Midland Credit Management (MCM) is a well-known debt buyer and collection agency that buys delinquent consumer debts (like credit cards and loans) and tries to collect the full balance. Headquartered in San Diego and owned by Encore Capital Group (Nasdaq: ECPG), MCM purchases charged-off accounts from banks and lenders (including store cards like Synchrony or Comenity Bank) and then contacts debtors to resolve those debts.
In simple terms, MCM isn’t a scam – it’s a real company that specializes in debt collection. However, its tactics can feel aggressive and it has drawn many consumer complaints. This guide explains who MCM is, how it operates, and what you should do if they contact you.
What Is Midland Credit Management?
Midland Credit Management (often called MCM) is a subsidiary of Encore Capital Group and one of the largest debt buyers in the U.S.. In practice, MCM buys unpaid debts (often at a discount) from creditors like banks, credit card issuers, medical providers, and utilities. Once MCM owns the debt, it becomes the creditor —
for example, if Community Bank sold a charged-off account to MCM, then MCM would send a notice saying “Community Bank has sold your account to Midland Credit Management”. MCM then attempts to collect the full balance. This means you might suddenly start getting calls, letters or emails from MCM even if you never dealt with them before.
Key points about MCM’s operations:
- Debt Buyer: MCM owns the debts it collects. If a debt is sold to them, they have legal rights to try to collect it.
- Collection Tactics: They’ll typically contact you by phone or mail, offer payment plans or settlements, and if unpaid, may file lawsuits for a judgment.
- Common Accounts: MCM buys a wide range of debts – credit cards (from Capital One, Citibank, etc.), retail/store cards (Synchrony, Community Bank, etc.), personal loans, utilities, and sometimes medical bills.
Understanding that MCM bought your debt (rather than being the original lender) is crucial. Because they now “own” the debt, they can report it to credit bureaus and even sue you in court if you don’t pay. However, you also have rights under laws like the Fair Debt Collection Practices Act (FDCPA) – for example, they must validate the debt if you ask, and can’t harass you.
Is Midland Credit Management Legit?
Yes, Midland Credit Management is a legitimate, licensed debt collection company – not a random scam operation. It is a fully legal business (a subsidiary of Encore Capital Group) and one of the nation’s largest debt buyers. Even MCM’s own materials say it is a “legit and reputable debt collection company”.
However, being legitimate doesn’t mean they always play fair. The CFPB and state regulators have sued and fined MCM in the past for violating collection rules. For example, the CFPB cited MCM for filing lawsuits without proper documentation and not providing required debt disclosures.
Key legitimacy tips: A real MCM agent or letter will identify the company (often using the number (800) 296-2657 or similar) and give details about the debt. A bogus caller or fake summons usually tries to hide details or uses threats. The CFPB advises that a legitimate collector will provide their name, company, address, phone number and details of the debt.
If a collector refuses to give basic information or threatens arrest, it’s a red flag. In summary, Midland Credit Management itself is not a scam, but scammers often impersonate it. Always verify any demand by contacting MCM directly (using a number from its official site) or checking court records if sued.
Should Midland Credit Management Pay You?
No – you do not get paid by them. Instead, MCM will usually ask you to pay them. (Occasionally, very old accounts in extreme cases might be considered for “pay for delete,” but that’s different.)
Should You Pay Midland Credit Management?
If you are sure the debt is valid and you can afford to pay, it may make sense to settle to avoid legal issues. But first, always validate the debt. Before sending any money, ask MCM for a written validation notice or send your own debt verification letter.
By law, they must send a notice within 5 days of first contacting you, and you have 30 days to dispute. Verify that the debt is actually yours, the amount is correct, and MCM truly owns it.
Once validated, you have options:
- Dispute: If the debt isn’t yours or is wrong, you can dispute it with MCM in writing and with credit bureaus. If they can’t prove it’s valid, you don’t have to pay.
- Negotiate or Settle: If it’s valid, you might negotiate a lower lump-sum settlement or a payment plan. MCM may accept less than the full balance. Sometimes you can negotiate a “pay-for-delete” (ask them to remove negative credit report entry in exchange for payment), but MCM’s policy on that is unclear. It never hurts to ask politely.
- Refuse Payment: If the debt is very old (past statute of limitations), or if they can’t validate it, some people choose not to pay. Note however that ignoring a valid debt often leads to more calls, negative credit reporting, and even lawsuits.
Action steps if contacted by MCM:
1. Ask for Debt Validation. Write MCM a letter requesting proof of the debt (you can find sample letters online). During the 30-day dispute window, MCM cannot continue collection calls.2. Review Your Credit Report. Look for the account MCM claims. If it’s on your report, you may already have seen it. If not on your report or was paid, note this.
3. Check Statute of Limitations. Debts have a time limit for lawsuits (varies by state, often 3-6 years). Paying or acknowledging an old debt can restart the clock in some places. Be cautious with payments on very old debts.
4. Negotiate or Dispute. Decide if you’ll dispute (if info is wrong) or negotiate. If negotiating, consider offering a lump sum at a discount. Get any agreement in writing.
5. Monitor Communications. Save all letters and record dates/names of calls. MCM agents often call from toll-free numbers (people report numbers like 800-296-0721, 800-265-8825, etc). If they call repeatedly or are abusive, know your rights (FDCPA prohibits harassment).
Remember: Paying them is not mandatory unless the debt is legitimate. But ignoring a legitimate debt can lead to lawsuits. If you can’t pay, at least respond. MCM’s own site warns that “if you don’t resolve your debt, it’s not going to go away” and they may sue and obtain a judgment. On the other hand, if the debt is disputed or invalid, you have every right to refuse payment and ask MCM to stop contacting you.
Lawsuits and Fake Summons
Lawsuits: Midland Credit Management often uses lawsuits to collect debts when calls and letters fail. The CFPB notes that Encore (MCM’s parent) filed thousands of lawsuits after a 2015 consent order. If you ignore a lawsuit, MCM can win by default.
A judgment allows them to garnish wages or place a lien. However, many consumer reports (and even one WalletHub review) suggest that respondents often win or have cases dismissed if they actively defend themselves.
- When sued, you should get a Summons and Complaint by mail or in person. It will name the court, case number, MCM (or its law firm) as plaintiff, and tell you how long to respond (usually 20-30 days).
- DO NOT IGNORE a lawsuit. Respond by filing an answer (even a simple denial) in court. If you don’t, the court can enter default judgment and allow wage garnishments or liens.
- In your answer, you can dispute the debt’s validity, statute of limitations, or ask for documentation. Often debt buyers rely on incomplete records, so there is a chance to defeat the claim if they don’t prove the debt clearly.
Fake Summons: Scammers sometimes forge documents pretending to be MCM or courts to frighten you into paying immediately. These fake summons may lack basic details or threaten you with jail (which is illegal for debt). Legitimate lawsuits are filed in civil court and come with official court letterhead, case numbers, and typically a signature of a court clerk.
If you receive a suspicious document (for example, emailed “civil petitions” or payday loan messages), verify it: look for a case caption (your name vs. MCM), a court address, a judge or clerk signature, and a response deadline. If any of this is missing or seems off, call the clerk of court in the county where it claims to be filed – they will have the record if it’s real. The Texas Attorney General warns: before paying, always confirm the debt is real. Scammers often don’t know basic details about you, whereas real collectors do.
Fake Summons Red Flags:
- No official court name, logo, or case number.
- Threats of arrest or police involvement (debt collection does not involve the police).
- Requests for immediate “bail” or payment to avoid court.
- Unusual service method (e.g. faxed or emailed, rather than a certified mailed notice or sheriff service).
If in doubt, contact an attorney or the court clerk. Remember, a real Summons will not say “Pay here or go to jail” – it will instruct you on how to file a written defense.
Contact Info and How to Respond
If you owe MCM, you may eventually need to pay them or at least address the account. MCM provides these official contact channels:
- Phone: (800) 296-2657 (available daily, see business hours on their site).
- Mail: P.O. Box 939069, San Diego, CA 92193.
- Website/Account Portal: you can look up your account and make payments at MidlandCredit.com (they often send a letter with a link and instructions).
If MCM calls you, you can answer to verify information, but do not give out personal banking info on a call. They will typically instruct you to log into their secure portal or mail in payments. If you have a dispute or want to negotiate, it’s best to communicate in writing (this creates a record).
Dealing with Contact Attempts:
- If MCM calls repeatedly in a harassing way, remember your rights. Under the FDCPA, they can’t call before 8 AM or after 9 PM, or call repeatedly to annoy you. You can ask them to stop calling and communicate only by mail.
- Always ask for MCM’s written validation notice, as mentioned. If they already provided it, carefully review the information.
- If someone claiming to be MCM calls and you suspect a scam, hang up and call MCM’s official number to verify. Never pay by wiring money; only use official channels.
Medical Hardship: MCM notes that if you face a hardship (job loss, illness, military service, natural disaster), they may pause collection activities under their “Consumer Bill of Rights”. If you have a real difficulty, inform them and provide proof (e.g. unemployment, disability) so they can possibly offer a reduced payment or suspension.
Reviews and Reputation
Midland Credit Management has a mixed-to-poor reputation among consumers. Online reviews (from sources like WalletHub and the CFPB complaint database) highlight thousands of complaints. Many users on forums and review sites describe MCM as aggressive and unfriendly. For example, reviewers have accused MCM of harassing calls, confusing paperwork, and even alleged “re-aging” of old debts to keep them collectable.
One consumer described MCM as “financial terrorism at its finest” and noted that many cases against them get dismissed if consumers respond in court. Another said “I never actually talked to an actual person; I always chatted… and that was horrible. Bad customer service”.
On the other hand, MCM is accredited as an A+ company by the BBB, but it is not BBB-accredited and has an A+ rating with thousands of consumer complaints on file. The BBB profile notes that MCM’s business is to resolve past-due debts and help consumers with payment plans. Still, the sheer volume of negative reviews (often 1-star) suggests caution.
Upsolve, a nonprofit credit counseling site, acknowledges that Midland (MCM’s parent company) is legitimate but highlights hundreds of complaints to the CFPB and BBB about “aggressive tactics”. Consumer attorneys also note common issues: repeated attempts to collect paid or disputed debts, incorrect credit reporting, and suing on time-barred debts.
The verdict: many people resent dealing with MCM. If you do owe a debt, they will likely push you to pay. However, if MCM is handling a debt you truly owe, resolving it can take the hassle off your plate. Check sites like WalletHub or personal finance forums for user stories, but remember that complaints are often more visible than success stories.
FAQ
Q: Is Midland Credit Management a scam?
A: No, MCM itself is a legitimate company. It is a debt collector that buys real debts. However, scammers often impersonate it. Always confirm with official contact info.
Q: I never borrowed money — why is MCM contacting me?
A: It’s possible there’s a mistaken identity or error. Ask MCM in writing to validate the debt. Check your credit report to see if an unknown account is listed. If they can’t prove it’s yours, you can demand they stop contacting you.
Q: Are calls from MCM safe?
A: Legitimate MCM calls will come from numbers like (800-296-2657) or similar toll-free lines. If someone calls claiming to be MCM and uses a strange number or pressure tactics (demanding payment by gift card, for example), hang up. You can always call MCM back on their official number to verify.
Q: Should I pay Midland Credit Management on an old debt?
A: If the debt is real and within the statute of limitations, paying or settling it can clear it and avoid lawsuits. But if the debt is time-barred, paying may restart the clock in some states. Carefully consider your state’s rules before paying on a very old debt. You may want legal advice.
Q: I got a summons from MCM – what do I do?
A: Treat a real court summons seriously. You must respond in the time given (usually 20-30 days). If unsure it’s real, contact the court directly (using their official info) to check. Then file an answer with the court. Even if it’s a fake, verify and do not pay blindly.
Q: How do I dispute something with MCM?
A: Write a debt verification letter within 30 days of their first contact, asking them to prove the debt and provide documentation. Send it by certified mail. This forces MCM to pause collection until they respond. If you’re disputing a credit report entry, you can also dispute with the credit bureaus directly.
Q: Will paying MCM improve my credit score?
A: Paying off a collection can help your situation, but a paid collection may still appear on your credit report (though some newer credit scoring models ignore paid collections). The main credit damage usually happened when the account first went to collections. Get any agreements in writing (some negotiate deletion in exchange for payment).
Q: How can I contact MCM to negotiate?
A: Use the official phone (800-296-2657) or mail (PO Box 939069, San Diego, CA 92193). Online, you can log into your MCM account portal. Be cautious about scammers on social media or forums — always stick to official MCM channels.
Summary
Midland Credit Management is real but formidable. It is not a “debt collection scam” – it’s a large, legitimate debt buyer. But it is also aggressive, and consumers frequently encounter hard-sell tactics and legal threats. The best strategy is to verify any claim first. Check your credit report, request debt validation, and understand your rights under the law.
If the debt is valid, consider negotiating or paying the minimum necessary to satisfy it; if it’s not valid, dispute it or let it go (with caution about statutes of limitations). Never ignore official lawsuits or court papers — a default judgment can have serious consequences. And if something feels off (like a creepy "fake summons" or a threatening call), stop and check the facts.
Stay calm and informed. Use this guide to know what to expect when dealing with MCM: validate everything, understand the consequences, and respond thoughtfully. With the right steps, you can handle MCM’s calls and letters and protect your rights.
