Midland Credit Management, Inc or MCM is a debt collection agency which receives a lot of consumer complaints to our law firm for debt harassment. Find out who they are, why they might be calling, and how you can stop them.
What is Midland Credit Management?
Midland Credit Management , Inc. or MCM is a collection agency and partner in a conglomeration of financial organizations based in San Diego, CA. Complaints against MCM allege efforts to collect unverified debts; inappropriate communication, including threats; misrepresentation; and other violations of the Fair Debt Collections Practices Act (FDCPA). If you are concerned because you have been contacted by MCM, make sure you understand your rights before taking action.
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Is Midland Credit Management a scam?
They’re legit. Midland Credit Management is a legitimate debt collection agency located in San Diego, CA and employs “more than a thousand account managers around the world.” According to the Better Business Bureau (BBB), MCM was founded in 1953 and incorporated in 2000. The BBB opened its file on MCM in 1992. Buzzfile estimates Midland Credit Management’s annual revenue at $334.5 million and its headquarters staff at 1,800.
Midland Credit Management is a subsidiary of Encore Capital Group. Encore Capital Group is prominent in the consumer debt purchasing industry and also manages 5 other corporations, including Midland Funding LLC. MCM has also founded the Consumer Credit Research Institute (CCRI), “a ground-breaking effort to differentiate and describe financially distressed consumers through the application of modern behavioral science methods,” by employing experts from business and academia to study and understand their behavior.
Who does Midland Credit Management collect for?
Midland Credit Management is is a third party collector that specializes in debt purchasing. MCM buys delinquent accounts from a wide range of institutions nationwide, including retail, credit card issuers, healthcare, dental and a variety of banks, loan and financial services.
Unlike the websites of many collection agencies, MCM’s site is aimed directly at consumers and contains lots of information for people struggling with debt. MCM describes itself as “a company that helps consumers resolve past-due financial obligations…[by] empower[ing]…[them] through education and payment plans to help them return to a path toward improved financial health.” Their Help Center features a video explaining how MCM can “educate” consumers about financial literacy. They have posted a “consumer’s bill of rights” and a customer satisfaction survey. Consumer resources include the usual links to the credit reporting agencies and information about the FDCPA; but MCM also includes links to government programs for low-income households; food and healthcare assistance; and unemployment benefits.
Who are we? We are Lemberg Law, a Consumer Law Firm
Lemberg Law is a consumer law firm helping victims of collection harassment and abuse. We are ranked A+ by the BBB. We’ve helped more than 15,000 consumers stop harassment and recover money from debt collectors. Harassed? Abused? Misled by a collector? Call our Helpline today! There is no charge unless we win.
How many complaints are there against Midland Credit Management – MCM?
The Consumer Financial Protection Bureau (CFPB) lists over 400 complaints against Midland Credit Management . The BBB lists 449 complaints against Midland Credit Management in the past three years, with 123 in the past 12 months. There are also 48 negative customer reviews. MCM’s image as a self-service site for chronically poor, debt-ridden consumers who need to be educated about financial literacy has resulted in complaints alleging that customer service agents ask personal questions; talk down to consumers; or are simply non-responsive. The BBB lists four Notices of Government Action for overly aggressive collection and debt purchasing activity. Justia lists at least 54 cases of civil litigation naming MCM as the defendant, with several more pages naming Encore Capital and its affiliates as defendants.
Can Midland Credit Management Sue Me or Garnish My Wages?
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely MCM would sue you for a debt you may not owe or they cannot validate. However, debt collection agencies are known to have summoned debtors to court and garnish wages after a default judgement. Contacting an attorney BEFORE this could possibly happen would be a smart move. We’ve helped thousands of consumers fight back against unscrupulous debt collection harassers. Find out if we can help you too today!
In September 2015, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against Encore Financial Group and its affiliated business entities, including Midland Credit Management. The Order found that Encore and its affiliates, in the course of either purchasing delinquent debt or collecting delinquent debt, violated sections of the Consumer Financial Protection Act (CFPA); the Fair Debt Collections Practices Act (FDCPA); and the Fair Credit Reporting Act (FCRA). The Order identified Encore as a purchaser and collector of debt on a massive scale, and as one of the largest in the industry. Encore’s policy of competitive, for-profit, massive-scale debt purchasing and collection resulted in practices that routinely and deliberately avoided or even prohibited case-by-case examination of delinquent debt factors normally consistent with established legal and professional standards. For example, purchase agreements between Encore and debt sellers acknowledged that the balances owed on many of the accounts were approximations; that many of the accounts had passed statutes of limitations for litigation; or that the files otherwise contained inaccurate information.
Encore attempted to address these discrepancies simply by requesting from the debt sellers knowingly false statements that the account information had been previously verified by hard copy. Encore’s illegal collection activity included attempting to collect debts without a reasonable legal basis; filing lawsuits to force judgements against debtors who did not owe any money; knowingly filing against consumers legal affidavits containing false or misleading information; harassing consumers by making an excessive number of calls, sometimes more than 20 times in less than two days; and deliberately misrepresenting themselves by attempting to collect debts they knew the consumer did not owe, or refusing to acknowledge the validity of consumer disputes. The CFPB ordered hundreds of millions of dollars in fines, penalties, and restitution; and has required Encore to undergo a 5-year restructuring plan requiring strict reporting and monitoring of its business activities.
Here are some past Press Releases of Lawsuits Brought On By Lemberg Law Against MCM
April 13, 2017. On behalf of our client, Lemberg Law recently filed a complaint in U.S. District Court, Southern District of Texas. The case, against Midland Credit Management, charges the debt collection agency with violating federal law and asks for $1,000 in statutory damages under the Fair Debt Collection Practices Act, plus other relief.
It’s common for debt to get passed around from one collection agency to another collection agency. Sometimes, debt buyers purchase large blocks of debt, and then farm it out to debt collection agencies to collect. Our client says that MCM began calling her about a debt. She subsequently told them that she had already made payment arrangements with a previous debt collection company, and requested that Midland Credit Management send her a written collection letter via email. Following that conversation, the debt collection agency called our client at least two more times that same day and at least twice the next day. Our client says that MCM also called our client’s ex-husband and disclosed information about the debt to him.
This lawsuit charges that Midland Credit Management violated the Fair Debt Collection Practices Act (FDCPA) by contacting third parties for purposes other than to obtain location information; and by communicating with a third party about an alleged debt; by engaging in harassing behavior; and by using unfair and unconscionable means to collect a debt.
December 23, 2015. It is annoying when debt collection agencies call you repeatedly in an attempt to collect a debt. It is even more aggravating when the person the debt collector is calling isn’t even the person that the debt collector is trying to reach!
Our client claims that this is what happened to him. He alleges that MCM called him to try to collect a debt incurred by someone he didn’t know. He told the debt collector that it had the wrong number. However, our client claims that MCM called him three more times, even after he informed the debt collector that he wasn’t the person they were looking for.
Lemberg law has recently filed a suit on behalf of our client against Midland Credit Management. The suit was filed in U.S. District Court, Southern District of Indiana, and alleges that Midland Credit Management violated the Fair Debt Collection Practices Act by contacting our client on numerous occasions without his consent; by engaging in harassing behavior; by causing a phone to ring repeatedly to annoy and harass our client; and by using unfair and unconscionable means to collect a debt. It asks for statutory damages of $1,000, plus other relief.
Midland Credit Management Calling You?
Federal laws protect you. The Fair Debt Collections Practices Act (FDCPA) regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language; harassment; or the use of false or misleading information to collect a debt. The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act (TCPA) and the Consumer Financial Protection Act (CFPA).
Can I sue Midland Credit Management for harassment?
Yes. If you want to enforce your rights, or recover money for violations — you need to sue. Federal laws provide individuals like you with a means to seek monetary damages in court. For example, the FDCPA allows consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.
Consumers have reported this agency harassing them from the following numbers:
“I got my settlement check yesterday. Thank you all for helping me with my debt problem. The past year has been a really demanding one and this check is really going to help. So impressed by Lemberg Law.”
“Joann was so professional and helpful every time I had a question or needed help. Thank you so much for caring!”
“I have to admit, I was not sure of y’all initially but you proved me wrong. You not only got the calls to stop but you have the company to dismiss the accounts once and for all! Thank you so much! It had been more than I anticipated.”
Can You Help Me Delete Midland Credit Management from My Credit Report?
Chances are we can. Call us today and we’ll tell you how we can help.
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About the Author:
Sergei Lemberg is a lawyer whose practice focuses on consumer law, class actions and personal injury litigation. He has been repeatedly recognized as the “most active consumer attorney” in the country. In 2020, Mr. Lemberg represented Noah Duguid in the United States Supreme Court in the case entitled Duguid v. Facebook. He is the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.