Midland Credit Management Has Paid Over $85 Million in Penalties — Here Is What That Means for You Right Now

Midland Credit Management (MCM) is one of the most sued debt collectors in America — and also one of the most aggressive at suing consumers. Government regulators have hit the company with over $85 million in documented penalties since 2015 for robo-signing court documents, collecting zombie debts, and making harassment-level phone calls. No new open class action settlement exists as of April 2026. But if Midland has contacted you, sued you, or violated your rights, this guide covers exactly what to do.

Field	Detail
Company	Midland Credit Management, Inc. / Midland Funding, LLC
Parent Company	Encore Capital Group, Inc.
Total Government Penalties	$85 million+ (2015–2022)
Most Recent Settlement	Massachusetts AG — $12 million (September 2022)
Open Class Action Claim	None as of April 2026
CFPB Complaints (2024)	1,300+ (up from 495 in 2022)
FDCPA Individual Claim Deadline	1 year from violation date
Individual Statutory Damages	Up to $1,000 + attorney fees

Where Things Stand in 2026

• No new class action settlement exists as of early 2026. The most recent settlement was Massachusetts in 2022, and the $15 million TCPA settlement closed in 2021.
• 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.
• 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.

Midland Buys Your Debt for 3 Cents on the Dollar — Then Sues You for Every Penny

Midland Credit Management is not a bank. It is not your original credit card company. Midland Credit Management buys bad debt — credit accounts that are in default — to try to make a profit. These debts can be in the form of credit cards, auto loans, student loans, or personal loans. 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.

Midland tends to focus on credit card accounts when purchasing bad debt. From available information, they spend an average of about three cents per dollar on these account purchases. They file hundreds of lawsuits daily in hopes of collecting on old debt claims that have been charged off by the original creditor.

This matters to you directly: Midland is NOT working for the original creditor and they are not collecting for the original creditor. They bought your account and they own it. If you pay any money to Midland, the original creditor will not see a dime.

Robo-Signed Affidavits, Zombie Debts, 15 Calls in Seven Days: What Regulators Actually Found

This is not a company that faced one complaint. Multiple government bodies at the federal and state level investigated MCM and found the same patterns over and over.

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. In other words, they were caught breaking the rules, paid a fine, and then broke the rules again.

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The Massachusetts AG’s investigation found that Midland regularly purchased debts without obtaining underlying documentation — such as account statements and credit agreements — necessary to ensure the debt was valid and accurate. Midland also failed to prevent its former debt collection law firm, the Daniels Law Office, from falsifying information about lawsuits and judgments against consumers, and then allowed subsequent law firms to pursue consumers based on that falsified information.

Midland made excessive and harassing phone calls to consumers in order to collect on debts, in some instances placing as many as 15 phone calls within a seven-day period — a direct violation of debt collection regulations, which prohibit more than two calls to a consumer within a seven-day period.

Every Major Government Action Against Midland — In One Place

Action	Year	Amount	What They Did
CFPB Enforcement (Encore/MCM)	2015	$52 million	Collected debts without proof, sued consumers using insufficient documentation
42-State AG Settlement	2018	$6 million	Filed lawsuits without proper documentation, pursued time-barred debts
CFPB Penalty (Consent Order Violation)	2020	$15 million	Violated the 2015 consent order — same violations, again
TCPA Class Action Settlement	2021	$15 million	Used auto-dialers to call cell phones without consumer consent
Massachusetts AG Settlement	2022	$12 million	Robo-signed affidavits, harassing calls, collected time-barred debts without disclosure

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.

Midland Just Sued You — Here Is Exactly What to Do Before Your Deadline Runs Out

This is the question most people landing on this page are actually asking. Once you are served, you typically have around 20 to 30 days to respond before Midland can win a default judgment and come after your wages and bank accounts.

Most people do nothing — and that is the single most expensive mistake you can make.

Step 1 — Confirm the lawsuit is real. Call the court clerk listed on the summons with the case number and your name. Scammers sometimes impersonate Midland, so verify the case is actually in the court system before taking any action.

Step 2 — File a written Answer with the court. Answer within the time limit (usually 20–30 days) by denying that which is untrue. Filing an Answer does not mean you admit the debt is valid — it simply means you are contesting the lawsuit.

Step 3 — Demand proof they actually own your debt. Ask them to produce proper documentation that the debt is yours and the amount is correct. Given Midland’s documented history of purchasing debts without underlying account statements, this demand alone has ended many cases.

Step 4 — Check whether the debt is too old to collect. Verify the statute of limitations in your state — usually 3 to 6 years. If the debt is older than that limit, the lawsuit may be void.

Step 5 — Consult a consumer protection attorney before the deadline. Many work on contingency for FDCPA violations, meaning they take no fee unless you win.

Did Midland Call You Repeatedly, Collect a Zombie Debt, or Robo-Sign Your Case? You May Have a Claim Against Them

Here is the less obvious side of this story: Midland can also be on the receiving end of legal action from you.

You may have a valid individual claim against Midland if any of these apply:

• They called your cell phone repeatedly without your consent using an auto-dialer
• They placed more than two calls to you within a seven-day period
• They attempted to collect a debt that was past your state’s statute of limitations without disclosing that fact
• They filed a lawsuit against you using a robo-signed affidavit or without proper documentation
• They reported inaccurate information to the credit bureaus about a debt they could not verify
• They threatened legal action on a debt they had no intention of pursuing
• They contacted you after you sent a written cease-contact letter

You have one year from the violation date to file individual claims for statutory damages up to $1,000 plus attorney fees. Consumer protection attorneys handle these cases regularly and often at no upfront cost to you.

The $15 Million TCPA Settlement Is Closed — But Here Is What It Covered

Midland Credit Management agreed to pay $15 million to settle accusations that the company violated the Telephone Consumer Protection Act by using an automatic telephone dialing system to place repeated debt collection calls to cell phones without prior consent. That settlement closed in 2021.

The settlement used the $15 million to forgive class members of a portion of their unpaid debts or award class members with no debt with a one-time cash payout. Class members who had an outstanding debt with MCM received a divided portion of a $13 million debt forgiveness fund, while those who owed nothing received a share of a $2 million cash fund.

The deadline for that claim has passed. If you believe you were in that class and missed the window, contact the settlement administrator to determine whether late claims were accepted.

Frequently Asked Questions

Is there an open Midland Credit Management class action I can join right now? 

No. As of April 2026, there is no open class action settlement against Midland Credit Management. The most recent settlement — a $12 million Massachusetts AG action — closed in 2022. If a new class action is certified, affected consumers will receive court notice by mail or email.

Do I need a lawyer to respond to a Midland lawsuit? 

You do not need a lawyer to file an Answer with the court, but consulting one before your deadline is strongly recommended. Many consumer protection attorneys offer free consultations and handle FDCPA cases on contingency — you pay nothing unless they win.

Is Midland Credit Management a legitimate company? 

Yes. Midland is a legitimate debt buyer and collector under Encore Capital Group, but its practices have faced criticism and lawsuits from consumers and regulators. Being contacted by Midland does not automatically mean you legally owe them anything — request written debt verification before paying.

What happens if I just ignore the lawsuit?

 Ignoring a lawsuit almost always leads to a default judgment in Midland’s favor. This means they can legally garnish wages or freeze bank accounts. Do not ignore court papers under any circumstances.

Can I settle with Midland for less than the full amount? 

Yes. Many consumers negotiate reduced settlements, especially on older or larger debts. Get any settlement agreement in writing before sending a single payment. Always confirm whether the agreement includes account deletion from your credit report.

When will I receive my payment from a Midland settlement? 

No open settlement is accepting claims in 2026. If a future settlement is approved, the payment timeline will depend on court approval — typically 45 to 90 days after the settlement becomes final.

Will a settlement payment from Midland affect my taxes?

 Debt forgiveness from a settlement is sometimes treated as taxable income by the IRS. Cash payments related to statutory violations may also have tax implications. Consult a tax professional once any settlement terms are finalized.

What if I missed the TCPA claim deadline?

 The $15 million TCPA settlement closed in 2021. If you believe you were part of that class and missed the deadline, the settlement is no longer accepting claims. You may still have individual FDCPA or TCPA claims if violations occurred within the past year — consult a consumer protection attorney.

Sources

• CFPB enforcement action — Encore Capital Group/Midland: consumerfinance.gov
• Massachusetts AG $12 million settlement: mass.gov
• DC AG $6 million multistate settlement: oag.dc.gov

Last Updated: April 2, 2026

This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice about your specific situation, consult a qualified attorney licensed in your state.