Consumer complaint received 2026-01-06 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: VA

Complaint narrative:
I am submitting this complaint regarding Midland Credit Managements continued collection and credit reporting of a charged-off XXXX XXXX XXXX  account XXXX 

While I acknowledge the account originated with me, Midland Credit Managements handling of this account raises serious concerns under multiple federal consumer protection laws due to improper credit reporting, excessive or unauthorized fees, contractual violations, disproportionate harm, and ongoing coercive collection practices.

1. Unfair and Deceptive Practices FDCPA ( 15 U.S.C. 1692 ) Midland Credit Management has engaged in conduct that constitutes unfair and deceptive debt collection practices, including but not limited to : Attempting to collect amounts that exceed what was expressly authorized by the original credit agreement or permitted by law, in violation of 15 U.S.C. 1692f ( 1 ).

Failing to clearly and consistently explain how the current balance was calculated, including interest, fees, or other add-ons applied after charge-off.

Continuing collection activity and credit reporting in a manner that is punitive rather than remedial, despite the debt having already been charged off and sold.

2. Misrepresentation of the Legal Status and Amount of the Debt FDCPA ( 15 U.S.C. 1692e ) Midland Credit Managements reporting and communications may misrepresent : The character and legal status of the debt, in violation of 15 U.S.C. 1692e ( 2 ) ( A ). 
The amount of the debt owed, due to the inclusion of interest, fees, or costs not clearly authorized by the original XXXX XXXX XXXX  cardholder agreement or applicable law. 
The implication that continued non-payment carries consequences beyond what is legally permissible for a charged-off, sold account.

3. Harassment and Abuse FDCPA ( 15 U.S.C. 1692d ) Midland Credit Management has engaged in repeated and unwanted collection efforts that constitute harassment, including excessive or persistent communications that cause stress and anxiety and serve no legitimate purpose beyond pressuring payment. 

Even when contact is otherwise lawful, repeated or coercive collection efforts can violate XXXX XXXX. XXXX when they are excessive, abusive, or used in conjunction with negative credit reporting as leverage. 



XXXX. Inaccurate and Unverifiable Credit XXXX FCRA ( XXXX XXXX. XXXX ) Midland Credit Management continues to report this account to consumer reporting agencies despite serious concerns regarding accuracy and completeness, including : Failure to ensure maximum possible accuracy of the reported balance, in violation of XXXX XXXX. XXXX ( b ). 
Reporting information that can not be fully substantiated with original account-level documentation, including a complete and itemized accounting of post-charge-off interest and fees. 
Continuing to report this collection while simultaneously offering settlement at significantly reduced amounts, which calls into question the legitimacy of the reported balance and the fairness of continued reporting. 



XXXX. Failure to XXXX a Reasonable Investigation FCRA ( XXXX XXXX. XXXX ( b ) ) When disputes are raised, furnishers are required to conduct a reasonable investigation. Merely confirming basic account identifiers without verifying the legality of post-charge-off fees, interest, and continued reporting practices does not satisfy this statutory obligation. 



XXXX. Violation of the Original Credit Agreement and Contract Principles Once the account was charged off and sold : The original XXXX XXXX Bank agreement no longer authorizes the assessment of new interest or fees unless explicitly permitted by the contract and applicable state law. 
Any amounts added beyond the charge-off balance XXXX constitute impermissible post-charge-off charges. 
Midland Credit Management has not demonstrated contractual authority to assess or collect the full amount currently being reported. 



XXXX. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Dodd-Frank Act ( XXXX U.S.C. XXXX ) Midland Credit XXXX conduct XXXX constitute XXXX violations due to : XXXX to report a collection account long after charge-off in a manner that disproportionately harms consumers. 
Using credit reporting as leverage to coerce payment rather than as accurate, forward-looking risk information. 
Failing to offer deletion upon resolution while continuing to benefit from prolonged negative reporting. 



XXXX. Concrete and Ongoing Consumer Harm Midland Credit XXXX continued reporting of this account has caused and continues to cause tangible harm, including : Ongoing suppression of my XXXX XXXX beyond the original charge-off event Reduced access to affordable credit and financial opportunities Reputational harm due to repeated negative reporting Disproportionate punishment given that the debt has been sold and is being offered for settlement at a substantially reduced amount This harm is cumulative, ongoing, and unreasonable relative to the nature and status of the debt. 



XXXX. Disproportionate Impact and Lack of Legitimate Purpose Once a debt has been charged off and sold, continued credit reporting by a third-party debt buyer serves little legitimate consumer or market purposeparticularly where the debt buyer is offering steeply discounted settlements. 

In this context, continued reporting functions primarily as coercive leverage rather than accurate credit information, rendering the practice unfair and abusive under federal consumer protection standards. 



XXXX. XXXX XXXX and XXXX XXXX Midland Credit Management XXXX XXXX XXXX XXXX sophisticated debt buyer subject to ongoing regulatory oversight. The practices described raise concerns not only about this individual account but also about potential systemic issues related to post-charge-off fee practices and credit reporting policies. 

I am requesting CFPB review to determine whether these practices comply with federal consumer protection laws applicable to debt buyers and furnishers of credit information.

Company response to consumer: Closed with explanation