Encore Capital Group and its subsidiary Midland Credit Management (MCM) have developed a notorious reputation for aggressive debt collection tactics. With numerous consumer complaints and lawsuits brought against them, you should proceed cautiously if contacted by these companies.
Encore Capital Group is one of the largest debt buyers in the country, purchasing portfolios of delinquent or defaulted consumer debts from banks and creditors. The company operates through subsidiaries like MCM to collect on the debts it acquires. However, many people accuse them of using predatory practices to pursue profits.
Violations of Consumer Protection Laws
One major issue is that Encore Capital and MCM have been accused of violating consumer protection laws like the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA). In 2015, the Consumer Financial Protection Bureau (CFPB) sued the companies for allegedly using deceptive tactics to collect old debts that were inaccurate or unverified.
The CFPB also asserted that MCM made harassing collection calls, misrepresented information to consumers, and collected payments on debts past the statute of limitations. These types of practices violate federal consumer protection laws.
Inaccurate and Abusive Collection Attempts
Beyond legal violations, many consumers have lodged complaints about receiving phone calls or letters attempting to collect debts that were already paid, inaccurate, or not even theirs. The BBB has given MCM an “F” rating, with reviews describing abusive collection attempts.
Some people accuse the agency of continuing collection efforts after receiving proof that the debt info was incorrect. These types of errors can damage credit scores and cause significant stress.
What Happens if I Avoid Encore Capital or MCM?
Typically, avoiding a debt collector will only make matters worse. If you act quickly, you can request verification of the debt to confirm it is legitimate. However, ignoring contact attempts may result in a lawsuit or a hit to your credit.
What Are My Rights With Debt Collectors?
You have protections against harassment under the Fair Debt Collection Practices Act. This law prohibits tactics like:
- Frequent or repeated calls in a day
- Calls at odd hours
- Offensive language
- False threats of arrest or legal action
- Contacting employers or family
You also can dispute errors with credit bureaus under the Fair Credit Reporting Act. Inaccurate info must be investigated and corrected.
Aggressive Harassment Tactics
Despite these protections, many individuals report being bombarded with frequent, repeated calls from MCM collectors at all hours of the day and night. They describe threatening language, constant calls to family or coworkers, and false statements made to collect debts. This harassment crosses the line into unethical behavior.
How Can a Credit Lawyer Assist?
If you feel harassed or wrongfully pursued by Encore Capital or MCM, don’t ignore it. Consult a lawyer to understand your rights and formulate a response strategy. An experienced credit attorney can help you stop the collections harassment.
Contact a Consumer Law Firm Today
If your financial future feels at risk, contact a consumer law firm for help addressing the issue. Schedule a consultation to discuss your situation and legal options. With knowledgeable legal guidance, you can resolve your debt collection dispute.