Midland Credit Management Lawsuit Settlement, $52 Million in Consumer Refunds, How to Claim Yours and Who Qualifies
Midland Credit Management and its parent company Encore Capital Group paid $52 million in settlements between 2015 and 2020 after federal regulators found they violated consumer protection laws through illegal debt collection practices. If you were sued by Midland or paid a debt they collected using robo-signed documents, incomplete records, or time-barred debts, you may be entitled to compensation.
The Consumer Financial Protection Bureau uncovered widespread violations that affected hundreds of thousands of consumers across the United States.
The $52 Million Settlement Breakdown
Between September 2015 and October 2020, Midland Credit Management faced two major enforcement actions from the CFPB. In 2015, Encore Capital Group agreed to pay up to $42 million in consumer refunds and $10 million in civil penalties. Then in 2020, after violating the terms of that settlement, they paid an additional $79,308.81 in consumer redress plus a $15 million civil penalty.
The company bought debts for pennies on the dollar—approximately three cents per dollar of debt—then sued consumers to collect the full amount. Federal investigators found they filed lawsuits without proper documentation, used robo-signed court documents, and attempted to collect on time-barred debts without required disclosures.
What Midland Did Wrong
The CFPB investigation revealed systematic violations of the Fair Debt Collection Practices Act and Consumer Financial Protection Act. Midland filed hundreds of lawsuits daily using affidavits signed in bulk without verifying the information contained in them. This practice, known as robo-signing, became infamous during the mortgage crisis.
They sued consumers even when they lacked complete account records from the original creditor. Many lawsuits relied solely on electronic files with limited consumer information, no original account agreements, and insufficient documentation to prove the debt was valid or that Midland legally owned it.
Additionally, Midland collected on time-barred debts—debts past the statute of limitations—without telling consumers they couldn’t be sued for these old debts. In debt collection lawsuits, courts determine liability based on verified evidence and applicable consumer protection laws, but Midland proceeded without meeting these legal standards.
Who Qualifies for Settlement Compensation
You may be eligible for compensation if you fall into one of these categories. First, consumers who made payments to Midland after the company submitted a robo-signed affidavit in a collections lawsuit between 2009 and 2015, where the amounts in the affidavit didn’t match Midland’s actual records.
Second, consumers who were sued or threatened with lawsuits on time-barred debts without proper disclosures about their legal rights. Third, those who paid debts that Midland misrepresented in court as valid simply because the consumer didn’t previously dispute it.
Additionally, a separate 42-state settlement in 2018 covered consumers in participating states who faced similar violations. Georgia consumers, for example, received a share of an $8.9 million settlement specifically addressing robo-signing violations.
If you were contacted by Midland about a debt you didn’t recognize or received collection letters for old debts, understanding your rights under can you sue for wrongful debt collection laws can help you determine if you have additional claims.
What You Must Know
Settlement Terms and Consumer Protections
The CFPB settlements imposed strict requirements on Midland going forward. The company must now provide consumers with detailed information about debts—including the original creditor’s name and charge-off balance—before filing lawsuits. They’re prohibited from using affidavits unless the signer personally verified every fact contained in them.
Midland can no longer sue or threaten to sue on time-barred debts. If they attempt to collect on old debts, they must clearly disclose that the statute of limitations has expired and they cannot file a lawsuit.
How the Refund Process Works
The CFPB handled consumer refunds directly for the federal settlements. Eligible consumers received notification by mail about their compensation. For the 2015 settlement, refunds came from a pool of up to $42 million plus $125 million in cancelled debt collection efforts.
For state-specific settlements, like the 42-state agreement, consumers needed to submit claim forms. Georgia’s Attorney General, for instance, made claim forms available through the state’s Consumer Protection Division website at consumer.ga.gov.
The settlement also required Midland to stop reselling debts to third-party collectors, protecting consumers from continued harassment on potentially inaccurate debts.
What to Do Next
Check Your Eligibility for Compensation
First, review any debt collection letters or lawsuit documents you received from Midland Credit Management or Midland Funding between 2009 and 2020. Look for robo-signed affidavits—documents that appear to be personally signed but were actually mass-produced without individual verification.
If you were sued, check the date of your last payment to the original creditor and compare it to when Midland filed the lawsuit. If the statute of limitations had expired in your state, you may qualify for compensation.
Access Official Settlement Information
The CFPB maintains public records of all enforcement actions. Visit consumerfinance.gov and search for “Encore Capital Group” or “Midland Credit Management” to access the official consent orders and stipulated judgments. These documents list specific violations and eligibility criteria.
For state-specific settlements, contact your state Attorney General’s Consumer Protection Division. Many states participated in the 2018 multi-state settlement and may have separate claim processes.
If you’re currently being sued by Midland, learning how to answer a summons for debt collection is critical to protecting your rights and potentially qualifying for settlement relief.
File a Complaint for New Violations
If Midland contacted you after 2020 using similar illegal tactics, file a complaint with the CFPB at consumerfinance.gov/complaint. Include copies of all collection letters, court documents, and records of phone calls.
You can also file complaints with your state Attorney General’s office. Document everything: dates, times, names of collectors, what they said, and any threats they made.
Consider Legal Action for FDCPA Violations
Consumers can sue debt collectors for violations of federal law. If Midland harassed you, misrepresented the debt, or violated the statute of limitations, you may recover statutory damages up to $1,000 per violation plus attorney fees. Many consumer rights attorneys work on contingency, meaning they only collect fees if you win.
The one-year statute of limitations for FDCPA claims starts from the date of the violation, so act quickly if you believe Midland violated your rights.
FAQs
How do I know if I received money from the Midland settlement?
The CFPB sent notification letters and checks by mail to eligible consumers for the federal settlements. If you moved, the check may have been returned. Contact the CFPB’s Office of Enforcement at (202) 435-7000 to inquire about unclaimed settlement funds. For state settlements, check with your state Attorney General’s office.
Can I still file a claim if I missed the deadline?
The primary claim periods for the 2015 and 2020 federal settlements have closed. However, if Midland violated settlement terms after 2020, you may have grounds for a new complaint or individual lawsuit. State settlement deadlines vary—contact your state Attorney General to ask about extended claim periods or ongoing investigations.
What if Midland is still trying to collect a settled debt?
This violates the settlement terms. File an immediate complaint with the CFPB and send Midland a cease-and-desist letter via certified mail. Keep copies of all communications. If harassment continues, consult a consumer rights attorney about additional legal action.
Does the settlement clear my credit report?
The settlement required Midland to stop collecting on $125 million in debts and provide refunds, but it didn’t automatically remove Midland entries from credit reports. However, if the debt was based on robo-signed or inaccurate documents, you can dispute it with credit bureaus. Include copies of the CFPB consent orders as evidence.
Can I sue Midland even after the settlement?
Yes. The settlement resolved the CFPB’s claims but didn’t prevent individual consumers from filing their own lawsuits for FDCPA violations. If Midland violated your rights, you have one year from the violation date to file. Consult with a consumer protection attorney who specializes in debt collection cases.
What states were included in the 2018 multi-state settlement?
Forty-two states plus the District of Columbia participated, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wyoming.
What happens if I’m currently being sued by Midland Credit Management?
Do not ignore the lawsuit. You typically have 20-30 days to file a written Answer with the court. Responding forces Midland to prove they own the debt and have proper documentation. Many cases are dismissed when consumers challenge them because debt buyers lack complete records. Consider hiring a consumer defense attorney or using resources like SoloSuit to file your response.
Last Updated: January 20, 2026
Disclaimer: This article provides general information about the Midland Credit Management settlements and is not legal advice for your specific situation.
Have you dealt with Midland Credit Management? Share your experience or ask questions in the comments below to help other consumers protect their rights.
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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.
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