations occur during MCMs debt collection process, specifically when contacting consumers about debts that are past the statute of limitations.

Where : The issue arises in MCMs communications with consumers, as outlined in their Terms & Conditions and Privacy Notice documents. MCMs debt collection practices are governed by CFPB rules, but their policies fail to comply with 1006.26.

Why : Pursuing time-barred debts without proper disclosures misleads consumers into believing they are legally obligated to pay. This violates CFPB rules and harms consumers by creating confusion and undue pressure.

How : MCMs communications omit required disclosures about time-barred debts, violating 1006.26. The Privacy Notice document mentions debt collection practices but does not address time-barred debts or provide the required disclosures.

C. Harassing, Oppressive, or Abusive Conduct ( 1006.14 ) Who : Midland Credit Management ( MCM ), acting as a debt collector, engaged in harassing and abusive conduct.

What : MCMs Terms & Conditions document includes vague disclaimers about communication practices but fails to prevent harassing conduct. Consumers reported : Receiving multiple calls per day, including calls at inconvenient times.

Threatening language used during communications to intimidate consumers into paying.

When : These violations occur during MCMs debt collection process, specifically when contacting consumers via phone or electronic communications.

Where : The issue arises in MCMs communication practices, as outlined in their Terms & Conditions and Privacy Notice documents. These practices violate CFPB rules under 1006.14.

Why : Harassing and abusive conduct causes emotional distress to consumers and violates CFPB rules designed to protect consumers from such behavior.

How : MCMs communication practices fail to comply with 1006.14. The Terms & Conditions document mentions communication methods but does not address harassment or provide safeguards against abusive conduct.

D. False, Deceptive, or Misleading Representations ( 1006.18 ) Who : Midland Credit Management ( MCM ), acting as a debt collector, made false and misleading representations during debt collection efforts.

What : MCMs Terms & Conditions document includes vague language about debt amounts and dispute resolution. Consumers reported : Notices that inflated the amount owed or included unauthorized fees.

Communications that implied immediate legal action would be taken if payment was not made, even when such action was not possible.

When : These violations occur during MCMs debt collection process, specifically when contacting consumers about their debts.

Where : The issue arises in MCMs communications with consumers, as outlined in their Terms & Conditions and Privacy Notice documents. These practices violate CFPB rules under 1006.18.

Why : False and misleading representations harm consumers by creating confusion and undue pressure to pay inflated or unauthorized amounts.

How : MCMs communications include false and misleading representations, violating 1006.18. The Terms & Conditions document mentions dispute resolution but fails to address deceptive practices or provide safeguards against misleading representations.

E. Failure to Retain Records ( 1006.100 ) Who : Midland Credit Management ( MCM ), acting as a debt collector, failed to retain adequate records of debt collection communications and consumer disputes.

What : MCMs Privacy Notice document mentions data collection but does not address record retention. Consumers reported : MCM could not provide documentation of prior communications or validation notices during disputes.

Lack of record retention impacted consumers ability to resolve disputes and assert their rights.

When : These violations occur during MCMs debt collection process, specifically when consumers request documentation during disputes.

Where : The issue arises in MCMs record retention practices, as outlined in their Privacy Notice and Terms & Conditions documents. These practices violate CFPB rules under 1006.100.

Why : Failure to retain adequate records deprives consumers of evidence to resolve disputes and assert their rights under CFPB rules.

How : MCMs record retention practices fail to comply with 1006.100. The Privacy Notice document mentions data collection but does not address record retention or provide safeguards against inadequate practices.

II. Harm Caused to Consumers Financial Harm : Consumers were pressured into paying time-barred debts and inflated amounts due to misleading communications and improper disclosures.

Emotional Distress : Harassing and abusive conduct caused emotional distress and anxiety for consumers.

Loss of Consumer Rights : Failure to provide accurate validation notices and disclose rights deprived consumers of their ability to dispute debts effectively.

III. Requested Action Federal Agencies : Submit complaints to the CFPB for violations of Regulation F, including failure to provide validation notices, improper pursuit of time-barred debts, and abusive conduct.

Independent Audits : Conduct audits of MCMs compliance with CFPB rules, focusing on validation notices, record retention, and communication practices.

Penalties and Enforcement : Impose financial penalties on MCM for systemic violations of CFPB rules.

Require MCM to implement corrective measures, including improved compliance systems and consumer disclosures.

Restitution for Consumers : Provide restitution to affected consumers for financial harm, emotional distress, and loss of rights.

IV. Conclusion Midland Credit Management has repeatedly violated CFPB rules under Regulation F, causing harm to consumers and undermining federal standards for debt collection practices. Regulatory action is necessary to hold MCM accountable and protect consumer rights. This complaint provides detailed evidence of violations and requests immediate enforcement by the CFPB.

Company response to consumer: Closed with non-monetary relief