How to Resolve a Debt With Encore Capital Group

Receiving a debt collection notice in the mail ruins your day. No one likes unexpected expenses. You especially hate them when they’re long-forgotten or incorrect. Debt collection is a massive business in the US. Creditors rarely let you off the hook easily.

Encore Capital Group is a well-known collection agency. They purchase overdue consumer credit and utility debts. Then they pursue debtors for the amount owed. Encore Capital Group owns Midland Credit Management, Inc. You’ll probably hear from Midland if Encore owns your overdue account.

What to Know About Encore Capital Group

Encore Capital Group is a global receivables management services company. They have offices in the U.S., Europe, Asia, and Latin America. The company operates various subsidiaries that collect customer debts. Midland Credit Management is their US-based subsidiary.

Encore’s corporate headquarters are in San Diego, California. Midland Credit Management has locations in Arizona, California, Minnesota, Michigan, and Virginia.

You can call 877-445-4581 for general inquiries about Encore Capital Group. The phone numbers for Midland Credit Management are 800-296-2657 and 877-420-0039.

Encore Capital Group doesn’t have a Better Business Bureau profile. However, Midland Credit Management does. Midland’s BBB profile lacks accreditation. The company has received hundreds of complaints over recent years.

The Consumer Financial Protection Bureau (CFPB) sued Midland Credit Management for pursuing time-barred debts. They also failed to validate client accounts properly. Midland agreed to pay $79,000 in consumer redress. They also paid a $15 million civil penalty.

What to Do if Encore Capital Group Contacts You

Don’t ignore a debt collection notice from Encore Capital Group. Throwing it away won’t solve the problem. Ignoring it leads to even more issues. Read the notice carefully. See if you recognize the debt.

Under the Fair Debt Collection Practices Act (FDCPA), you have 30 days from receipt. You can dispute the debt’s validity during this time. You can also ask for proper supporting evidence. You need debt validation before any further discussion.

Debt validation ensures Encore Capital Group is the proper owner. It confirms they have the right to collect from you. Debt collection agencies sometimes purchase obligations for pennies on the dollar. They try to scare people into paying without establishing clear ownership. Oftentimes, the debt amount contains errors.

The FDCPA requires collection agencies to produce proof of ownership. They must provide supporting information when customers request it. If Encore Capital Group cannot correctly validate your debt, they must stop. All collection efforts against you must cease.

Request Debt Validation

Your debt validation letter should request specific information. Ask for the original creditor’s name and account number. Request an itemized breakdown of the debt amount. Ask for proof they own the debt. Include copies of any relevant documents.

Send your letter via certified mail with return receipt. Keep copies of everything you send. Document all communications with Encore or Midland.

How to Resolve an Encore Capital Group Lawsuit

If Encore Capital Group validates your debt, they can take further action. Debt collectors like Encore typically give you months to respond. If enough time passes and the statute of limitations draws near, they may sue. You want to avoid an adverse outcome in a debt lawsuit.

A court-ordered judgment allows Encore Capital Group to garnish your wages. They can freeze your bank account. Wage garnishment takes a hefty bite from your weekly pay. You’ll struggle to afford shelter and groceries.

A Court Summons and Complaint means Encore Capital Group is suing you. Take a few minutes to clear your head. Then review the Complaint carefully. Look for errors that don’t agree with your records. Check for the wrong debt amount or mistakes in your account number.

Draft an Answer to the Lawsuit

You need to draft an Answer to respond to the lawsuit. An Answer outlines any defenses you have to the claim. Even without a defense, you still need an Answer. Responding prevents Encore from asking for a default judgment.

Our partner Solo can help you draft an Answer quickly. You’ll respond to each allegation in the Complaint. You’ll raise any affirmative defenses. You’ll file your Answer before the deadline.

If Encore Capital Group will likely win the lawsuit, you have options. You can repay or settle the debt before your court date. Resolving the obligation means Encore drops its case. You avoid a judgment.

Settle Your Encore Capital Group Debt

In a debt settlement, you offer your creditor a portion. Usually you pay at least 60% of the debt’s value. In exchange for a lump-sum payment, the creditor drops legal claims. They release you from the remaining balance.

Midland Credit Management may negotiate a debt settlement. They consider it if you promise a lump-sum payment. You must clear the remaining amount within a short period. Debt settlement works best if you have cash saved. You might expect to receive money soon.

Settling your debt helps you avoid a judgment and wage garnishment. You’ll save money and move on from this challenge.

Example: Joan receives notice that Encore Capital Group is suing her. The old credit card debt is $1,000. Joan wants to avoid court. She files an Answer to the lawsuit. Then Joan offers Encore Capital Group $600 to settle. That’s 60% of the amount she owes. Encore counter-offers at $700. Joan accepts. The debt is resolved and Encore drops the case.

How to Negotiate With Encore Capital Group

Start by determining what you can afford. Calculate 50-70% of your total debt. Gather any cash you have available. Consider selling items or borrowing from family.

Make your initial offer in writing. Be professional and direct. Explain your financial hardship briefly. State your settlement amount clearly. Include a deadline for their response.

Expect them to counter-offer. Don’t accept the first counter-offer. Negotiate until you reach an acceptable amount. Get the settlement agreement in writing before paying. Never send money without written confirmation.

Our partner Solo can help you negotiate and settle your Encore debt. The platform handles all communications for you. You can resolve your debt without court drama.

Your Rights When Dealing With Encore Capital Group

The FDCPA protects you from abusive collection practices. Encore and Midland cannot harass you. They cannot call before 8 a.m. or after 9 p.m. They cannot contact you at work if you tell them not to.

They cannot threaten you with actions they won’t take. They cannot claim you’ll be arrested. They cannot add unauthorized fees to your debt. They must tell you the debt amount and creditor name.

You can request they stop contacting you. Send a cease communication letter via certified mail. After receiving your letter, they can only contact you to confirm. They can also notify you of specific actions like lawsuits.

Be Proactive When Dealing With Encore Capital Group

Your most potent weapon against Encore Capital Group is staying proactive. Don’t be afraid to request debt validation. Don’t let a debt collector push you into a judgment. If you’re likely to lose a debt lawsuit, take action. Repay or settle the obligation. You can move on, free of judgment worries.

Document everything. Keep copies of all letters and emails. Record dates and times of phone calls. Note the names of representatives you speak with. Build a paper trail.

Know your state’s statute of limitations on debt. Encore cannot sue you for time-barred debt. If they try, you have a strong defense. Raise the statute of limitations in your Answer.

Consider your options carefully. Weigh the costs of settling versus going to court. Factor in the stress and time involved. Make the choice that best fits your situation.

You have rights and options. You don’t have to face Encore Capital Group alone. Take action today to protect your financial future.