Sued by Midland Credit Management in Colorado? Here's What to Do Next

2015 · consent order

$42M in consumer refunds + $10M civil penalty; ceased collection on $125M in debt

CFPB found that Encore, Midland Funding, and Midland Credit Management violated the FDCPA, CFPA, and Fair Credit Reporting Act by collecting on debts they could not substantiate, filing misleading affidavits in court, and pursuing debts past the statute of limitations.

CFPB source

2020 · lawsuit settled

$15M civil penalty + consumer redress

CFPB sued Encore and its subsidiaries for violating the 2015 consent order — including continuing to collect on time-barred debt without required disclosures. The settlement extended the conduct provisions of the 2015 order for five additional years.

CFPB source

Statute of Limitations Defense

In Colorado, the statute of limitations for credit card debt is 6 years. If your last payment was more than 6 years ago, the debt is time-barred. Midland Credit Management 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, Midland Credit Management must prove they actually purchased your specific account. Demand the complete chain of title — the purchase agreement, bill of sale, and assignment documents. In Colorado 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.

Colorado Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 40x federal minimum wage is exempt. Head of household may get additional protection.

Colorado Fair Debt Collection Practices Act (CFDCPA)

In addition to the federal FDCPA, Colorado's Colorado Fair Debt Collection Practices Act (CFDCPA) may provide additional protections and remedies against Midland Credit Management's collection practices.

Colorado Court System

County court handles civil cases up to $25,000. District court for larger amounts. Filing fees in Colorado typically range $85-$250.

Who is Midland Credit Management?

Midland Credit Management (MCM) is a debt collection company and subsidiary of Encore Capital Group. They purchase defaulted debts from banks and other creditors, then aggressively pursue collection including filing lawsuits.

How do I respond to a Midland Credit Management lawsuit?

You must file a written Answer with the court before your state's response deadline. In your Answer, you should deny the allegations you dispute, raise affirmative defenses like statute of limitations or lack of standing, and demand they prove they own the debt.

Can Midland Credit Management garnish my wages?

Only after they obtain a court judgment against you. If you do not respond to the lawsuit, they will get a default judgment. Some states like Texas, Pennsylvania, and North Carolina do not allow wage garnishment for consumer debts.

What if Midland Credit Management is reporting wrong information?

If MCM is reporting inaccurate debt information to credit bureaus, this may violate the FDCPA and the Fair Credit Reporting Act (FCRA). You can dispute the information with the credit bureaus and file complaints with the CFPB.

Is Midland Credit Management the same as Midland Funding?

Midland Funding LLC is the entity that purchases the debts, while Midland Credit Management is the collection arm that contacts consumers. Both are subsidiaries of Encore Capital Group and often appear together in lawsuits.

How long do I have to respond in Colorado?

21 days from service to file your Answer.

What is the statute of limitations in Colorado?

6 years for all types of contracts including credit cards and written agreements.

Does Colorado have its own debt collection law?

Yes. The Colorado Fair Debt Collection Practices Act provides protections beyond the federal FDCPA.

Can wages be garnished in Colorado?

Yes. The greater of 75% of disposable earnings or 40 times the federal minimum wage is exempt.

How does Colorado's state FDCPA differ from the federal FDCPA?

Colorado's state Fair Debt Collection Practices Act (Colo. Rev. Stat. §§ 5-16-101 et seq.) substantially tracks the federal FDCPA (15 U.S.C. §§ 1692-1692p) but with several Colorado-specific enhancements. First, it requires collection agencies to be licensed by the Colorado Administrator of the Uniform Consumer Credit Code under Colo. Rev. Stat. § 5-16-103. An unlicensed collector cannot collect or sue on a Colorado debt; doing so violates both the licensing statute and the state FDCPA. Second, Colorado restricts contact methods and time-of-contact rules similarly to federal Regulation F (12 CFR Part 1006). Third, remedies under Colo. Rev. Stat. § 5-16-113 include actual damages, statutory damages up to $1,000, attorney's fees, and class-action damages up to the lesser of $500,000 or 1% of the collector's net worth. Both statutes can be enforced in parallel as counterclaims to a collection suit.

How much can a creditor garnish from my wages in Colorado?

Colorado is more protective than the federal floor. Under Colo. Rev. Stat. § 13-54-104, the maximum wage garnishment is the lesser of 20% of disposable earnings (not 25% as under federal law) or the amount by which weekly disposable earnings exceed 40 times the state minimum wage. With Colorado's 2026 state minimum wage of $14.81, the protected weekly amount substantially exceeds the federal 30-times-federal-minimum-wage floor at 15 U.S.C. § 1673. To assert the exemption, file a claim of exemption with the issuing court immediately after receiving notice of garnishment, and request a hearing. Federal benefits including Social Security, SSI, and VA benefits remain fully protected under 42 U.S.C. § 407. Colorado also exempts certain types of pension and retirement income under Colo. Rev. Stat. § 13-54-102.

What is the statute of limitations for credit card debt in Colorado?

Colorado applies a six-year statute of limitations to actions on contracts and instruments for the payment of money under Colo. Rev. Stat. § 13-80-103.5, which courts have applied to credit card debts. The clock generally begins on the date of default or last payment. Once six years pass, the debt is time-barred. A collector who sues anyway violates 15 U.S.C. § 1692e(2) and § 1692f(1) of the federal FDCPA as well as the parallel Colorado FDCPA (Colo. Rev. Stat. §§ 5-16-101 et seq.). Raise the statute of limitations as an affirmative defense in your Answer along with a counterclaim for statutory damages up to $1,000 per action plus attorney's fees under both statutes. Be cautious: partial payment or a written acknowledgment can revive the SOL under Colo. Rev. Stat. § 13-80-113, so do not pay or sign anything on an old debt without legal advice.

How does Colorado protect against medical debt collection?

Colorado has some of the strongest medical debt protections in the country. Colorado SB 21-227, codified at Colo. Rev. Stat. §§ 25-3-501 et seq., requires hospitals to screen patients for financial assistance before referring debts to collection and limits collection actions on medical debt that should have been covered by assistance programs. In addition, Colorado SB 23-093 prohibits the reporting of medical debt to consumer credit reporting agencies starting in 2024, which means a paid or unpaid Colorado medical debt cannot legally appear on your credit report. If a collector is reporting Colorado medical debt to a CRA, dispute it with the bureau and the furnisher under 15 U.S.C. § 1681s-2 of the Fair Credit Reporting Act and consider an FCRA claim. The Colorado AG's Consumer Protection Section actively investigates violations of these medical-debt rules.

Where are debt collection cases filed in Colorado?

Colorado debt collection cases are filed in either county court (for amounts up to $25,000) or district court (for amounts above $25,000). Small claims court handles cases up to $7,500 but does not allow representation by attorneys for either side, which most collectors avoid. The federal FDCPA at 15 U.S.C. § 1692i and Colorado law at Colo. R. Civ. P. 98 require suit in the county where you currently reside or where you signed the original contract. If the collector files in the wrong county, raise improper venue immediately and consider an FDCPA counterclaim, which is a per se violation. You have 21 days from service to file an Answer in Colorado county court and 21 days in district court. Failing to answer allows a default judgment, exposing you to wage garnishment up to 20% under Colo. Rev. Stat. § 13-54-104 and bank levies on non-exempt funds.