Midland Credit Management, Inc. (MCM) is a debt collection company that operates in the United States. MCM was founded in 1953 and is headquartered in San Diego, California. The company specializes in the collection of consumer debts, such as card debts, auto loans, and medical debts. MCM is owned by Encore Capital Group, which is a publicly traded company listed on NASDAQ.

MCM’s business model is centered around buying delinquent debts from original creditors and then attempting to collect them from consumers. The company uses a variety of methods to collect debts, including phone calls, letters, and legal action. However, the company has been involved in controversies over its debt collection practices, which have led to lawsuits and regulatory actions by government agencies.

In 2015, the Consumer Financial Protection Bureau (CFPB) fined MCM $18 million for engaging in unlawful debt collection practices. The CFPB found that MCM had violated the Fair Debt Collection Practices Act (FDCPA) by misrepresenting the amount and nature of debts, threatening legal action that it did not intend to take, and harassing consumers with frequent phone calls. The CFPB also found that MCM had failed to properly investigate disputes from consumers and had sold debts that it knew or should have known were inaccurate or invalid.

As part of the settlement, MCM was required to refund $700,000 to consumers, stop collection on over $130 million of debts, and develop a compliance plan to ensure that its debt collection practices comply with the law. The CFPB also imposed additional restrictions on MCM’s collection activities, such as requiring the company to record all phone calls with consumers and to provide consumers with more information about their rights under the FDCPA.

MCM has also faced lawsuits from consumers who allege that the company harassed them with frequent phone calls and misrepresented the amount and nature of debts. For example, in 2017, a jury in Illinois awarded $5.2 million to a woman who had sued MCM for violating the FDCPA. The woman had alleged that MCM had called her up to eight times a day, had used vulgar language, and had threatened to garnish her wages and seize her property.

MCM has defended its debt collection practices, stating that it complies with all applicable laws and regulations. The company has also noted that it provides consumers with the opportunity to dispute debts and to negotiate payment plans. MCM has stated that it plays a vital role in the economy by helping to recover debts that would otherwise go unpaid and by providing liquidity to creditors.

However, consumer advocates have criticized MCM and other debt collection companies for engaging in abusive and unfair practices. They argue that debt collection companies often target vulnerable consumers, such as those with low incomes or limited English proficiency, and use aggressive tactics to collect debts. They also argue that many debts that are sold to debt collection companies are inaccurate or outdated, creating confusion and frustration for consumers.

In conclusion, Midland Credit Management, Inc. is a debt collection company that has been involved in controversies over its debt collection practices. While the company has defended its practices and stated that it complies with all applicable laws and regulations, it has faced regulatory actions and lawsuits over allegations of harassment, misrepresentation, and other violations of the Fair Debt Collection Practices Act. The debt collection industry as a whole has faced criticism from consumer advocates and others who argue that it engages in abusive and unfair practices that harm consumers.

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