Midland Credit Management Lawsuit 2026, No New Settlement—But $57M In Past Penalties Show Pattern Of Violations, CFPB Complaints Up 85% Since 2022

CFPB complaint volume for MCM-related complaints has increased from approximately 495 in 2022 to 705 in 2023 to 1,300 or more in 2024. While no new class action settlement exists in 2026, Midland Credit Management’s history of violations continues. Public records show at least six major government enforcement actions against Encore Capital Group and its subsidiaries including Midland Credit Management, totaling $85 million or more in documented penalties.

As of early 2025, Midland has been averaging about 500 lawsuits per week in Pennsylvania alone, targeting consumers with debts they bought for pennies on the dollar.

What Are The Major Midland Credit Lawsuits?

$15M TCPA Settlement (Closed 2021): Midland Credit Management Inc. has agreed to pay $15 million in order to settle accusations that the company violated the Telephone Consumer Protection Act (TCPA) by using an automatic telephone dialing system to place repeated debt collection calls to cell phones without prior consent. This settlement is closed—no new claims accepted.

$52M CFPB Enforcement (2015-2020): The CFPB ordered Encore and its subsidiaries to pay $42 million in consumer refunds plus a $10 million penalty in 2015 for collecting debts they could not prove consumers owed, then imposed an additional $15 million penalty in 2020 for violating that consent order.

$4.5M Massachusetts Settlement (2022): Midland is required to pay $4.5 million, which includes restitution to thousands of impacted Massachusetts consumers after Attorney General Maura Healey sued for collecting debts without proper documentation.

What Did Midland Do Wrong?

The settlement resolved the AG’s investigation into numerous unfair and deceptive debt buying and debt collection practices by Midland. This includes regularly purchasing debts without obtaining underlying documentation, such as account statements and credit agreements, necessary to ensure the debt is valid and accurate.

Midland also additionally failed to prevent its former debt collection law firm, the Daniels Law Office, from falsifying information about lawsuits and judgments against consumers, and Midland then allowed subsequent debt collection law firms to pursue consumers based on this falsified information.

The “robo-signing” scandal parallels practices seen in the Fair Debt Collection Practices Act (FDCPA) violations where debt collectors engage in harassment, misrepresentation, and unfair practices.

How Midland’s Business Model Works

Encore Capital Group’s 2024 annual report filed with the SEC discloses Portfolio Purchases (2024): $1.35 billion in debt portfolios acquired — a record year for Encore Capital Group; Collections (2024): $2.16 billion collected from consumers globally, of which $1.57 billion was from U.S. consumers.

Midland buys large groups of these allegedly defaulted credit card accounts for pennies on the dollar for the sole purpose of attempting to collect whatever they can from individuals just like you. From the information that we have, they spend an average of about three cents per dollar on these account purchases.

Are You Being Sued By Midland?

Midland Credit Management isn’t just trying to scare you with paperwork—they’re serious about collecting the debt. If you don’t respond to the lawsuit, they can ask the court for a default judgment, which means they win automatically.

However, debt buyers face significant challenges proving cases. Midland made excessive and harassing phone calls to consumers in order to collect on consumer debts, in some instances, placing as many as 15 phone calls within a seven-day period. This is a violation of the AG’s Debt Collection Regulations, which prohibit making more than two calls to a consumer within a seven-day period.

What To Do If Midland Contacts You

Similar to guidance in the Do You Still Owe If Your Debt Is Sold? Guide To Sold Debts article, demand debt validation within 30 days. All that it takes is a simple letter on your part, directed to Midland Funding or Midland Credit Management, that says “do not contact me via phone again”. After that letter is sent, Midland will not be able to call you again.

Never ignore a lawsuit. You typically have 20 to 30 days to respond, depending on your state’s laws. Ignoring these papers won’t make them go away; it could actually make things worse.

FAQs

Is there a new Midland Credit Management settlement in 2026?

No. The most recent settlement was Massachusetts in 2022. The $15M TCPA settlement closed in 2021. No new class action settlements exist as of February 2026.

What were the main violations?

Collecting debts without proper documentation, robo-signing false affidavits, making excessive harassing calls (15+ in seven days), and attempting to collect time-barred debts without proper disclosure.

Can I still sue Midland for FDCPA violations?

Yes. You have one year from the violation date to file individual claims for statutory damages up to $1,000 plus attorney fees.

How much did Midland pay in penalties?

At least $57 million documented: $42M CFPB consumer refunds (2015), $10M CFPB penalty (2015), $15M CFPB penalty (2020), $4.5M Massachusetts (2022), plus $15M TCPA settlement (2021).

Should I pay Midland if they contact me?

Not before requesting debt validation. Demand written proof they own the debt and it’s within your state’s statute of limitations.

What if I’m sued by Midland?

File an Answer within 20-30 days (varies by state). Demand they prove the debt with original documentation. Many cases are dismissed when collectors can’t provide proof.

Where do I report Midland violations?

File complaints with the CFPB, FTC, or your state attorney general. Document all violations with dates, times, and call recordings where legal.

Last Updated: February 14, 2026

Disclaimer: This article provides general information about Midland Credit Management litigation history and is not legal advice.

What To Do: If Midland contacts you, send debt validation requests and cease-contact letters via certified mail. Never ignore lawsuits—file an Answer or consult a consumer protection attorney.

Stay informed, stay protected. — AllAboutLawyer.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.
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