The Consumer Financial Protection Bureau ("CFPB"), the federal government's consumer-protection muscle levied stiff penalties against Encore Capital Group (the parent to Midland Funding, LLC and
Midland Credit Management) and
Portfolio Recovery Associates. Midland and Portfolio are two of the largest debt buyers that sue on consumer debt.
The CFPB found that Midland and Portfolio committed numerous consumer-law violations such as collecting debts based on inaccurate information, failing to investigate disputes, and implying attorney involvement in matters.
Encore Capital Group (Midland) will issue $42 Million in refunds, stop collections in over $125 Million in debts and pay $10 Million to the CFPB's Civil Penalty Fund.
Portfolio Recovery Associates will issue $19 Million in refunds, stop collections in over $2 Million in debts and pay $10 Million to the CFPB's Civil Penalty Fund.
As we can see, the CFPB is working hard to stop these debt buyers from cutting corners and hurting the public. Contact us right away if you've received any communication from Midland Funding, LLC or
Portfolio Recovery Associates.