Midland Credit Management Debt Collection Class Action Lawsuit Settlement, Payments & Deadlines

California residents who received a debt collection letter from Midland Credit Management about a Capital One debt between September 12, 2018, and August 22, 2022, may qualify for a cash payment from a $318,000 class action settlement. No claim form is required — eligible class members simply select a payment method at mcmsettlement.com. The opt-out deadline is April 24, 2026.

Key Dates

Note: There is no separate claim filing deadline. Class members must submit a preferred payment method selection through the settlement website.

Case Overview

The lawsuit, Peggy Irene Leedeman v. Midland Credit Management Inc., Case No. 19CV354554, was filed in California state court. The plaintiff alleged that Midland violated California’s Fair Debt Buying Practices Act (FDBPA) in two specific ways: its initial collection letters failed to disclose the true name of the debt buyer, and the letters used a font size smaller than the 12-point minimum required by law.

Midland Credit Management is one of the largest debt buyers in the United States and a subsidiary of Encore Capital Group. It purchases charged-off consumer debts from original creditors — including Capital One — and attempts to collect those debts from consumers. Midland denies all allegations but agreed to settle to avoid the cost and uncertainty of further litigation. The case matters because California’s FDBPA gives consumers specific rights when a debt buyer contacts them, including the right to clear, readable disclosures about who owns their debt.

Settlement Amount Breakdown

Here is exactly how the $671,000 total settlement is allocated:

The $318,000 net fund is divided equally among all class members who do not opt out. The final per-person amount depends on how many of the 36,635 class members participate.

Eligibility Requirements

You are a class member if all of the following apply:

• You have a California address
• You received an initial written communication from Midland Credit Management in the form of Exhibits 1 or 2 attached to the First Amended Class Action Complaint
• The letter was an attempt to collect a charged-off consumer debt originally owed to Capital One Bank (USA) N.A.
• The debt was sold or resold to Midland on or after January 1, 2014
• The letter was sent between September 12, 2018, and August 22, 2022
• The letter was not returned as undeliverable by the U.S. Post Office

According to court records, 36,635 people meet these criteria. If you received a settlement notice in the mail with a CPT ID and Passcode, you are already identified as a class member.

Who Is Not Eligible

You are not eligible if you live outside California, if your debt was not originally owed to Capital One, or if your letter was returned as undeliverable. Debts purchased before January 1, 2014 are also excluded, as is debt collected by Midland after the August 22, 2022 cutoff date.

This settlement covers only a specific form of initial collection letter — it does not cover all communications Midland may have sent you. If you received later collection letters, phone calls, or a lawsuit from Midland, those are not part of this case. You will not receive a duplicate payment if you are identified in the class records more than once.

Payment Calculation — What You Could Receive

The payment method here is equal pro rata distribution: the $318,000 net fund is split evenly among all participating class members.

Step 1: Start with the $318,000 net recovery fund.

Step 2: Divide by the number of participating class members.

Step 3: Each person receives an equal share.

Payment Examples:

Important: The final per-person amount is unknown until the opt-out period closes and the court grants final approval. Payments will be issued after the July 23, 2026 fairness hearing. Do not count on a specific dollar amount before that date.

How to Receive Your Payment (No Claim Form Needed)

This settlement does not require you to file a claim form. Here is what you need to do:

1. Locate your settlement notice — you should have received a letter in the mail containing your unique CPT ID and Passcode
2. Visit mcmsettlement.com
3. Log in using your CPT ID and Passcode
4. Select your preferred payment method — either digital payment or a paper check mailed to your address on file
5. Submit your selection before the opt-out deadline of April 24, 2026

If you did not receive a notice but believe you qualify, contact the settlement administrator:

CPT Group Inc. Leedeman v. Midland Credit Management Inc. c/o CPT Group Inc., PO Box 19504, Irvine, CA 92623 📞 1-888-545-0137 ✉️ [email protected]

Mail-in option: If you want to opt out instead of participating, mail a written exclusion request — including your name, address, phone number, and signature — postmarked by April 24, 2026, to the Clerk of the Court for the Santa Clara County Superior Court (Case No. 19CV354554).

What You Must Know Before the Deadline

Tax note: Settlement payments may be taxable income. AllAboutLawyer.com does not provide tax advice — consult a tax professional about your specific situation.

Opting out: If you opt out, you preserve your right to sue Midland separately for the same claims, but you will receive no payment from this settlement. Given the relatively modest per-person recovery here, individuals who received many letters or experienced significant harm may wish to consult a consumer protection attorney before the April 24, 2026 opt-out deadline.

Common mistakes: Do not ignore the settlement notice assuming it is junk mail. The CPT ID and Passcode on your notice are required to access the payment portal. If you moved since receiving Midland’s letter, contact CPT Group to update your address.

Payment timeline: Payments will not be issued until after the July 23, 2026 final approval hearing and after all processing is complete. Realistically, payments are unlikely before late 2026.

Frequently Asked Questions

What is this settlement about? 

Midland Credit Management agreed to pay $318,000 to resolve allegations that it sent initial Capital One debt collection letters to California consumers that failed to disclose the true name of the debt buyer and used type smaller than 12-point font, in violation of California’s Fair Debt Buying Practices Act.

How much will I get? 

The exact amount depends on total participation. If all 36,635 class members participate, each person would receive approximately $8.68. Fewer participants means a higher payment per person.

When will I be paid?

 Payments are expected after the July 23, 2026 final fairness hearing, likely sometime in late 2026 at the earliest.

Do I need to file a claim form? 

No. You simply need to log in to mcmsettlement.com with your CPT ID and Passcode and select a payment method.

Can I still participate if I didn’t get a notice in the mail? 

Contact CPT Group at 1-888-545-0137 or [email protected] to find out if you are in the class records. The class was identified from Midland’s own records, so most eligible people should have received a notice.

What if I no longer owe Capital One money or already paid the debt? 

Eligibility is based on receiving the specific initial collection letter, not on your current debt status. If the letter was sent to you during the class period, you may still qualify regardless of whether the debt was later resolved.

Do I need a lawyer?

 No. You do not need an attorney to participate. Class counsel is already representing the class. If you want to opt out and pursue individual claims, you may wish to consult a consumer protection attorney before April 24, 2026.

How do I prove I was contacted by Midland Credit Management?

 No proof is required from class members. Midland’s own records were used to identify class members. If you received a settlement notice, you are already verified. If you did not receive a notice, you may need to provide basic information to the settlement administrator to confirm eligibility.

What happens if I do nothing? 

If you do nothing and are a class member, you will remain in the class and receive a payment (if you have selected a payment method). If you take no action at all — including not selecting a payment method — you may still be bound by the settlement release but could forfeit your payment. Confirm your status at mcmsettlement.com to be safe.

Is Midland Credit Management still collecting debts? 

Yes. This settlement resolves only the specific legal claims in this case. If Midland is currently attempting to collect a debt from you, you still have rights under the FDCPA and California law. For more on how debt collection laws protect you, see our guide to understanding the Fair Debt Collection Practices Act.

Last Updated: February 18, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Settlement terms, eligibility, and payment amounts are subject to court approval and may change. For official information, always refer to the settlement administrator or the official settlement website at mcmsettlement.com.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah