Encore Capital Group, Subsidiaries Accused of Misleading Consumers

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Midland Credit Management, Inc., Midland Funding, LLC, and Encore Capital Group, Inc. are facing a proposed class action lawsuit that claims their debt collection letters are deceptive and misleading. The plaintiff says she received two letters from the defendants that reflected an increasing account balance, which would imply that interest is accruing, but made no mention of whether interest or other charges would be added to the balance. The suit argues that the defendant’s failure to clearly communicate the amount of the plaintiff’s alleged debt violates the Fair Debt Collection Practices Act (FDCPA).

In addition, the complaint claims that the letters instructed the plaintiff to mail any disputes to the defendants’ physical address, implying that disputes must be submitted in writing rather than orally. The suit alleges that the FDCPA demands no such requirement and that the defendants’ refusal to accept disputes over the phone is illegal.