Consumer complaint received 2025-01-19 00:00:00
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Sued you without properly notifying you of lawsuit
Company: ENCORE CAPITAL GROUP INC.
State: TX

Complaint narrative:
I am filing a complaint against Midland Credit Management for their illegal debt collection practices in the state of Texas. The details of the account and the issues are as follows : Debt Collector : Midland Credit Management Account Number : XXXX Balance Owed : {$6700.00} Nature of the Complaint : I am disputing a debt reported by Midland Credit Management. Despite my requests for them to validate the debt and their legal right to collect on it, they have failed to provide the necessary documentation. Additionally, Midland Credit Management is not licensed to collect debts in Texas.

Impact on Credit Score : The original debt was to XXXX, XXXX, acct XXXX, and they're already negatively reporting it as charged off on my credit report. The inaccurate reporting by Midland Credit Management is doubling the negative impact of the debt to me and has significantly damaged my credit score, causing me severe financial hardships.

Specifically, it has : - Affected my chances of getting a job in the financial industry which aligns with my profession.

- Limited my ability to purchase a home and car. 
- Made it difficult to rent property as my applications frequently get turned down.

- Prevented me from getting credit card approvals and from securing financial lines of credit - I can not even get approved for a debt consolidation loan to pay the original creditor off!

- Forced me to pay higher interest rates than I would have if my credit score were not so low. 
- Caused me to pay higher insurance premiums and be required to put down deposits for utility services and cell phone contracts- Dealing with these financial difficulties and the consequences of poor credit have led to significant stress and anxiety, affecting my overall well-being. 

Legal Action : Midland Credit Management has also filed a motion to enter default judgment against me in XXXX XXXX, Texas, Cause No. XXXX, XXXX XXXX, XXXX XXXX. This action has been taken despite their failure to provide adequate proof of the debt 's validity and their lack of proper licensing to collect debt in Texas, without my knowledge, and will surely cause me undue hardship and legal expenses to defend myself. 

Lack of Licensing : On XXXX, I searched for Midland Credit Management on the NMLS Consumer Access website and found that they are not licensed to collect debt in the state of Texas. Despite this, they have reported a collection account on my credit report, which is negatively impacting my credit score, and continue to report it as an open installment account with XXXX and XXXX, ( closed with XXXX, ) stating the account is seriously past due each month and as in collections. Each of these reporting agencies are reporting conflicting information regarding the date of last activity, creditor type, and account status and type. This is unacceptable! 

Failure to Provide Proof of Validity : I have repeatedly requested Midland Credit Management to provide proof of the validity of the debt and their right to collect on it. To date, they have failed to provide any documentation or evidence to substantiate these facts. 

Actions Taken : Verification of Licensing : On XXXX, I verified through the NMLS Consumer Access website that Midland Credit Management is not licensed to collect debt in Texas. 

Requests for Validation : On or about XXXX, I sent a written request to Midland Credit Management asking for validation of the debt. Despite multiple follow-ups, they have not provided any proof of the debt 's validity.

Company response to consumer: Closed with explanation