Midland Credit Management (MCM), a subsidiary of Encore Capital Group, stands as one of the largest debt buyers and collectors in the United States. Specializing in purchasing charged-off debts from original creditors, MCM often pursues legal action to recover these debts. This article delves into recent developments and legal proceedings involving MCM, providing insights into their operations and the implications for consumers.
Recent Legal Actions and Settlements
- Ongoing Debt Collection Lawsuits
As of August 2025, MCM continues to file numerous debt collection lawsuits across various jurisdictions. For instance, in Hale County, Texas, multiple debt claims were filed by creditors, including MCM, against individuals during early August 2025. Some cases were dismissed or disposed of, reflecting settled or dropped claims, while others proceeded through the court system.
- Class Action Settlement for TCPA Violations
In a notable class action lawsuit, MCM agreed to a $15 million settlement to resolve allegations that it violated the Telephone Consumer Protection Act (TCPA). The lawsuit claimed that MCM used an automatic telephone dialing system to place robocalls to consumers’ cell phones without prior consent. As part of the settlement, affected consumers were offered debt forgiveness or a one-time cash payout.
- Alleged Violations of Fair Debt Collection Practices
MCM has faced accusations of violating the Fair Debt Collection Practices Act (FDCPA). In one instance, a proposed class action lawsuit alleged that MCM failed to clearly indicate the amount consumers needed to pay, potentially misleading them about their debt obligations.
Consumer Experiences and Legal Outcomes
- Dismissal of a $12,000 Lawsuit
In a case handled by Paramount Law in Tulsa, Oklahoma, a consumer facing a $12,000 lawsuit from MCM sought legal assistance. Within 18 days of engaging the law firm, the lawsuit was dismissed, preventing a judgment against the consumer. This outcome highlights the importance of timely legal intervention when facing debt collection lawsuits.
- Default Judgment and Subsequent Federal Lawsuit
Diana Delgado, a Minnesota resident, was sued by MCM after defaulting on a department store credit card debt. She did not respond to the summons, leading to a default judgment in favor of MCM. Instead of seeking reconsideration or appealing the default judgment, Delgado filed a federal lawsuit against MCM, alleging violations of the FDCPA, including claims that MCM attempted to collect a debt without proper documentation of ownership.
Implications for Consumers
Consumers facing lawsuits from MCM should be aware of their rights and options. It’s crucial to respond promptly to any legal notices to avoid default judgments. Engaging legal counsel can provide guidance on challenging the validity of the debt, negotiating settlements, or exploring other defenses under consumer protection laws.
Conclusion
Midland Credit Management remains a significant player in the U.S. debt collection landscape, frequently engaging in legal actions to recover purchased debts. While some consumers have successfully contested or settled these lawsuits, others have faced challenges navigating the legal complexities. Understanding one’s rights and seeking timely legal assistance are essential steps for consumers dealing with debt collection lawsuits.
