Debt collectors
Midland Credit Management
A letter or a call from Midland Credit Management usually means an old account has been sold or passed on. Here is who Midland is, why it may be contacting you, your rights, and your options.
Who is Midland Credit Management?
Midland Credit Management is a debt collector. It says so on its own website (MCM company site, opens in a new tab), where it describes itself as a subsidiary of Encore Capital Group that services accounts lenders have charged off.
The CFPB orders against the group name Encore Capital Group, Midland Funding and Midland Credit Management together. If a letter or a court paper says Midland Funding, it is part of the same group (CFPB, opens in a new tab).
In 2015 the CFPB found the group had used robo-signed court filings (CFPB, opens in a new tab) and sued on debts past the statute of limitations. In 2020 it sued again for breaking that order, and a court entered a $15 million penalty (CFPB, opens in a new tab). None of that makes your debt invalid, but it is a good reason to check every detail.
Why is Midland contacting you?
Usually because an account you had with another company went unpaid, was charged off, and ended up with Midland. The name may be new to you, but the debt is often an old credit card or loan. The first letter should tell you whose account it was.
Check the validation notice (CFPB, opens in a new tab) against your own records before you pay or promise anything.
- The creditor the debt was owed to, and the account number.
- The amount on a set date, and any interest, fees, payments or credits since.
- The date your 30-day dispute window ends.
- How to dispute the debt, in writing.
What are your rights when Midland calls or writes?
The Fair Debt Collection Practices Act and the CFPB’s Regulation F (CFPB, opens in a new tab) apply to Midland like any other debt collector. These are the rights people use most.
- You get a written validation notice, in the first contact or within five days of it (CFPB (CFPB, opens in a new tab)).
- You have 30 days to dispute the debt in writing. The collector must then stop collecting until it sends you verification (15 U.S.C. 1692g (Cornell LII, opens in a new tab)).
- Calls before 8 a.m. or after 9 p.m. are not allowed unless you agree (FTC (FTC, opens in a new tab)).
- More than seven calls in seven days about one debt is presumed to be harassment (12 CFR 1006.14 (eCFR, opens in a new tab)).
- You can ask a collector in writing to stop contacting you. The debt still exists, and the collector can still sue.
- A collector cannot sue or threaten to sue on a debt past the statute of limitations (CFPB (CFPB, opens in a new tab)).
If a caller will not send a written notice, or asks you to pay by gift card or wire, treat it as a possible scam and do not pay.
Can you settle a Midland account for less?
Often, yes. Collectors frequently agree to less than the full balance, especially for a lump sum. How much less depends on the account and the collector, and nothing is certain.
Before you pay, check how old the debt is. A payment, or even agreeing that you owe an old debt, may restart the clock (CFPB, opens in a new tab) on the statute of limitations.
- Get the settlement terms in writing before any money moves.
- Make sure the letter says the payment settles the account in full.
- Pay from an account you control, never by gift card or wire.
- Keep the letter and your proof of payment.
- Expect a possible Form 1099-C (IRS, opens in a new tab) if $600 or more is forgiven.
If you have been sued, do not ignore it. Answer by the court deadline, and consider finding a lawyer (CFPB, opens in a new tab).
What would Clear Financial do with a Midland account?
If you have $10,000 or more of unsecured debt in total, a Midland account can be enrolled with your other debts. We would ask Midland to validate the debt first, then negotiate it like any other account, and you would approve any settlement before a dollar is paid1.
If Midland has already sued you, talk to an attorney about the case. We do not give legal advice, and settlement does not stop a lawsuit on its own.
Things you should know
The downsides, stated plainly.
Read these before you enroll anywhere, including with us. They apply to every debt settlement program.
- Your credit score will drop during the program, and late payments stay on your credit report.
- Creditors may keep collecting while you save, and they can sue. The program does not stop legal action.
- Interest and late fees can keep adding to your balances until each account settles.
- Forgiven debt may be taxable income. A creditor may send you IRS Form 1099-C.
- Fees apply. The fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached.
- Not all creditors agree to settle, and not everyone completes the program.
- We do not guarantee any amount, percentage or timeline.
- Debt settlement is not available in all states. We are not a nonprofit or a credit counseling service, and we do not lend money.
- We do not give legal or tax advice. Talk to an attorney or a tax professional about your situation.
Notes on the figures and claims above
- 1Whether an account settles, and for how much, depends on the collector and the account. Not all debts settle. A settled account is reported as settled for less than the full balance, and forgiven debt may be taxable. Fees apply to accounts settled through our program.
Straight answers
Midland Credit Management, straight answers.
Rather hear it from a person? 866-659-7966
Is Midland Credit Management a real company?
Yes. It is a debt collector owned by Encore Capital Group. Scammers sometimes use real collectors’ names, so ask for the written validation notice before you pay.
Can Midland sue me?
Yes, if the debt is valid and within the statute of limitations in your state. If you are served, respond by the court deadline and consider talking to a lawyer.
Will Midland settle for less than I owe?
Often, especially for a lump sum, but nothing is guaranteed. Get any agreement in writing before you pay.
Does paying Midland restart the statute of limitations?
It can. A partial payment, or admitting you owe an old debt, may restart the time period. Check the age of the debt first.
Sources
Where the facts on this page come from. Each link opens the original in a new tab.
- 01 MCM company site Who is MCM? Midland Credit Management describes itself (opens in a new tab)
- 02 CFPB CFPB takes action against the two largest debt buyers for using deceptive tactics to collect bad debts (Sept. 9, 2015) (opens in a new tab)
- 03 CFPB Enforcement action: Encore Capital Group, Midland Funding, Midland Credit Management and Asset Acceptance Capital Corp. (2015 consent order) (opens in a new tab)
- 04 CFPB Enforcement action: Encore Capital Group et al. (2020 lawsuit and stipulated judgment) (opens in a new tab)
- 05 CFPB What information does a debt collector have to give me about a debt? (opens in a new tab)
- 06 Cornell LII 15 U.S. Code 1692g: Validation of debts (opens in a new tab)
- 07 CFPB Regulation F (12 CFR Part 1006): Fair Debt Collection Practices Act (opens in a new tab)
- 08 eCFR 12 CFR 1006.14: Harassing, oppressive, or abusive conduct (call frequency) (opens in a new tab)
- 09 FTC Debt Collection FAQs (opens in a new tab)
- 10 CFPB Can debt collectors collect a debt that’s several years old? (opens in a new tab)
- 11 CFPB How do I find a lawyer to help me with a creditor or collector? (opens in a new tab)
- 12 IRS About Form 1099-C, Cancellation of Debt (opens in a new tab)
Next step
More than one account in collections?
Check your state and see an illustrative estimate across all your unsecured debt, fee included. Nothing is signed until you say yes.
Four short steps
Your estimate first. Contact details last.
- 1How much you owea close guess is fine
- 2What kinds of debtpick all that apply
- 3Which state you live inchecked before anything else
- 4Your estimate, then a real person if you want one