Sued by Encore Capital Group in Maryland? 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 Maryland, the statute of limitations for credit card debt is 3 years. If your last payment was more than 3 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 Maryland 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.

Maryland Wage Garnishment Exemptions

Greater of 75% of disposable wages or 30x federal minimum wage exempt. Caroline, Kent, Queen Anne's, and Worcester counties: $145/week minimum exempt.

Maryland Consumer Debt Collection Act / Maryland Consumer Protection Act

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

Maryland Court System

District court handles cases up to $30,000. Circuit court for larger amounts. Filing fees in Maryland typically range $35-$300.

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 to respond in Maryland?

30 days from service.

What is the SOL in Maryland?

3 years for all contract types. This is one of the shortest in the country.

Does Maryland have its own collection law?

Yes. The Maryland Consumer Debt Collection Act provides additional protections beyond the federal FDCPA.

Can wages be garnished?

Yes. 25% of disposable earnings, with minimum weekly exemptions varying by county.

Was the collector suing me licensed in Maryland?

This is the first question to ask in any Maryland debt-buyer suit. Under the Maryland Collection Agency Licensing Act (Md. Bus. Reg. § 7-101 et seq.), any collection agency or debt buyer collecting Maryland consumer debt must be licensed by the State Collection Agency Licensing Board. The Maryland Court of Appeals held in Finch v. LVNV Funding (2016) that judgments obtained by unlicensed debt buyers are void and unenforceable. After Finch, thousands of LVNV judgments were vacated. You can check whether a collector is licensed by searching the Department of Labor's licensing database at the Maryland State Collection Agency Licensing Board page. If the collector who sued you was unlicensed at the time, you may be able to vacate any judgment, get any garnished wages back, and pursue MCDCA claims for actual damages, attorney's fees, and punitive damages. Maryland consumer attorneys routinely litigate licensing-based defenses, and the fee-shifting in the MCDCA means representation often costs nothing out of pocket.

What is the statute of limitations on credit-card debt in Maryland?

Maryland has a 3-year statute of limitations on most contract and credit-card debt under Md. Cts. & Jud. Proc. § 5-101. That is shorter than many states. The clock runs from the date of breach - typically the date of last payment or charge-off. Maryland is a strict state on this: the SOL is a complete defense if pleaded properly, and Maryland Rule 3-308 makes it an affirmative defense that must be raised in your answer. Maryland law (Md. Comm. Law § 14-202(11)) also explicitly prohibits collectors from filing suit on time-barred debt, threatening to file, or attempting to collect through the courts after the SOL has run. That makes Maryland one of the few states where suing on a time-barred debt is itself a per-se statutory violation by the collector. If a collector sues you after the 3-year clock has expired, you may have both a defense to the suit and a counterclaim worth statutory damages and attorney's fees. Do not pay or even acknowledge old Maryland debt without first checking the SOL.

Can a collector garnish my wages in Maryland?

Yes, but only after suing you and obtaining a judgment, and then only up to limits set by Md. Comm. Law § 15-601.1. Maryland caps wage garnishment at the lesser of (a) 25% of your disposable income or (b) the amount your disposable income exceeds 30 times the federal minimum wage, with somewhat stronger protections in certain counties. Maryland also protects more income types than federal law: Social Security, SSI, VA benefits, unemployment, workers' comp, child support received, and most public assistance cannot be garnished for ordinary consumer debt. To stop or reduce an active wage garnishment, you can file a motion in the court that issued the order claiming exemption, asserting hardship, or contesting the underlying judgment - particularly if the original debt buyer was unlicensed (see Finch v. LVNV). Maryland Legal Aid and many consumer attorneys take these cases on a fee-shifting basis, so representation may cost nothing if you have a viable defense.

What protections does the MCDCA add beyond federal FDCPA?

The Maryland Consumer Debt Collection Act is broader than the federal FDCPA in several important ways. First, it applies to both third-party collectors and original creditors, whereas federal FDCPA mostly exempts original creditors. Second, it specifically prohibits collectors from claiming a right to enforce a debt with knowledge they have no such right - which is the basis for many Finch-style licensing claims. Third, it explicitly prohibits collectors from suing or threatening to sue on time-barred debt. Fourth, MCDCA violations can support claims under the Maryland Consumer Protection Act (Md. Comm. Law § 13-101), which authorizes treble damages and attorney's fees. Combined federal-FDCPA and MCDCA claims often produce larger recoveries than federal law alone. Maryland courts have also been generally receptive to consumer claims. Common MCDCA violations include collecting without a license, suing on time-barred debt, misrepresenting amounts owed, harassing communication, and contacting consumers after a cease-and-desist letter.

How do I respond to a Maryland District Court collection lawsuit?

You generally have 30 days from service to file a written Notice of Intention to Defend with the District Court. Never ignore the summons - that leads to a default judgment, which becomes the basis for wage garnishment and bank seizures. In your answer, raise every available affirmative defense: statute of limitations (3 years for most contract debt), lack of standing (the debt buyer must prove a complete chain of title from original creditor to itself), unlicensed collection activity under the Collection Agency Licensing Act, failure to validate under FDCPA § 1692g, and any improper service or venue. Maryland courts require debt buyers to produce actual proof of assignment, not just a generic affidavit - missing or incomplete documentation is a common reason for dismissal. Maryland Legal Aid (1-866-MD-LAW-HELP) provides free or low-cost help for income-eligible consumers, and many private consumer attorneys take these cases on contingency or with fee-shifting. Counter-suing under MCDCA and FDCPA can transform the case from "how do I avoid paying" into "the collector pays me."