Consumer complaint received 2025-04-19 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: MI

Complaint narrative:
This complaint concerns ongoing collection efforts by Midland Credit Management , Inc. ( MCM ) for a charged-off account originally from XXXX XXXX XXXX  XXXX XXXX. ( Account ending in XXXX, MCM Account # : XXXX ). 

Midland Credit Management is a wholly owned subsidiary of Encore Capital Group , Inc. As such, Encore is directly responsible for oversight of Midlands actions. I am including Encore Capital Group in this complaint due to their role in facilitating and allowing ongoing violations of the FDCPA, FCRA, and binding arbitration provisions. 

I previously submitted a complaint to the CFPB on XX/XX/XXXX under case number XXXX. In their response, Midland stated that they would remove the account from my credit report while the matter was being investigated. Despite this, on XX/XX/XXXX, I received a Pre-Legal Notification letter from Midland threatening potential litigation. 

This is highly improper and appears retaliatory in nature, given the unresolved status of the original complaint. Midland has ignored multiple requests for basic documentation, including : 1. Proof of ownership / chain of title They have not provided a valid bill of sale, assignment agreement, or any legal documentation proving that the account was properly transferred from XXXX XXXX XXXX  to Midland. This is critical to validate their legal right to collect. 
2. Proof the account was not securitized I have asked for evidence that XXXX XXXX XXXX  did not securitize or sell this account as part of a bundled financial instrument, which would strip themand by extension, Midlandof the right to collect. This request has been ignored entirely. 
3. Failure to honor arbitration clause The XXXX XXXX XXXX  cardholder agreement includes a binding arbitration clause, which I am electing to invoke. Under that agreement, neither XXXX XXXX nor its assignees ( Midland ) may threaten or pursue litigation without offering arbitration. Midland has never addressed this point, despite my raising it in prior communications.

By continuing to send collection notices suggesting legal actionwhile refusing to resolve the original dispute or provide legally required documentationMidland is violating the following laws : Violations of the Fair Debt Collection Practices Act ( FDCPA ) : 1. Section 807 ( 2 ) ( A ) - False or Misleading Representations Midland has falsely threatened legal action despite the unresolved nature of the dispute and without proper documentation proving their right to collect. This constitutes a violation of FDCPAs prohibition against false representations regarding the status of the debt. 
2. Section 809 ( a ) - Debt Validation Midland failed to provide proper validation of the debt as required under the FDCPA, despite multiple requests for documentation. They failed to provide the necessary proof of ownership, chain of title, or evidence of non-securitization.

3. Section 808 ( 1 ) - Harassment or Abuse Midlands actions in sending multiple collection notices with threats of legal action while refusing to resolve the dispute or provide documentation constitute harassment and abusive practices.

4. Section 811 - Communication with Third Parties While not directly applicable in this specific case, Midlands overall conduct in communicating threats of litigation and continuing collection efforts could indirectly be interpreted as potentially violating this section if they have made such threats to third parties without proper documentation. 

Violations of the Fair Credit Reporting Act ( FCRA ) : 1. Section 623 ( a ) ( 1 ) ( A ) - Duty to Report Accurate Information Midland is reporting inaccurate information on my credit report, failing to provide the necessary documentation to substantiate the debt. Their failure to validate the debt or update the reporting accurately is a violation of the FCRAs mandate to report only accurate information to credit bureaus.

2. Section 609 ( a ) ( 1 ) - Consumers Right to Information Under FCRA 609, consumers have the right to request specific details about the debt from the creditor. Midlands refusal to provide the requested documentation violates this consumer right.

3. Section 611 - Procedure in Case of Disputed Information Midland has failed to adequately investigate and resolve the dispute, as mandated by FCRA 611, which requires debt collectors to perform a reasonable investigation when an account is disputed by the consumer. Instead of investigating, they have continued with collection actions, disregarding my requests.

4. Section 623 ( b ) - Duty to Correct Information Midland is required to correct any inaccurate or incomplete information they report to credit bureaus. They have failed to address the inaccuracies in my credit report, even after being notified and given an opportunity to provide evidence to validate the debt.

Relief Requested : Immediate cessation of all collection activity related to this account Full validation of the debt, including proof of ownership and non-securitization Acknowledgment of and compliance with the binding arbitration clause in the original XXXX XXXX XXXX  agreement Confirmation that you will not re-report this debt to any credit bureau while this dispute remains open, as doing so would constitute a clear violation of the Fair Credit Reporting Act ( FCRA ) and a deceptive practice. 
Regulatory penalties and consumer compensation for continued emotional distress, credit harm, and deceptive collection practices Please see attached letter in response to Midlands renewed collection attempts. This account remains disputed and unvalidated. Their threat of legal action directly contradicts the arbitration clause of the original XXXX XXXX XXXX  agreement and their prior commitment to remove the account while under investigation. 

What a Complete Bill of Sale Should Include : 1. Identification of Parties Original Creditors Full Name ( e.g., XXXX XXXX XXXX, XXXX. ) Debt Buyers Full Legal Name ( e.g., Midland Credit Management or its parent XXXX XXXX XXXX ) 2. Account-Level Detail To validate my specific account, the bill of sale must include or be accompanied by : My full name and address at the time the account was opened or sold The original account number The charge-off balance Date of last payment Date of account sale or transfer Chain of assignment if the debt was sold more than once ( e.g., XXXX  XXXX XXXX Midland ) Important : If the document is a bulk transfer ( e.g., We sold XXXX accounts ), it must be accompanied by a portfolio appendix or affidavit identifying my specific account as part of the sale. 
3. Proof of Legal Right to Collect The bill of sale must explicitly state that the purchaser has the legal right to collect, enforce, or pursue legal action on the debt.

It should not just say we sold accountsit must give collection and enforcement rights for your specific debt.

4. Signatures and Dates Signed and dated by authorized representatives from both the original creditor and the debt buyer Electronic or digital signatures are acceptable only if verifiable 5. Supporting Documentation In addition to the bill of sale, the collector should also provide : A final statement or itemized account history Terms and conditions of the original contract ( including interest, fees, etc. ) Any prior account transfer documentation if there were multiple debt buyers Whats Not Acceptable : Generic affidavits claiming ownership without identifying my account A data sheet with my name and balance but no legal sale agreement A summary without dates, signatures, or account-specific linkage To prove a debt was not securitized, cups must provide ; 1. A Bill of Sale with Clear Ownership Chain It must show a direct assignment from XXXX XXXX XXXX  to Midland ( or a clear chain if it was transferred through multiple parties ). 
There should be no intermediary securitization trust or entity listed ( like XXXX XXXX XXXX XXXX or XXXX XXXX XXXX XXXX ). 
2. Affirmative Statement from the Original Creditor A declaration or affidavit from XXXX XXXX XXXX  stating that : This specific account was never included in any securitization trust The creditor retained legal ownership and the right to assign or collect the debt 3. Absence of Trust Documentation or Pooling Agreement Pooling and Servicing Agreements ( PSAs ) or Trust Prospectusesif none exist related to your account, its evidence that securitization didnt occur. 

Also attached is a XX/XX/XXXX letter from the Office of the Comptroller of the Currency ( Case # XXXX ), confirming that this issue was escalated to XXXX XXXX XXXX  through proper regulatory channels and remains unresolved. This supports my position that Midland has failed to provide legal proof of ownership and has resumed collection despite outstanding federal inquiries. 

I demand documentation affirming that this account was not sold as part of any securitized portfolio or placed into a trust or asset-backed security ( ABS ). If the account was securitized, the legal right to collect and enforce the debt no longer resides with XXXX XXXX XXXX  or its assigns, and any attempted enforcement or collection by Midland is a violation of federal consumer protection laws. 

Until such time that you can provide complete and legally sufficient proof of ownership and validation of this debt, you are to immediately cease all collection efforts, including threats of litigation or further communication. Continuing to pursue this account without resolving an active CFPB complaint is not only unethicalit may constitute a willful violation of federal law. 

Failure to comply with this request will result in additional regulatory complaints to the CFPB, the FTC, the FDCPA unit of the Department of Justice, and applicable state regulators. I reserve all rights and remedies under the law.

Company response to consumer: Closed with explanation