Sued by Encore Capital Group in Wyoming? 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 Wyoming, the statute of limitations for credit card debt is 8 years. If your last payment was more than 8 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 Wyoming 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.

Wyoming Wage Garnishment Exemptions

Federal limits apply. 75% of disposable earnings or 30x minimum wage exempt.

Wyoming Consumer Protection Act

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

Wyoming Court System

Small claims limit $6,000. Circuit court handles larger civil cases. District court for complex matters. Filing fees in Wyoming typically range $50-$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 to respond in Wyoming?

20 days from service.

What is the SOL in Wyoming?

8 years for most debts. 10 years for written contracts.

Can wages be garnished?

Yes. Federal limits apply.

Where are cases filed?

Small claims up to $6,000. Circuit court for larger amounts.

What is the statute of limitations on debt in Wyoming?

Wyoming has one of the longest statutes of limitations on written contracts in the country: ten years under Wyo. Stat. § 1-3-105(a)(i). For oral contracts, it is eight years under § 1-3-105(a)(ii). However, most credit card cardholder agreements designate the law of another state (often Delaware, South Dakota, or Utah), and Wyoming courts can apply that state's shorter statute of limitations under choice-of-law principles or Wyoming's borrowing statute, Wyo. Stat. § 1-3-117. This means in practice, the effective limitations period for credit card debt in Wyoming is often three to six years, depending on the cardholder agreement. For installment loans, the clock generally starts ticking on each missed payment, although most courts treat the full balance as due once the lender accelerates the loan. If you are sued on an old debt, raise both Wyoming's limitations period and any shorter period from choice-of-law as defenses in your answer; the defense is waived if not raised.

How much of my wages can a debt collector take in Wyoming?

After a judgment, Wyoming follows the federal garnishment cap under Wyo. Stat. § 1-15-408. A creditor can take the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. Disposable earnings means what is left after legally required deductions like federal taxes and Social Security, not voluntary deductions. Wyoming does not provide enhanced wage protections beyond the federal floor for general consumer debts. Government debts like child support, federal student loans, and taxes follow different and sometimes higher caps under federal law. Wyoming exempts certain categories of income entirely from garnishment, including Social Security, SSI, veterans benefits, unemployment compensation, workers compensation, and most retirement benefits. You can file a claim of exemption with the court using the form provided with the garnishment notice. Active-duty servicemembers have additional protections under the federal Servicemembers Civil Relief Act.

Is a debt collector required to be licensed in Wyoming?

Yes. Under Wyo. Stat. § 33-11-101 et seq., collection agencies operating in Wyoming must be licensed by the Wyoming Collection Agency Board, a regulatory body that oversees collection agency conduct, and must post a surety bond. You can verify a collector's status by contacting the Wyoming Collection Agency Board, which operates under the Wyoming Department of Audit. If a collector contacting or suing you is not licensed and bonded as required, that itself is a violation and can support a complaint to the Board, the Attorney General's Consumer Protection Unit, and potentially a defense in a collection action. The licensing requirement applies to third-party collection agencies and debt buyers collecting in their own name. Original creditors collecting their own debts are not required to be licensed, although they are still subject to general consumer protection law. Operating as an unlicensed collection agency in Wyoming is also subject to civil penalties and potentially criminal sanctions.

I was sued in Wyoming small claims court. What should I do?

Wyoming small claims court, under Wyo. Stat. § 1-21-201, handles civil cases up to $6,000. The procedure is faster and less formal than circuit court or district court. The summons will tell you a specific court date. Show up. If you fail to appear, the court will enter a default judgment for the collector. Bring any documents you have, including the original contract if available, payment records, and any communications from the collector. Make the debt buyer prove they own the debt by asking the judge to require the bill of sale, the chain of assignments from the original creditor to the current plaintiff, and the original cardholder agreement. Many small claims debt buyer cases collapse when the plaintiff appears with only a one or two page affidavit. Raise affirmative defenses orally, including statute of limitations, lack of standing, failure to be licensed under the Wyoming Collection Agency Act, and federal FDCPA violations. Either party can appeal a small claims judgment to circuit court within a short timeframe.

Can I sue a debt collector in Wyoming for violations?

Yes. The federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692k, allows you to sue an abusive third-party debt collector for actual damages, statutory damages up to $1,000 per lawsuit, and attorney fees and costs. Common violations include calling repeatedly, calling at unreasonable hours (before 8 a.m. or after 9 p.m. local time), threatening lawsuits the collector does not intend to file, misrepresenting the amount or character of the debt, contacting third parties about your debt, and continuing to collect after a written cease and desist or written dispute. The Wyoming Consumer Protection Act, Wyo. Stat. § 40-12-101 et seq., provides additional remedies under state law for deceptive practices in consumer transactions, and § 40-12-108 creates a private right of action. The Wyoming Collection Agency Act provides administrative remedies through the Wyoming Collection Agency Board. Keep records of every call, every letter, and every voicemail. The one-year FDCPA statute of limitations runs from the date of the violation, so do not wait to consult a consumer protection attorney.