If 877-366-1520 is calling, the debt collector on the other end is Midland Credit Management (MCM). They are calling because they think you owe them money.
Specifically, they are calling because they have purchased your debt from the original creditor. They purchase these debts from banks and credit card companies for pennies on the dollar, often between 3 and 7 cents on the dollar, then turn around and attempt to collect the full amount from you. If they can succeed in getting you to pay the full amount of the debt, they have made a tidy profit.
But before we dig in, it’s worth noting that the original company that you owed the debt to has already written this debt off. That’s right, they have already taken a tax deduction on the amount you owed them and they have sold your debt along with thousands of others in a huge batch of debts to Midland Credit Management. They no longer care about collecting on this debt. In fact, if you pay Midland Credit Management, you are simply lining their pockets with profits.
Now that you know who Midland Credit Management is, it’s time to dig in and find out more.
Who is Midland Credit Management?
Midland Credit Management is a debt buying company. This means they purchase charged off consumer debts from banks and credit card companies, then turn around and attempt to collect on those debts.
MCM is owned by their parent company, Encore Capital Group, which is based out of San Diego, California.
MCM is a large company, boasting over 7,350 employees and over $1.3 billion in revenue each year.
Their focus is primarily on collecting on charged off credit card debt, however, they do purchase and collect on other types of debts such as auto loan debt, telecom debt, personal loan debt, and retail store debt.
They operate in all 50 states and have 24 offices throughout the country. They operate call centers in the U.S. as well as in India and Costa Rica.
MCM purchases debts from a variety of sources, including JPMorgan Chase, Citibank, Capital One, Discover, Synchrony Bank, and Comenity Bank, just to name a few.
Despite their questionable business practices and reputation, they have managed to maintain an A+ rating with the Better Business Bureau. This is likely due to the fact that they are not accredited with the BBB and despite having over 1,000 complaints filed with the BBB in the past three years.
A History of Illegal Collection Practices
If you feel like you’re being pushed or harassed by the collectors calling from this number, you’re not alone. In fact, Midland Credit Management has been fined over $103 million by the federal government and state governments for illegal collection practices.
In 2015, the Consumer Financial Protection Bureau (CFPB) sued MCM for their illegal practices. Then, in 2019, the CFPB sued them again.
In 2015, 42 state attorneys general came to a settlement with MCM for their robo-signing practices. Robo-signing occurs when a debt collector signs thousands of documents claiming the debt is valid without actually reviewing the paperwork.
In another instance, MCM agreed to a $20.5 million class action settlement. This settlement provided restitution for approximately 41 million consumers who had received unauthorized robocalls from MCM.
Why is Midland Credit Management Calling Me?
They Purchased Your Debt
MCM purchases large batches of charged off consumer debts. When your original creditor wrote your debt off and charged it off, they likely sold your debt to MCM. Now MCM is calling to collect on that debt.
Unfortunately, these batches of debts are often sloppy and contain incorrect information. In fact, the CFPB found that MCM was purchasing large batches of debts where the balance listed was only an “estimate” and may not have been accurate. This means the balance they are calling to collect may not even be the correct balance.
You’re Not Even the Right Person
Many consumers have reported that this phone number is calling them for debts they do not owe.
In fact, one consumer reported on 800notes, “Collection agency…that repeatedly calls my house looking for someone that does not live at my house or has use of this phone. They have repeatedly called and harass me. I have asked repeatedly to be taken off the list and they continue to call.”
On FindWhoCallsYou, another consumer reported receiving more than 20 calls from MCM using different numbers, all from overseas callers, despite the fact that the company did not even know who the consumer was.
Tactics They Use
Pressure and Urgency
The collectors calling from this number often use pressure and urgency to scare consumers into paying. They may tell you that you must pay immediately or something bad will happen. In fact, many consumers have reported that the collectors at this number have threatened to arrest them or have them put in jail if they don’t pay.
One anonymous consumer complaint on 800notes says, “They just called me talking about taking me to jail if I don’t pay them.”
Another consumer reported, “Harrassing!!! Calling my work!!! Foreigner that is barely understood, going by Joe Hart. Threatening to have me arrested.”
This is illegal. Debt collectors cannot threaten to have you arrested or put in jail for not paying a debt. Debt collectors cannot claim to be government officials or law enforcement officers. If a debt collector has threatened you in this way, you may have a claim against them.
Contacting Family and Workplace
Another tactic they use is calling your family members or workplace. Consumers have reported that MCM has called their parents, grandparents, and workplaces looking for them.
On 800notes, one consumer reported, “Called my dad looking for me and asking for personal info.”
Another consumer reported, “Same situation. Called parents but using my name. My dad almost gave out my info.”
The Fair Debt Collection Practices Act (FDCPA) strictly limits what a debt collector can say to third parties. They can only call third parties to find out where you live or work, and they cannot disclose that they are collecting a debt.
Calling your workplace or your parents and pressuring them for information or money is a violation of the FDCPA. It is also a way that debt collectors pressure consumers into paying debts.
What Midland Credit Management Doesn’t Want You to Know
The Debt is Already Charged Off
MCM doesn’t want you to know that your original creditor has already charged off your debt and taken a tax deduction for it. They don’t want you to know that they purchased your debt for pennies on the dollar.
They want you to feel like you still owe the debt and you owe it to them. But the reality is that they are simply trying to turn a profit on your debt. They don’t care about your relationship with your original creditor or making things right with them.
In fact, even if MCM only collects a small portion of the balance due on your debt, they are still turning a profit. They purchased your debt for 3-7 cents on the dollar, so if they collect even 10 cents on the dollar, they are turning a profit.
Settling the Debt May Not Help
MCM may offer to settle your debt with them for less than the full balance. While this may sound appealing, be aware that settling a debt may not always help.
Depending on how the account is reported to the credit bureaus, a settlement could actually damage your credit further than it already is. Whether settling the debt helps or hurts depends on a variety of factors, including how old the debt is and your current credit situation.
The real problem with MCM is not the actual debt, it’s the fact that the debt is on your credit report. It may be damaging your credit score and it may be preventing you from getting approved for a mortgage, auto loan, or employment.
How to Get Them to Stop Calling
Keep a Record
If you want to get the calls from 877-366-1520 to stop, it’s essential that you keep a record of every call. Every time they call, write down the date, time, and details of the call.
Save voicemails and take screen shots of your caller ID. This documentation will come in handy if you decide to take further action against the debt collector.
Consumer reports say that MCM uses dozens of different phone numbers, but directs callbacks to 877-366-1520.
One consumer reported on RoboKiller that voicemails from a variety of different MCM phone numbers all directed callbacks to this same number. He also reported that there was heavy background noise from a call center when he called the number back, suggesting it was routed to an overseas call center.
Dispute the Account with the Credit Bureau
Instead of engaging with MCM directly, your best bet for getting them to stop calling is to dispute the account with the credit bureaus. MCM has a history of not verifying debts when they are disputed.
In fact, the CFPB found that MCM was relying on robo-signed affidavits when verifying debts. This means that employees were signing hundreds of affidavits every day without even looking at the underlying records.
When you dispute a debt with the credit bureau, they must conduct an investigation and the debt collector must verify the debt with documentation. If MCM cannot provide documentation and prove that they own the debt and that it is valid, the account may be removed from your credit report altogether.
The Big Picture
They’re Still Operating Despite the Fines
Despite being fined over $103 million for their practices, MCM is still operating and collecting debts. In fact, in 2020, the CFPB sued Encore Capital Group, MCM’s parent company, for violating the terms of a 2015 consent order.
Essentially this means that despite agreeing in 2015 to stop their bad practices, they continued to operate the same way. The Massachusetts Attorney General found that MCM was making as many as 15 calls in 7 days to consumers, far exceeding the state’s limit.
MCM is currently the most complained about company in the CFPB’s debt collection category in 31 states. Clearly these practices are not isolated incidents.
You’re in Control
Debt collectors like MCM rely on consumers not knowing their rights. They rely on consumers feeling guilty, scared, or overwhelmed. But the reality is that you do have rights.
The FDCPA, the FCRA, and the TCPA all provide protections for consumers. And as we’ve seen, MCM has been held accountable for violating those rights. You don’t have to put up with their harassment. You don’t have to answer their calls. And you certainly don’t have to trust a company that has been fined over $100 million for their bad practices.
Conclusion
It’s Time to Take Action
If 877-366-1520 is calling you, the worst thing you can do is nothing. Every day that account sits on your credit report, it could be affecting your credit score. It could be preventing you from qualifying for a mortgage or auto loan.
The phone calls are designed to wear you down and pressure you into paying, but the real issue is what’s happening on your credit report. It’s time to take action.
At FightCollections.com, we help consumers fight back against debt collectors like Midland Credit Management. We challenge inaccurate, unverified, and illegal accounts on your credit report on your behalf, using the same laws that MCM has been found to be violating.
Contact us today for a free consultation.
