This number is registered to Midland Credit Management, which is calling you because they claim you owe a debt that they have acquired from another business.
Please note, MCM is not the original creditor, but rather a third-party debt collector that purchases charged-off debts from banks and lenders for pennies on the dollar and attempts to collect them for their own gain.
In this article, we will explore what MCM is, why they are calling you from this phone number, what their customer service representatives sound like over the phone, and what you can do to protect your credit report.
What is Midland Credit Management?
Type of company: Debt buyer (buys charged-off debts from original creditors and attempts to collect for profit)
Parent company: Encore Capital Group (a publicly traded company based in San Diego, California)
Industry: Primarily purchases credit card debts (roughly 94%) and also buys personal loans, auto loans, telecom, and utility debts
Size: The largest debt collector in the U.S. with approximately 4,000 employees and 24 locations across the country
Headquarters: 350 Camino De La Reina, Suite 100, San Diego, CA 92108
State licensure: Licensed to do business in all 50 states
Better Business Bureau (BBB): Not accredited; 1,051 complaints closed in the last 3 years
MCM Has a Long History of Regulatory Issues
You are not the only person who feels like Midland Credit Management is harassing you. The company has been hit with nearly $200 million in combined fines and settlements. In 2016, the company settled a class action lawsuit for $20.5 million. The allegations claimed MCM violated the Telephone Consumer Protection Act (TCPA) through its use of automatic dialing systems to dial consumers’ cell phones without their prior consent.
The Consumer Financial Protection Bureau (CFPB) sued MCM twice. The first time was in 2015 and the second was in 2020. Both consent orders require the company to provide refunds and pay civil money penalties totaling millions of dollars. In 2018, 42 state attorneys generals settled with the company after allegations it filed robo-signed court affidavits.
The pattern of calling you multiple times a day is nothing new. In fact, it’s been going on for years.
Why is Midland Credit Management calling you?
They bought your debt for pennies on the dollar
MCM is not a lender and did not issue you a credit card. It purchases debts that have gone into default after the original creditor fails to collect for roughly six months. At that point, the original creditor charges off the debt and sells it to a third-party debt collector like MCM for pennies on the dollar.
On average, MCM pays 3.1 cents for every dollar of face value. This means if you owed $1,000 to the original creditor, MCM likely paid $31 to purchase your debt.
MCM buys debts from banks like Chase, Citibank, Capital One, Bank of America, American Express, Synchrony Bank, Barclays, Wells Fargo, and Discover. If you have ever had an account with any of these banks that went into default, there’s a good chance MCM owns your debt and that’s why you’re getting calls from 800-334-7724.
They may be calling the wrong person altogether
One of the most common themes you’ll find when you read reviews from consumers who have been contacted by this company is wrong-person contact.
One consumer who posted on EveryCaller said she received calls from the company for 3 years. She’d get multiple calls a day and never received voicemail messages. She claims to have an 820 FICO score and hasn’t been late on a payment in 40 years.
Another person who posted on the same website said they called the company to explain they were calling the wrong person. The representative told them she would call them back in 2 hours to confirm they got the right person. Sure enough, 2 hours later, the phone rang.
When debt buyers purchase debts in bulk, the information attached to those accounts isn’t always accurate. Sometimes phone numbers get recycled. In other cases, names get confused. The end result is people with no relation to the original debt get dozens of calls.
What do their customer service representatives sound like over the phone?
What to expect when you pick up the phone
When you answer calls from 800-334-7724, consumers report that the experience is largely the same. YouMail captured transcripts from voicemails left by MCM representatives. They identify themselves as calling from the company and direct you to call them back at a different phone number.
Why do debt collectors call you from one number but direct you to call a different one? It’s a common point of confusion for many consumers.
One consumer posted on 800notes that the company calls her every day. Sometimes it’s early in the morning. Other times it’s late at night.
Another consumer posted on EveryCaller that she gets 3 to 4 calls a day but never receives voicemails. When she called them back, they told her she owed a debt. When she blocked the number, they called her from a different phone number.
RoboKiller has received more than 39,000 calls from this number and 300 consumer reports. Nomorobo classifies this number as severe and has been blocking it since April 2023.
How do MCM customer service representatives respond to pushback?
Aggressive representatives with no regard for people
When you push back on the debt or ask for verification, consumers report that MCM representatives can get feisty. One consumer posted this account on EveryCaller:
“They are demanding and wanting people to make a payment immediately. I explained to them this debt was not mine and these people are very aggressive and have no regard for how people are treated.”
When one consumer asked the company to validate the debt, they agreed but the calls never stopped. Here’s what she posted on EveryCaller:
“I explained to them that I was not the person they were looking for and she assured me she would have my phone number removed. Within 2 hours, her colleague called me again. I asked her, ‘Don’t you know that it is a violation of federal law to call someone who is on the do-not-call list?’ She explained it wasn’t against the law because I gave them my phone number. I tried to explain the situation to her, but she didn’t seem to care.”
This is important. If a debt collector makes a promise over the phone, it doesn’t mean anything. If the company agrees to stop calling you, remove your phone number from their system, or accept a settlement, the agreement isn’t valid unless it’s in writing. Never rely on a verbal conversation. Instead, confirm the agreement in writing before taking any action.
The credit report is where the battle is waged
This is what they’re really after
When a debt collector is calling you, your initial reaction is to deal with the calls.
The reality is, the calls aren’t the problem. What MCM is reporting to the credit reporting agencies is the real issue. A collection account on your credit report can drag your score down for years. It can also affect your ability to get approved for a mortgage, auto loan, or rental agreement. Some employers even check your credit report as part of the application process.
The battle here isn’t about whether you owed a debt at some point in your life. The battle is about what’s currently being reported on your credit report and whether that listing is accurate, verifiable, and within the statute of limitations. Your credit report is the battlefield. The Fair Credit Reporting Act (FCRA) gives you the weapons you need to fight back.
Disputing the account often works
You don’t need as much documentation as you think
A lot of consumers assume that challenging a collection account requires all sorts of documentation. In reality, the burden of proof is on the creditor. When you file a dispute with the credit reporting agencies, they are required by law to investigate and verify the accuracy of the listing within 30 days. If the collector cannot verify the account, they must delete it.
MCM purchases millions of accounts. In many cases, the documentation that accompanies the purchase is not enough to meet verification requirements. Sometimes all it takes is challenging the listing for it to be deleted.
What MCM doesn’t want you to know
Lawsuit threats are more rare than you think
One of the most valuable tools debt collectors have in their arsenal is the threat of a lawsuit. MCM representatives may suggest that if you don’t pay, you may face a lawsuit or wage garnishment. While it’s true that debt buyers like MCM can file lawsuits in court – and the company has filed thousands of them in some areas – the reality is that most collection accounts never end up in court.
It costs money to file a lawsuit. If the debt buyer takes you to court, they’ll have to prove you owe the debt, which requires documentation that MCM may not have, especially if it’s an older account that’s changed hands multiple times. For most people, the likelihood of getting sued is slim to none.
In 2020, the CFPB sued MCM, alleging the company sued consumers for debts that were beyond the statute of limitations and used robo-signed affidavits instead of actual records.
Your income may be protected from garnishment
State and federal exemptions
Even in the rare event that a debt collector sues you and gets a judgment against you, you may have more protection than you realize. There are federal and state exemptions that protect some of your income from garnishment. For example: Social Security, Disability, Veteran’s benefits, and Retirement.
Some states provide additional exemptions or offer higher protections for garnishment. In some areas, creditors can only take a certain percentage of your paycheck. In others, they can’t touch a certain level of income.
These exemptions are on the books because lawmakers understand that debt collection practices can force people into a crisis. It’s essential that you understand which exemptions are available in your state if you’re facing pressure to make a payment you can’t afford.
Conclusion
It’s time to take control of your credit report
Midland Credit Management is the largest debt buyer in the country. The publicly traded parent company has more than a billion dollars in annual revenues.
The company’s business model is built around buying up debts for pennies on the dollar and attempting to collect on them through phone calls, letters, and credit report listings. The calls you’re getting from 800-334-7724 are just one part of the machine.
However, that machine has flaws. MCM has been forced to pay nearly $200 million in regulatory fines and settlements. The company’s practices include attempting to collect debts they cannot verify, filing lawsuits using robo-signed affidavits, and violating consent orders. Many of the debts they purchase come with records that cannot withstand a legitimate dispute.
Don’t call them back. Don’t negotiate over the phone. Don’t accept verbal promises.
Instead, the single-most effective thing you can do is pull your credit reports and review them to see if you find any accounts listing Midland Credit Management or its affiliate Midland Funding as the creditor. If you do, file a dispute and challenge them. The Fair Credit Reporting Act and the Fair Debt Collection Practices Act are laws designed to protect you.
At FightCollections.com, we specialize in helping people dispute invalid and unsubstantiated collection accounts on their credit reports. If you have an account from Midland Credit Management on your report, contact us for a free consultation to discuss your options.
