Sued by Midland Credit Management in District of Columbia? 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 District of Columbia, 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. 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 District of Columbia 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.

District of Columbia Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 40x federal minimum wage exempt. DC's higher minimum wage provides extra protection.

DC Consumer Protection Procedures Act

In addition to the federal FDCPA, District of Columbia's DC Consumer Protection Procedures Act may provide additional protections and remedies against Midland Credit Management's collection practices.

District of Columbia Court System

Small claims limit $10,000. DC Superior Court handles all civil cases. Filing fees in District of Columbia typically range $15-$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 to respond in DC?

21 days from service.

What is the SOL in DC?

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

Can wages be garnished in DC?

Yes, but DC's high minimum wage means the 40x minimum wage exemption provides strong protection.

Where are cases filed?

DC Superior Court handles all civil cases, including small claims up to $10,000.

What is the DC statute of limitations on credit card debt?

DC applies a three-year statute of limitations to actions on simple contracts and obligations not under seal under D.C. Code § 12-301(7), which courts have applied to credit card accounts. The clock typically begins on the date of default or last payment. Three years is one of the shorter SOLs in the country, making DC consumer-friendly on time-barred debt. Once three years pass, the debt is time-barred and a suit on it violates 15 U.S.C. § 1692e(2) and § 1692f(1) of the federal FDCPA, as well as the DC Consumer Protection Procedures Act (D.C. Code §§ 28-3901 et seq.). Raise the statute of limitations as an affirmative defense in your Answer and consider counterclaims under both the FDCPA (with $1,000 in statutory damages, actual damages, and attorney's fees under § 1692k) and the CPPA (with treble damages and attorney's fees under D.C. Code § 28-3905). Be cautious about new payments or written acknowledgments, which can restart the SOL under D.C. Code § 28-3506.

What does the DC Protecting Consumers from Unjust Debt Collection Practices Act do?

The DC Protecting Consumers from Unjust Debt Collection Practices Amendment Act of 2022 substantially strengthened the District's existing debt collection law (D.C. Code §§ 28-3814 et seq.). Key changes include: (1) extending the law to cover original creditors, not just third-party collectors, similar to California's Rosenthal Act; (2) capping collector communications at three calls per week and one written communication per week per debt; (3) requiring more detailed validation notices than the federal FDCPA at 15 U.S.C. § 1692g; and (4) prohibiting collection on time-barred debts. Violations support private actions under D.C. Code § 28-3814(k) with statutory damages, actual damages, and attorney's fees, and the DC Office of the Attorney General can also enforce the law under the DC Consumer Protection Procedures Act. Together with the federal FDCPA and CFPB Regulation F (12 CFR Part 1006), these protections make DC one of the most consumer-friendly jurisdictions.

How does the DC Consumer Protection Procedures Act help in debt collection?

The DC Consumer Protection Procedures Act (CPPA), D.C. Code §§ 28-3901 et seq., is one of the most powerful state-level consumer protection statutes in the country. It prohibits unfair or deceptive trade practices, which DC courts have applied to abusive debt collection conduct. Under D.C. Code § 28-3905(k), private plaintiffs can recover treble damages or $1,500 per violation (whichever is greater), punitive damages, attorney's fees, and reasonable costs. Unlike the federal FDCPA at 15 U.S.C. §§ 1692-1692p, the CPPA reaches original creditors as well as third-party collectors. The same conduct that supports an FDCPA counterclaim (false statements under § 1692e, unfair practices under § 1692f, validation failures under § 1692g) often supports a parallel CPPA claim with significantly higher damages. The DC Attorney General's Office of Consumer Protection also enforces the CPPA in pattern cases.

How much can be garnished from my paycheck in DC?

DC follows federal-floor wage garnishment but with one important enhancement. Under D.C. Code § 16-572, the maximum weekly garnishment is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 40 times the higher of the state or federal minimum wage. With DC's 2026 minimum wage of $17.50, the protected weekly floor substantially exceeds the federal 30x minimum wage floor under 15 U.S.C. § 1673. The DC Protecting Consumers from Unjust Debt Collection Practices Amendment Act also limits the percentage that can be garnished for low-income consumers. To assert exemptions, file a claim of exemption with the DC Superior Court. Federal benefits like Social Security, SSI, and VA payments remain fully protected under 42 U.S.C. § 407, and DC also exempts certain retirement income under D.C. Code § 15-501.

What courts handle debt cases in the District of Columbia?

DC Superior Court is the trial court of general jurisdiction for the District. Debt collection cases are filed in either the Small Claims and Conciliation Branch (for cases up to $10,000 under D.C. Code § 11-1321) or the regular Civil Division (for larger amounts). In small claims, parties may represent themselves or be represented by counsel, and the procedure is simplified. In the regular Civil Division, formal pleading rules apply. You have 21 days from service to file an Answer in the Civil Division under D.C. Super. Ct. Civ. R. 12(a), and small claims cases require an appearance on the return date listed on the summons. Your Answer should deny the allegations you contest and raise affirmative defenses including statute of limitations under D.C. Code § 12-301(7), lack of standing, failure to validate under 15 U.S.C. § 1692g, and any CPPA or DC debt collection law violations. The federal FDCPA at § 1692i and DC residency rules require the suit to be in DC if you live there.