Sued by Encore Capital Group in Kansas? Here's What to Do Next

2015 · consent order

$52M+ total ($42M consumer refunds + $10M CFPB civil money penalty), plus order to stop collection on $125M+ in debts

CFPB consent order against Encore Capital Group, Midland Funding, Midland Credit Management, and Asset Acceptance finding the companies attempted to collect debts they didn't own or that were inaccurate, relied on robo-signed affidavits in court, and pressured consumers with misrepresentations about lawsuits. The order required documentation before filing suit and disclosures when collecting on time-barred debt.

CFPB source

2020 · lawsuit settled

$15M CFPB civil money penalty + $79,308.81 consumer redress; extended 2015 order conduct provisions for five additional years

CFPB filed suit and reached a stipulated settlement finding Encore and its subsidiaries violated the 2015 consent order by suing consumers without possessing required documentation, failing to provide required disclosures when consumers requested loan documentation, and suing on debts whose statutes of limitations had expired in violation of the FDCPA and CFPA.

CFPB source

Statute of Limitations Defense

In Kansas, the statute of limitations for credit card debt is 5 years. If your last payment was more than 5 years ago, the debt is time-barred. Encore Capital Group has been the subject of CFPB findings related to suing on time-barred debts — check your dates carefully and raise the SOL defense in your Answer.

Lack of Standing / Chain of Title

As a debt buyer, Encore Capital Group must prove they actually purchased your specific account. Demand the complete chain of title — the purchase agreement, bill of sale, and assignment documents. In Kansas courts, failing to produce this documentation can result in dismissal.

Challenge the Amount

Demand a complete accounting from the original creditor's last statement through the current claimed balance. Any unauthorized fees, post-charge-off interest, or collection costs not in the original agreement should be disputed line by line.

Kansas Wage Garnishment Exemptions

Federal limits apply. Head of household protections available.

Kansas Consumer Protection Act

In addition to the federal FDCPA, Kansas's Kansas Consumer Protection Act may provide additional protections and remedies against Encore Capital Group's collection practices.

Kansas Court System

Small claims limit $4,000. District court handles larger civil cases. Filing fees in Kansas typically range $45-$200.

What is Encore Capital Group?

Encore Capital Group is the largest publicly traded debt buyer in the U.S. They own LVNV Funding LLC and Midland Credit Management. If you are sued by either, Encore is the parent company.

Has the CFPB taken action against Encore?

Yes. The CFPB has ordered Encore subsidiaries to pay millions in fines and restitution for illegal debt collection practices including suing without proper documentation and collecting on time-barred debts.

Can I sue Encore Capital Group?

You would typically sue the subsidiary that contacted you (LVNV Funding or Midland Credit Management), but in some cases the parent company may also be liable for directing illegal collection practices.

How does Encore get my debt?

Encore purchases portfolios of thousands of defaulted accounts from banks and credit card companies, usually for 3-5 cents per dollar. They then attempt to collect the full original balance plus interest and fees.

How long do I have to respond in Kansas?

21 days from service.

What is the SOL in Kansas?

5 years for written contracts. 3 years for oral contracts.

Can wages be garnished in Kansas?

Yes. Federal limits apply.

What court handles debt lawsuits?

Small claims up to $4,000. District court for larger amounts.

What is the statute of limitations on debt collection in Kansas?

Kansas's statute of limitations on a written contract is five years under K.S.A. § 60-511, and three years on an oral contract under K.S.A. § 60-512. Kansas courts apply the five-year written-contract limit to credit-card debt when the cardholder agreement is in writing. The clock starts on the date of the last payment or the date the account was charged off. If you are sued more than five years after last activity, statute of limitations is an affirmative defense you must plead in your answer under K.S.A. § 60-208(c)(1) or you waive it. Filing a time-barred collection lawsuit can support a counterclaim under the federal FDCPA at 15 U.S.C. § 1692e(2) for misrepresenting the legal status of a debt and under the Kansas Consumer Protection Act at K.S.A. § 50-626. Partial payment or written acknowledgment can restart the clock under K.S.A. § 60-520.

How much can be garnished from my wages in Kansas?

Kansas wage-garnishment law at K.S.A. § 60-2310 follows the federal Consumer Credit Protection Act limit at 15 U.S.C. § 1673. Creditors may take the lesser of 25 percent of weekly disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Disposable earnings means gross pay minus required deductions like federal and state income tax, FICA, and Medicare. Child support, alimony, and federal student-loan garnishments follow different percentages. Social Security, SSI, VA benefits, unemployment, workers compensation, and most retirement income are exempt under federal law and K.S.A. § 60-2308. After service of the order of garnishment, you can request a hearing under K.S.A. § 60-2310(e) to assert exemptions or correct calculation errors.

Does Kansas Consumer Protection Act apply to abusive debt collectors?

Yes. The Kansas Consumer Protection Act at K.S.A. § 50-626 prohibits deceptive acts and practices in consumer transactions, and Kansas appellate courts have applied it to debt-collection conduct that misrepresents amounts owed, threatens action the collector cannot take, or harasses the consumer. K.S.A. § 50-627 separately prohibits unconscionable acts. A consumer can recover actual damages or a civil penalty of up to $10,000 per violation, whichever is greater, plus attorney fees under K.S.A. § 50-634(b). The Act covers original creditors and third-party debt collectors, which is broader than the federal FDCPA. Combine a Kansas CPA claim with a federal FDCPA claim under 15 U.S.C. § 1692k for maximum leverage. The Attorney General Consumer Protection Division at 1-800-432-2310 also investigates complaints.

What property is exempt from collection in Kansas?

Kansas has generous personal-property exemptions under K.S.A. § 60-2304. A debtor can keep up to $20,000 in motor-vehicle equity, or up to $40,000 if the vehicle is equipped for use by a disabled person. Tools of the trade, including books and equipment used in a profession, are exempt up to $7,500 under K.S.A. § 60-2304(e). Household furnishings, food, and clothing are exempt without dollar limit if reasonably necessary for the family. The Kansas homestead exemption at K.S.A. § 60-2301 protects unlimited home equity on the family residence, although it is capped at $189,050 in bankruptcy under federal BAPCPA. Social Security, SSI, VA benefits, unemployment, workers compensation, and retirement accounts are exempt under federal law and K.S.A. § 60-2308. Exemptions must be claimed in writing within 14 days of receiving the writ of execution.

How do I respond to a Kansas debt-collection limited-actions case?

If you are sued in limited actions under K.S.A. § 61-2802 for a claim up to $20,000, you must file a written answer with the clerk within 21 days of service under K.S.A. § 61-2901, or by the appearance date listed on the summons if earlier. In your answer, deny the allegations you do not know to be true, demand strict proof of the chain of assignment from the original creditor, and assert affirmative defenses including statute of limitations under K.S.A. § 60-511, lack of standing of the assignee, improper venue under K.S.A. § 60-603, and any Kansas Consumer Protection Act or FDCPA counterclaim. The Kansas Judicial Branch offers fillable forms and limited-actions information for self-represented parties. Default judgment under K.S.A. § 60-255 is entered automatically if you do not answer or appear.