Consumer complaint received 2016-09-08 00:00:00
Product: Debt collection — Credit card
Issue: False statements or representation — Attempted to collect wrong amount
Company: ENCORE CAPITAL GROUP INC.
State: CA

Complaint narrative:
XX/XX/XXXX, I was sued by Midland Funding LLC ( " MCM '' ), a subsidiary of Encore Capital, for the unpaid XXXX XXXX, debt which was jointly incurred by my former husband and I but was in my name. Before MCM filed a lawsuit, I attempted to settle the matter with them explaining that I was going through difficult divorce, financial hardship and health issues. MCM did not care about any of this and filed a lawsuit anyway. After XXXX hearings, I felt MCM took advantage of me since I could not afford an attorney and I was XXXX XXXX at that time. MCM literally got me to accept their full terms and give them a first payment before I even had a chance to review their proposed paper work. I also learned recently that MCM took my first payment before it even prepared my settlement agreement and filed a conditional settlement notice with the Court. Additionally, MCM failed to comply with California Rule of Court 3.1385 by failing to immediately alert the Court regarding the settlement. 
XX/XX/XXXX, my consultant XXXX XXXX XXXX and I reached a final agreement with MCM to settle the outstanding balance. We indicated, both verbally and via email, that our intention was to make an immediate payment in exchange for a prompt dismissal of the pending litigation. MCM attorney XXXX XXXX XXXX agreed to these terms in her XXXX XXXX, XXXX, settlement offer letter and the following correspondence. 
After XXXX XXXX contacted XXXX XXXX ' office 45 days after the settlement pursuant to California Rule of Court 3.1385, she stated to him that the dismissal was filed and she was waiting on the Court to dismiss the case. XXXX XXXX followed up with XXXX XXXX few days later and her answer was still the same. At that time, we contacted the Court directly and learned that no dismissal paper work was filed. XXXX XXXX lied to us and her untruthfulness was later confirmed by her attempting to backdate the dismissal a copy of which we have on our file. 
As a part of MCM 's and XXXX XXXX ' untruthfulness, their negligent actions and their failure to comply with California Rules Of Court 3.1385 to timely dismiss the Court case, XXXX XXXX and I had to expend additional time and resources to work on the settlement reimbursement with my former spouse. When we brought the late filing issue to the attention of MCM and XXXX XXXX, she threatened to go after me for the balance discharged as a part of the settlement. 
In good faith, I had made timely payments to comply with the settlement terms and yet, once MCM received my final payment, it reneged on the terms of its own settlement letter. Furthermore, MCM failed to comply with California Rules Of Court and later attempted to cover up its negligent actions. I truly hope that your office conducts its own objective investigation in this matter to prevent MCM from harming consumers who, in good faith, comply with their settlements with MCM while MCM feels entitled to renege causing consumers to incur additional expenses.

Company response to consumer: Closed with explanation