Midland Funding, Encore Capital Group, Asset Acceptance Sued for Violating Consent Order

CFPB Sues Encore Capital Group, Midland Funding, Midland Credit Management, and Asset Acceptance Capital Corp for Collecting Debts Beyond Statute of Limitations without disclosing debts were uncollectable, and other illegal acts

On September 8, 2020, the Consumer Financial Protection Bureau (Bureau) filed suit in federal district court in the Southern District of California against Encore Capital Group, Inc., and its subsidiaries, Midland Funding, LLC; Midland Credit Management, Inc.; and Asset Acceptance Capital Corp. The companies are headquartered in San Diego, California and together comprise the largest debt collector and debt buyer in the United States, with annual revenue exceeding $1 billion and annual net income exceeding $75 million. Encore and its subsidiaries are currently subject to a 2015 consent order with the Bureau based on the Bureau’s previous findings that they violated the Consumer Financial Protection Act (CFPA), Fair Debt Collection Practices Act (FDCPA), and the Fair Credit Reporting Act. The Bureau alleged that Encore and its subsidiaries have violated the terms of this consent order and again violated the FDCPA and CFPA. On October 15, 2020, the Bureau filed a proposed stipulated final judgment and order to settle the lawsuit. If entered by the court, the stipulated final judgment and order will require Encore and its subsidiaries to pay $79,308.81 in redress to consumers and a $15 million civil money penalty. The settlement will also require Encore and its subsidiaries to make various material disclosures to consumers, refrain from the collection of time-barred debt absent certain disclosures to consumers, and abide by certain conduct provisions in the 2015 consent order for five more years.
RELATED DOCUMENTS

• Complaint 
• Stipulated final judgment and order 

.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important;margin-bottom:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important;margin-bottom:10px!important;}}MUSINGS BY DIANE:Midland Funding and Asset Acceptance Capital are in the news AGAIN.  In 2015 Encore and its subsidiaries (including Midland Funding and Asset Acceptance) signed a consent order acknowledging that they were suing consumers without providing the required loan documentation.  These companies were knowingly suing consumers on debts that were noncollectable (beyond the statute of limitations). They promised not to continue with these illegal acts.  Well, so much for promises – they continued these illegal acts. 
You can bet that the complaints the CFPB and FTC know about are just the tip of the iceberg, because most consumers don’t know that many debt collectors are using illegal tactics to collect on debts, that may not even be their debts, or are completely uncollectable.

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