The debt collection industry is a lucrative market that has existed for as long as there has been debt. In fact, as of May 2016 the outstanding U.S. consumer debt recorded at$3.4 trillion, with total revolving debt at$929 billion. Midland Credit Management (MCM), wholly owned by Encore Capital are one of the biggest players in this market.
MCMand their Other Affiliates, (Midland Funding LLC, Midland Funding NCC-2 Corporation, MRC Receivables Corporation, Midland Recovery Corp) operate as a third party collection agency, essentially debt buyers. Lets say you have a defaulted credit card bill for $3,000 Midland fundingcould buy it for as little as $300.According to their website, accounts areviable for purchase when:
1.An account has gone at least 180 days without making a payment.2.Someone paid less than the minimum monthly payment for at least 180 days, and the original creditor wishes to sell the right to collect on the account balance.
At this Point MCM will now attempt to collect the full $3,000 owed. If you see any of their associated names on your bill, take comfort that this is a highly established and reviewed company. Who hashelped over 2 million consumers gain control of their financial obligations.
MCM created the industries first consumer bill of rights, using their dominant position in the marketto be pioneers in consumer-agency relations. This holds them accountable toa transparent level of conduct, outlined in the 5 articles that make up the bill. Furthermore they established an independent body of research, the Consumer Credit Research Institute (CCRI). CCRI takes an economical and psychological look in the role of debt and the mind-set of debtors.
This information plays an informative role for consumers looking to break harmful cycles, as well as providing a ‘bridge to understanding’ that could lead to better business practice. The avoidance nature of many debtors creates a litigation dilemma that Encore capital and its subsidies are oftencaught in the centre of.
So if you failed to make payment on the $3,000 owed the account would go back to Midland Funding who would then send it to a lawyer. Now if you are like 90% ofpeople this happens to and don’t show up, the court will most likely rule in Midlands favour. Midland can nowcollect through othertactics, likewage garnishing orlevying your bank account.
The problem is when debt is bought by the millions, lots of information is lost in transaction. Documents like the original application papers areall lost, all that is known is who to contact and for how much. This means many are being charged unlawful amounts.
from around 2011-2015 Midlands where accused of abusing the law system taking advantage of debtors silence and taking cases to court for a quick pay day. Midlands argued that the cost of taking cases to court made it a last resort move only. However in 201423,284 cases were filed in New York alone. By2015 Encore was sued for malpractice andforced to pay a $675,000 penalty, and vacate more than 4,500 court judgments against borrowers.
Many people who have challenged the amount held against them, have found that Midlands do not have the paper work to account for additional charges. So if you have relations with this collection agency or similar collection agencies, it is worth the time to challenge the amount they are asking for. additionally if they take you to court, it is in your best interest to go and defend yourself to ensure they have the legal right to collect.
This company is legally accountable for its actions and operates under principles of transparency and social integrity. So if they have a legitimate account against your name,engage with them and their research so that they can lead you back into financial control.