Sued by Midland Credit Management in Indiana? 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 Indiana, 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 Indiana 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.

Indiana Wage Garnishment Exemptions

Federal limits apply. Indiana also follows the 30x minimum wage floor.

Indiana Deceptive Consumer Sales Act

In addition to the federal FDCPA, Indiana's Indiana Deceptive Consumer Sales Act may provide additional protections and remedies against Midland Credit Management's collection practices.

Indiana Court System

Small claims limit $10,000. Circuit and superior courts handle larger civil matters. Filing fees in Indiana typically range $50-$200.

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 Indiana?

20 days from service.

What is the SOL in Indiana?

6 years for credit cards and open accounts. 10 years for written contracts.

Can wages be garnished in Indiana?

Yes. Federal limits apply.

Where are debt lawsuits filed in Indiana?

Small claims for up to $10,000. Superior or circuit court for larger amounts.

How long does a creditor have to sue me on Indiana credit-card debt?

Indiana's statute of limitations on a written contract is six years under Ind. Code § 34-11-2-9, and four years on an account or oral contract under Ind. Code § 34-11-2-7. Indiana courts have generally applied the six-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 six years after the last activity, statute of limitations is an affirmative defense that must be pled in your answer under Indiana Trial Rule 8(C) or it is waived. Filing a time-barred collection action 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 Indiana's Deceptive Consumer Sales Act at Ind. Code § 24-5-0.5-3. Partial payment or written acknowledgment can restart the clock.

How much can be taken from my paycheck in Indiana?

Indiana wage garnishment under Ind. Code § 24-4.5-5-105 follows the federal Consumer Credit Protection Act cap at 15 U.S.C. § 1673. A judgment creditor can 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. Voluntary deductions like 401(k) contributions are not subtracted. Child support, alimony, and federal student-loan garnishments follow different percentages under federal law. Social Security, SSI, VA benefits, unemployment, workers compensation, and most retirement income are exempt under federal law and Ind. Code § 34-55-10-2. You preserve exemptions by filing a claim with the court after receiving the wage-garnishment order.

What happens if I do not show up to small-claims court in Indiana?

Indiana small-claims hearings on collection matters up to $10,000 are governed by the Indiana Small Claims Rules. If you do not appear at the hearing date listed on the notice of claim, the court will enter a default judgment for the amount claimed plus court costs under Small Claims Rule 10(B). Once entered, the judgment is enforceable for 20 years under Ind. Code § 34-55-9-2 and can be used to garnish wages, levy bank accounts, and place liens on real estate. You may move to set aside a default under Small Claims Rule 10(C) by showing excusable neglect and a meritorious defense, but the motion must be filed within one year. The right approach is to appear at the initial hearing and assert affirmative defenses such as statute of limitations and lack of standing on the record.

Can a debt collector contact my employer or family in Indiana?

Generally no. The federal FDCPA at 15 U.S.C. § 1692c prohibits third-party debt collectors from contacting third parties about your debt except to obtain location information, and even then only once per third party. Contacting your employer about the debt itself or telling family members about the amount you owe is illegal. The collector is also barred under 15 U.S.C. § 1692c(b) from contacting third parties after being told you are represented by counsel. Indiana's Deceptive Consumer Sales Act at Ind. Code § 24-5-0.5-3 may also apply to a collector who is also the original creditor and not just a third party. Document any unauthorized contact, including dates, times, names, and what was said, because each violation can mean up to $1,000 plus actual damages and attorney fees under 15 U.S.C. § 1692k.

How do I answer a debt-collection suit filed in Indiana superior court?

If you are sued in Indiana superior court for an amount above $10,000, you have 20 days from service to file a written answer under Indiana Trial Rule 12(A) (23 days if served by mail). 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 Ind. Code § 34-11-2-9, lack of standing of the assignee, improper venue under Trial Rule 75, and any Deceptive Consumer Sales Act or FDCPA counterclaim. Indiana courts use the e-filing system through CourtPortal, and self-represented litigants can find free forms through the Indiana Supreme Court website. Default judgment under Trial Rule 55 is entered automatically if you do not respond.