Consumer complaint received 2026-05-18 00:00:00
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: ENCORE CAPITAL GROUP INC.
State: NC

Complaint narrative:
CONSUMER FINANCIAL PROTECTION BUREAU ( CFPB ) CONSUMER COMPLAINT SUBMISSION Date : XX/XX/XXXX COMPLAINANT INFORMATION Name : XXXX XXXX XXXX Address : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NC XXXX COMPANIES COMPLAINED ABOUT XXXX. Midland Credit XXXX XXXX XXXX Debt Collector XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX CA XXXX Parent Company : Encore Capital Group , Inc. XXXX XXXX XXXX XXXX ) Phone : XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, OR XXXX ACCOUNT INFORMATION Original Account Number : Ending in XXXX MCM Account Number : XXXX Original Creditor : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Current Servicer/Owner : Midland Credit Management , Inc XXXX Date Account Opened : XX/XX/XXXX Date of Charge-Off : XX/XX/XXXX Balance Claimed by MCM : {$1700.00} Estimated Actual Purchases : Approximately {$800.00} NOTE : RELATED HOUSEHOLD COMPLAINT Please note that my spouse, XXXX XXXX XXXX XXXX has filed a concurrent CFPB complaint against Midland Credit Management regarding a separate Indigo credit card account ( MCM # XXXX ). Both accounts involve the same pattern of predatory fee-harvester credit products and the same FDCPA violations by MCM. We are filing separately as the accounts are individual but request that the complaints be reviewed together as they reflect a pattern of conduct by MCM against the same household. COMPLAINT SUMMARY This complaint concerns two related issues : ( XXXX ) predatory and unfair fee practices by the original creditor, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) ; and ( 2 ) false, misleading, and deceptive debt collection practices by Midland Credit Management , Inc. ( MCM ) in violation of the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq. Issue XXXX : Predatory Fee Structure Unfair, Deceptive, and Abusive Acts or Practices ( UDAAP ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) was issued with the following fee structure : Monthly maintenance fee : {$19.00} ( $ XXXX ), charged regardless of card usage Late fees : up to {$41.00} per billing cycle Purchase APR : 35.90 % In calendar year XXXX alone, {$600.00} in fees and {$390.00} in interest were assessed on this account. My actual purchases were approximately {$800.00}. The total claimed balance of {$1700.00} on a {$1000.00} credit limit card is overwhelmingly composed of fees and interest, not purchases. This fee structure is designed to extract fees from vulnerable consumers in a manner that makes debt repayment practically impossible, constituting an unfair, deceptive, and abusive practice under 12 U.S.C. 5531. Issue 2 : FDCPA Violations by Midland Credit Management , Inc. Violation A False Representation of Debt Character, 15 U.S.C. 1692e and 1692e ( 2 ) ( A ) : MCM 's collection letter dated XX/XX/XXXX explicitly states " Accrued Interest : {$0.00} '' and " Accrued Fees : {$0.00}, '' while simultaneously claiming a balance of {$1700.00} characterized as the " Original Purchase Balance. '' This is false. The balance is composed substantially of fees and interest not purchases. This misrepresentation violates 15 U.S.C. 1692e and 1692e ( 2 ) ( A ). Violation B Unfair Collection Practices, 15 U.S.C. 1692f : Attempting to collect {$1700.00} the overwhelming majority of which represents fees and compounding interest from a predatory credit product rather than actual consumer purchases constitutes an unfair or unconscionable means of collecting a debt under 15 U.S.C. 1692f. Violation C Inadequate Debt Validation, 15 U.S.C. 1692g : MCM 's validation response does not provide an itemized breakdown separating actual purchases from fees and interest. Presenting a fee-laden balance as a single undifferentiated " purchase balance '' figure prevents the consumer from meaningfully evaluating the validity of the debt, failing the requirements of 15 U.S.C. 1692g. Issue 3 : Credit Reporting Concerns FCRA MCM is currently reporting this account to the credit reporting agencies. Reporting a balance that is materially misrepresented in amount and character and that has now been formally disputed may constitute a violation of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2. I am requesting that adverse reporting be suspended during the pendency of this complaint. MCM 'S DOCUMENTED PATTERN OF VIOLATIONS CFPB COMPLAINT DATA The violations described in this complaint are not isolated incidents. A review of CFPB complaint data specific to Midland Credit Management , Inc. reveals a clear and escalating pattern of the same conduct alleged here : Explosive Growth in Complaints Post-Consent Order : XXXX : XXXX CFPB complaints XXXX : XXXX CFPB complaints XXXX : XXXX CFPB complaints XXXX : XXXX CFPB complaints This represents a 500 % increase in complaints between XXXX and XXXX occurring after the CFPB 's own XXXX consent order required MCM to reform its practices and pay {$52.00} XXXX in penalties and consumer relief. The escalating complaint volume demonstrates that MCM 's conduct has not been corrected and that the consent order has failed to deter ongoing violations. My Violations Match MCM 's Top Complaint Categories : According to CFPB complaint data, the top issues reported against MCM are : # 1 : " Attempts to collect debt not owed '' 18 complaints # 2 : " Incorrect information on credit report '' 9 complaints # 3 : " Written notification about debt '' 9 complaints # 5 : " False statements or representation '' 8 complaints # 6 : " Took or threatened negative or legal action '' 8 complaints The violations I am reporting misrepresentation of the debt 's character and amount ( false statements ), failure to provide adequate debt validation ( written notification ), and collection of a balance that does not represent goods or services received ( debt not owed ) correspond directly to the top three complaint categories in MCM 's own CFPB complaint history. This is not a coincidence ; it is a pattern. I respectfully request that this complaint be reviewed in the context of MCM 's prior consent order, its documented escalating complaint volume, and the alignment of my specific violations with MCM 's most frequently reported conduct. This pattern warrants heightened regulatory scrutiny. NOTICE OF CONCURRENT LEGAL ACTION I have sent a formal dispute and FDCPA violation notice to MCM via certified mail. I am prepared to file suit in the United States XXXX XXXX for the XXXX XXXX XXXX North Carolina pursuant to 15 U.S.C. 1692k if these matters are not resolved, seeking statutory damages of up to {$1000.00} per violation, actual damages, and costs. REQUESTED RELIEF 1. Investigation of the Milestone card fee structure for UDAAP violations ; 2. Investigation of MCM 's FDCPA violations as described above ; 3. That MCM provide a complete itemized accounting of the debt separating purchases from fees and interest ; 4. Immediate suspension of adverse credit reporting during this dispute ; 5. That the collectible balance be reduced to reflect only actual purchases made ( approximately {$800.00} ), with all fees and interest assessed through an unfair and predatory scheme waived in full. SUPPORTING DOCUMENTS AVAILABLE MCM collection letter dated XX/XX/XXXX ( containing contradictory fee/interest representations ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX account statements for multiple billing cycles ( provided by MCM ) Formal FDCPA dispute letter sent to MCM dated XX/XX/XXXX CFPB complaint data reflecting MCM 's escalating pattern of violations ( XXXX ) I declare that the foregoing is true and correct to the best of my knowledge. XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation