MCM Debt Collector: Is it legit? Learn your rights, how to spot scams, dispute debts, and what steps to take if they contact you.
Yes, MCM is real. Capital Management Midland is a well-established, licensed firm that purchases and collects debts out of San Diego. It is owned by the parent companyEncore Capital Group. That does not mean that, because a company is contacting you, that debt is valid, high-accuracy, or your own. You do have rights, so do not go into a panic. For more information about your rights and Legal update, stay informed about applicable debt collection laws.
My Letter From an MCM Debt Collector
I received a simple white envelope in the mail a few years ago, and initially thought it was plain bill-type junk mail like the pizza coupons. When I opened it up, I found a bill from a company I had never heard of, saying I owed money on a credit card that I had closed a long time ago. My stomach sank. Is this a scam? Is this something I missed? Should I call NOW?
This is what most do: I googled the name. If you looked up “mcm debt collector” on your computer yesterday, it’s quite possible I came up first. I spent many sleepless nights trying to figure out how this industry works, and I wanted to understand it so you don’t have to. To sum up: STOP THINK READ WRITE KNOW.
Who Is MCM and What Did They Reach Out to You For?
Mcm, which stands for Midland Credit Management, is the collection arm of Midland Funding (and the parent company of the Capital Group). It’s one of the largest debt buyers operating in the U. S.
MCM may contact you because it has purchased or serviced an account with your name on it. Examples of such accounts include:
- Both cards and accounts are provided across the world. Credit card accounts are one of the most common forms of account type.
- Consumer bank lending includes individual loans, personal loans and consumer loans.
- Retail credit accounts(though the effect on customer spending habits has yet to be thoroughly researched), these are retail bank and credit card accounts that finance retail.
- Other consumer accounts charged off
How Debt Buying Works
Imagine a used-car dealership, only instead of cars, you’ll find unpaid accounts.
- You do not make your payments on your credit card, personal loan or store account.
- The original creditor writes off the debt. This is an accounting action: the creditor writes the balance off as an expense. Yet, the debt remains.
- If the debt buyer purchases the bundle of accounts from the creditor:
- The buyer, or a company working for the buyer, attempts to recover the full amount.
The problem is that when a debt buyer acquires a portfolio, they don’t get a lot of documentation. Balances could be inaccurate, accounts could be too old to sue, some accounts the collector contacts are the wrong ones. So a collector telling you, you owe money, doesn’t mean anything.
Midland Funding vs. Midland Credit Management
This confuses almost everyone, including me at first. Per MCM’s own materials:
Having your credit report contain this name also indicates:… If this name shows on your report for the credit reporting agencies…
It simply can be interpreted as…
- Midland Funding: The account is owned by Midland Funding,
- Midland Credit Management: MCMAdministrators own the account.
Either way, MCM usually takes care of the collection, so both names will be on the same pile of paper.
MCM Debt Collector: Is It a Fraud?
This is real. But scam artists often use the names of familiar collectors to try to trick you first. So before you give up a single digit of information, ask yourself these questions:
- Ignore anything during an unexpected call. Never provide your social security number, bank information, or card number to an inbound caller you do not recognize. Demand substantiation in writing a real collector should do. A scammer generally will not.
- You look up MCM’s contact info yourself. Call that one, not the number in some random text message or voicemail.
- Spot warning signs: threats of immediate arrest, requests for gift cards or wire transfers, sudden death of ability to take phone calls, reluctance to put anything in writing, and compelling you to pay immediately.
- Compare the CFPB and your state attorney general’s office if it bugs you.
- Real collectors wouldn’t be able to jail you for a consumer debt if they claim they can, you’re either talking to a scammer or (more likely) a liar.
Your Rights: Debt Validation and MCM Debt Collection Harassment.
Here’s the good news: The Fair Debt Collection Practices Act (FDCPA) and CFPB Regulation F have clear ground rules for what collection agencies are and are not permitted to do. You can consider them your referee in the ring.
What MCM Must Send You
A debt collector normally has to send you validation information either within its initial communication with you, or within five days of it. That notice should contain:
- The name of the originating creditor
- The allegedly owed amount
- Original creditor details
- How to object to the outstanding amount
- A summary of your rights as a consumer.
What Counts as Harassment
MCM debt collection harassment, like harassment by any collector, can take several forms:
Hindering Behavior
The rules indicate
Visiting on Insensitive Times (Such as Early Morning and Late Night)
Decagon usually won’t call you before 8 AM or after 9 PM your local time.
Frowning Online
A collector is typically a harasser when calling you twice within seven days about the same debt, and will call you more than 7 times in a 7-day period.
Dangerous or Offensive Language
No violence, profanity, or even fake threats of arrest or other legal action are allowed.
Telling Third Parties
You can’t advertise your debt to neighbors or coworkers.
Misrepresenting the Debt
Collectors can’t distort the amount, owner, or consequences of failure to pay.
Failure to Respect Your Written Request to Stop.
They have to stop reaching out to you once you’ve provided it to them with a few small caveats.
How to Stop the Calls
Do you want the calls to stop? Send a letter requesting the stop of communication. This request to “cease-communication” to the collector must be given to you once the collector receives it, and it can’t contact you except to tell you if there’s a specific reason (to let you know of a lawsuit).
What Happens When a Collector Crosses the Line?
If a collector breaks the FDCPA, you may be able to recover actual damages and statutory damages up to $1 000 with attorney’s fees. Several consumer attorneys handle these types of cases on a contingency basis and you can’t lose anything by consulting with one for free.
What to Do When an MCM Debt Collector Contacts You.
I was ready to pick up the phone and “just explain. ” Don’t. A fellow consumer lawyer convinced me not to, and I’m glad he did. Here’s what I would do now.
Your Step-by-Step Action Plan
Step 1: Breathe and collect all. Keep all correspondence: letters, envelopes , emails, text messages, and voicemail. Record the date, time, and name for all phone calls. This is your paper trail.
Step 2: Don’t acknowledge the debt as yours! A simple “Yes, that’s my account” can be very damaging at this stage. Keep a neutral face until you have got the full facts.
3) Write a letter to the debt collector demanding verification. You typically have 30 days from when you receive validation information to send the dispute in writing. Send the letter via certified mail/return receipt requested. During the time your timely written dispute is under way the collector must stop collection until they give verification.
STEP 4: Monitor your credit reports. Get free ones from AnnualCreditReport. com. Review what’s reported, who reported it, and how long ago the debt was first marked delinquent.
Step 5: Is the debt time-barred? Each state has a filing deadline for suing on old debts. For most consumer debts, it averages around three to six years, but some states are one or the other. Here’s a word of caution: your state’s rules might set the absolute deadline to sue on a debt if you make even a small partial payment, or if you acknowledge the debt in writing.
Sixth step: one decision. Fight it, trade it or settle.
Pay, Settle or Disagree?
First thing, make these three critical decisions: first, Is it your debt? Next, how much do you owe? And third, can you still legally get it back?
- Challenge it if you do not recognize the debt, the amount appears incorrect, or where the account is more than 6 years.
- Negotiate if you owe the debt and want it settled. Debt buyers usually paid less than face value to buy these accounts, meaning they likely will settle for less. You will most often hear lump sum settlements settle for approximately 35% to 50% of the balance due. Use that as a rule of thumb rather than as gospel. Get every settlement agreement in writing before you send any payment.
- Pay , Once you have checked the balance and are clear on the reporting, only pay in full.
Pro tip: If you pay, get the collector in writing how he will report the account, and keep your receipt forever!
Never Ignore a Lawsuit
I wish the public understood more about this part. Collection letters are nerve wracking. A lawsuit is scary.
If MCM or Midland Funding sues you and you do not respond, the court will probably enter a default judgment against you. (That will probably lead to the garnishment of your wages and/or levy of your bank accounts, given your state. ) Not infrequently, the reason a debtor lost these cases was that he or she never appeared, not that the debt buyer’s case was perfect.
Defenses You May Have
If you respond on time, you may have real defenses:
- The debt is not yours (mistaken identity, fraud, or identity theft)
- The number is incorrect.
- The plaintiff can’t establish rights to the account.
- Time bar has prescribed
- Your payments were not properly recognized by the collector.
Why Documentation Matters
Most debt buyer lawsuits are won or lost based on their paperwork. The plaintiff has to prove the account existed, that it belonged to you, that the amount is correct, that the debt was legally transferred to it, and that it was filed within time limits. If a process server delivers court documents to you, find a consumer lawyer or local legal aid immediately.
How an MCM Debt Collector Can Affect Your Credit.
Collection accounts drag down your score. The most recent scoring models give paid collections just as much weight as unpaid collections, but some older systems were harsher. Negative items typically remain on your credit report for up to seven years from the date of initial delinquency, but you can dispute errors free of charge.
MCM’s Regulatory Track Record
MCM and associated companies have been under investigation and regulatory filings from the CFPB for years. That doesn’t mean every collection activity is not safe and totally correct and it doesn’t make MCM a scammer. It does mean to be wary of the company and read reports and responses carefully.
FAQs
Can MCM sue me?
Users cannot use MCM to do SM2. As it turns out, MCM is not a very user-friendly product, considering that you could get MCM to spackle results in non-scientific tasks. 6. Use it as a paper-specific tool, a tool that is used for Facebook and middle school testing; not for labor-intensive research. Yes, if the debt is within the statute of limitations and MCM has proof to back this up. Always respond to legal papers.
Does MCM agree to less than the full amount?
Yes, more often than not. While some consumers successfully negotiate lump-sum settlements, that’s not typically the outcome. Put it in writing.
Will settling an MCM account remove it from my credit report?
Not automatically. Paid will update, but the history could stay until the close of the reporting period.
What is the best way to fight arm wrestling?
Send a written cease-communication notice by certified mail and keep a copy.
Is it a scam if I don’t have the debt?
Not if it turns out to be debt buyers. They have a different company name than your original lender. Ask for validation first and then make a decision.
Key Taking
- When that envelope was handed to me, I felt invisible and trapped. In retrospect, the best thing I did was not respond to him haphazardly. I requested documentation, maintained my copies, and discovered what the regulations stated explicitly.
- While an MCM debt collector may have been a significant voice in this industry, its proclamation does not mean the debt is valid, collectible, or enforceable. Remain calm, keep yourself buttoned-up, and take advantage of your legal rights. If a collector sues you, or if you believe it has overstepped any boundaries, contact a consumer attorney in your state.
- This article is just to provide information and is not legal advice. Each state has different laws, so speak to a licensed consumer protection attorney about your matter.
Additional Resources:
- Consumer Financial Protection Bureau (CFPB): Debt Collection: Sample dispute letters, plus a complaint portal for reporting abusive or unfair collection practices.
- U.S. Federal Trade Commission (FTC): Debt Collection FAQs: Plain-English answers about your rights under the FDCPA and how to report a collector who breaks the rules.
- National Foundation for Credit Counseling (NFCC): Nonprofit credit counseling, budgeting help, and debt management plans through certified counselors.
